In another sign that the Portland metro region's industrial market is improving, Holland Partner Group will add nearly 321,000 square feet of distribution space near Northeast Airport Way in 2015.
The real estate investment company has partnered with global real estate manager Amstar on construction of the Cameron Distribution Center, 16913 N.E. Cameron Blvd. The project broke ground in August and is scheduled to be completed by this summer. Tenants will be able to lease spaces as small as 75,000 square feet.
"The timing of this project couldn't be better," said Tom Talbot, the listing broker with Kidder Mathews. "The vacancy rates in Airport Way are very low, tenant demand is high and market rents are increasing."
The new center will join another massive warehouse project, the 492,500-square-foot Interstate Crossroads Distribution Center, currently under construction in the Airport Way industrial area. That project, headed up by Specht Development Inc., is farther along the construction timeline and is expected to begin tilting up walls next week.
The increase in speculative construction underscores the strengthening conditions of the Portland metro industrial market.
According to CBRE's third quarter industrial report, industrial vacancy rates dropped from 6 percent in the second quarter to 5.6 percent in the thrid, continuing their steady decline throughout 2014. At the end of the third quarter, Portland's industrial market had a net absorption of more than 2.9 million square feet, already surpassing 2013 totals.
In all, CBRE estimated in its Q3 reporter that more than 4 million square feet of industrial space are under construction in the metro region.
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