Portland Oregon Office Prices Increases 102% Since 2010
There’s no denying that the 2010’s were directly influenced by the 2008 “Great Recession” and economic turnaround which lasted for years.
Besides offering more affordable home prices and a better way of life than other states, the Portland area became a “relocation magnet” during the 2010’s and this was one reason why prices increased in the PDX area across the board over the last 10 years.
A Booming Commercial Real Estate Market
Thanks to a recent study by the commercial cafe, we know that office prices increased have increased by 102% during the 2010s.
Office prices in Portland fluctuated during the last decade but ended at $306 per-square-foot, surpassing the national average by $15 and marking a whopping 102% increase from $152 in 2010;
The highest single-building deal of the last 10 years in Portland was the sale of the U.S. Bancorp Tower by LaSalle Investment Management to UBS Realty Investors in 2015 for $372.5 million;
The largest office property built in the last decade in Portland was the 546,000 square-foot Park Avenue West, completed in 2016;
Last year, for the first time in the past decade, national office construction in urban cores outpaced that of the suburbs;
Nationally, the office sales volume settled after peaking in 2015, while prices continued to rise. The national price-per-square-foot started the decade off at $211 and ended at $291.
Why Have Office Prices Gone Up?
Love it, or hate it, the increase in the price per square feet for offices in the Portland Oregon area is a sign that our local economy has grown tremendously over the last 10 years and local commercial real estate owners have adjusted their prices according to the demand.
Besides luring more people to Portland from across the United States, the PDX area has also lured corporations here over the last 10 years including major companies from Seattle like Microsoft and Google while other corporations like Nike have enhanced their presence in the PDX area.
Although growth has slowed a bit in recent years folks still find Portland to be a compelling place to live and work with nearly 600 people moving here every week. This gives companies an incredible pool of talent from which to draw, a pool that is increasingly becoming younger and more educated. Fifty percent of the labor pool holds degrees in science and engineering fields compared to only 40 percent nationwide.
It’s not hard to see why Portland attracts young professionals with an abundance of quirky culture throughout the city and diverse and beautiful natural elements just outside. Wages are slightly lower than in bigger cities such as New York or San Francisco but, even with some rising prices, the lower cost of living easily compensates.
Starting a Business in Portland?
While Portland does have its behemoths such as Nike, Adidas, and Intel, it’s a small business that really keeps the city running. This is one of the many reasons why new businesses are steadily moving to the Portland metro area. For the retail industry, Oregon’s lack of sales tax is a huge boon. Consumers from neighboring states often come to Portland just to shop. And there are other incentives for entrepreneurship, including property tax abatement, tax subtractions, and other loans, credits, and programs.
With Portland’s lower operating costs embarking on a startup can be less risky than in other cities while still having plenty of resources to draw from. Many incentives exist to bring business to low-income communities which have spurred the revitalization of now bustling neighborhoods such as the Mississippi and Alberta Arts districts.
Contact Rent Portland Homes – Professionals
Are you planning on relocating to the Portland area, or do you need a property manager here that you can trust? We can help! To learn more about the property management services we can offer you contact us today by calling (503) 447-7735 or click here to connect with us online.