Industrial Tenant Representation
Portland industrial leasing strategy built on market positioning, tenant qualification, and lease structure — designed to minimize downtime, protect economics, and secure tenants that fit the asset.
WHAT IS LANDLORD REPRESENTATION
Industrial landlord representation means hiring a commercial real estate broker who works exclusively on behalf of the property owner to lease vacant or soon-to-be-vacant industrial space. The landlord's rep is responsible for pricing strategy, marketing execution, tenant prospecting, tour coordination, tenant qualification, lease negotiation, and transaction management from listing through lease execution.
The broker's job is to fill vacancy with qualified tenants at the strongest achievable economics — not just the first tenant who shows interest, but the right tenant at the right rate on terms that protect the landlord's position for the duration of the lease. That means evaluating creditworthiness, use compatibility, and operational fit alongside rate and term.
Landlord representation is typically commission-based, calculated as a percentage of aggregate lease value or a per-square-foot fee, and paid when the lease is executed. The commission covers both the listing broker and any cooperating tenant rep broker. In most standard engagements there is no retainer or upfront cost. The value of representation shows up in reduced vacancy time, stronger lease economics, better tenant quality, and lease structures that minimize landlord risk on renewals, defaults, and early termination.
WHY IT MATTERS IN PORTLAND’S INDUSTRIAL MARKET
Portland's industrial leasing market has been tight for years, but tight doesn't mean landlords can afford to be passive. Vacancy rates vary significantly by submarket, building quality, and functional specs. A modern distribution facility on Airport Way with 32-foot clear and full dock loading will attract a different tenant pool — and command different economics — than an older multi-tenant flex building in Clackamas with 16-foot ceilings and grade-level doors.
The tenants who are actively searching right now aren't all the same either. Some are logistics operators who need specific loading, clear height, and trailer staging. Some are manufacturers who care about power, ventilation, column spacing, and floor load capacity. Some are service contractors who need yard, small office, and a few drive-in doors. Each of these tenants evaluates space differently, and the marketing that reaches one won't necessarily reach the others.
In this environment, landlord representation matters because the difference between a well-positioned listing and a passively marketed one is measured in months of vacancy and thousands in lost rent. A landlord's rep prices the space based on current comps — not what the last tenant was paying — targets the right tenant profile for the building's specs, qualifies prospects before they tie up space with an LOI they can't perform on, and negotiates lease terms that protect the landlord's economics through the full term. That includes rent escalations, expense structures, renewal options, assignment and sublease restrictions, restoration obligations, and yard use provisions that are easy to overlook and expensive to fix after the lease is signed.
HOW LANDLORD REPRESENTATION WORKS
The landlord rep process follows a structured sequence designed to position the space, generate qualified tenant interest, and execute a lease that protects the owner's economics and flexibility. Every engagement is different, but the core framework applies whether the asset is a single-vacancy warehouse or a multi-tenant industrial park with rolling expirations.
Step 1 — Space Evaluation and Pricing Strategy. The available space is evaluated on the factors that drive industrial lease rates: location, clear height, loading configuration (dock-high, grade-level, drive-in), power capacity, fire suppression, office finish ratio, yard and trailer staging, and site access and circulation. The space is benchmarked against current comparable listings and recent lease comps in the submarket — adjusting for building age, condition, functional differences, and concession packages. A pricing recommendation is developed that balances market competitiveness with the landlord's income objectives. Pricing too high extends vacancy; pricing too low leaves economics on the table and sets a weak baseline for future renewals.
Step 2 — Tenant Targeting and Market Positioning. The most likely tenant profile is identified based on the space's characteristics. A 50,000 SF distribution building with cross-dock loading will attract a different user than a 5,000 SF service bay with yard. The broker builds a positioning narrative around the space's strengths relative to what's actively available in the submarket, and targets marketing to the tenant segments most likely to lease. This includes identifying tenants with known upcoming lease expirations, businesses expanding in the market, and companies relocating to Portland — not just waiting for inbound inquiries.
Step 3 — Marketing and Outreach Execution. The space is marketed through listing syndication (CoStar, LoopNet, Crexi), broker-to-broker outreach, targeted email campaigns to tenant rep brokers and direct users, signage, and proactive prospecting of known active requirements. For industrial product, the listing details need to be complete and specific — tenants and their brokers are screening on clear height, loading, power, yard, and zoning before they ever schedule a tour. Vague or incomplete listings get skipped. The goal is to generate qualified showings quickly, not accumulate unqualified inquiries.
