Over the first quarter of 2021, we have had mixed signs in the Portland metro area. While total lease transactions increased, the average lease size decreased nearly 30%, confirming what we have expected – companies are decreasing their footprint. Overall gross rent decreased 1.15% YoY, however sublease gross rent has increased 6.5% YoY, an indication that more premium sublease space is being delivered to the market. This trend is further solidified by the fact that the difference between direct and sublease rent has shrunk to 12.4% compared to 18.9% a year ago. There has been some activity in the CBD toward the end of the quarter; however, many companies continue to escape the core downtown area, as demonstrated by the steady rent growth and activity in the prime suburban submarkets.
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