Step 4 — Tenant Qualification and Tour Management. Incoming inquiries are screened before tours are scheduled. Qualification includes confirming the prospect's intended use is compatible with the building and zoning, that the space specs match their operational requirements, and that they have the financial capacity to perform on the lease. For industrial tenants, use compatibility is critical — a landlord doesn't want to discover after LOI that the tenant's operation requires environmental permitting the building can't support, or that their truck traffic exceeds what the site circulation can handle. Tours are coordinated with context: the broker positions the space's strengths relative to what else the tenant is seeing in the market.
Step 5 — Lease Negotiation and LOI Execution. The letter of intent is negotiated to lock in the key economic and structural terms before moving to lease drafting. For industrial leases, negotiation goes well beyond base rent. Key terms include expense structure (NNN, modified gross, base year), rent escalation schedule, tenant improvement allowance and delivery condition, free rent and concession structure, renewal options and renewal rate mechanisms, expansion and contraction rights, assignment and sublease restrictions, permitted use and exclusivity provisions, restoration and surrender obligations, and yard use and storage provisions. The broker negotiates each of these with the landlord's long-term position in mind — because a lease that looks good on rate but gives away too much on options, assignment rights, or restoration can cost the landlord significantly over a 5- or 7-year term.
Step 6 — Lease Execution and Delivery. The lease is reviewed against the LOI terms, with attention to the business terms that often get renegotiated during drafting: delivery condition and timeline, TI scope and approval process, insurance requirements, maintenance and repair obligations, environmental provisions, default and remedy language, and holdover terms. The broker coordinates between the landlord's legal counsel, property manager, and tenant's team to keep the process moving and prevent delays that risk losing the tenant to a competing space. The goal is a clean lease execution and a smooth transition to occupancy.
ECONOMICS & VALUE
Cost Overview
Industrial landlord representation in Portland is commission-based and typically paid at lease execution. The commission covers the listing broker and the cooperating tenant's broker. There is no upfront cost or retainer in most standard engagements. The value of landlord representation shows up in three places: reduced vacancy time that preserves NOI, stronger lease economics achieved through competitive positioning and negotiation, and lease structures that protect the landlord's position on renewals, defaults, expenses, and exit. Every month of avoided vacancy on a 20,000 SF industrial space at $1.00/SF NNN is $20,000 in preserved income — which typically exceeds the cost of representation on even a single avoided vacancy month.
Positioning Improves Vacancy
The primary value of landlord representation is positioning — getting the right space in front of the right tenants at the right price, fast. Industrial tenants search differently than office tenants. They filter on functional specs first (clear height, loading, power, yard) and location second. If the listing doesn't communicate those details clearly, it gets filtered out before anyone calls. A landlord's rep builds marketing materials that answer the operational questions industrial tenants ask before touring, prices the space against current comps rather than historical rates, and proactively targets tenants with known requirements that match the space. In Portland's industrial market, where functional inventory is limited in the strongest corridors, well-positioned listings lease faster and at stronger economics than passively marketed ones.
Why Work with a Landlord Rep
A landlord's rep works exclusively for the property owner — aligning every recommendation with the landlord's financial and operational objectives. That alignment matters when deciding whether to accept a tenant at a lower rate to avoid vacancy, whether a prospect's use is compatible with the building and other tenants, or whether a concession request is reasonable relative to market. Beyond negotiation, the broker provides market intelligence on competing availabilities, recent lease comps, and tenant demand by submarket that informs pricing and concession decisions throughout the engagement. For multi-tenant properties, the broker also manages the leasing pipeline across multiple vacancies — sequencing deals, coordinating tenant mix, and avoiding conflicts between uses that could create problems for existing tenants or limit future leasing flexibility.
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GET IN TOUCH
Contact Matt Lyman at Norris & Stevens about leasing industrial space in Portland — whether you have current vacancy, upcoming rollover, or a multi-tenant property that needs a leasing strategy.
Share your building address, available square footage, current lease status, and timeline, and Matt will follow up with current market comps, a pricing recommendation, and a recommended leasing approach.
Coverage spans the full Portland metro industrial market — Airport Way/Columbia Corridor, Swan Island/Rivergate, Central Eastside, Clackamas/Outer SE, Hillsboro/Sunset Corridor, Tualatin/Sherwood, and Vancouver, WA.