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Continued in-migration, a strong lending forecast and decreasing vacancy rates in the Portland area mean new office and industrial construction could ramp up in 2015, while multifamily construction could begin to cool off.

Several real estate industry professionals earlier this month participated in a group discussion about 2015 during a breakfast event held by the Oregon-Columbia chapter of the Institute of Real Estate Management at the Oregon Convention Center.

鈥淚n the overall market cycle, I feel like we’re in about the sixth inning,鈥� said Chris Nelson, co-founder of Capstone Partners. 鈥淲ill we get extra innings? I’m not sure. In multifamily, it might be nearly time to sell, but I feel we still have growth potential.鈥�

The metro area is on track to have 7,000 permits issued for new multifamily projects by the end of 2014, and Clay Newton, a vice president at Kidder Mathews, is predicting that 7,500 permits will be issued in 2015, with construction increasing in the suburban markets.

鈥淚’m seeing urban, mixed-use developments under way in the suburbs,鈥� he said. 鈥淚 think that’s a trend that’s going to continue to grow.鈥�

Newton said mixed-use developments help create a 鈥渟ense of place鈥� for tenants.

George Macoubray, a partner at Commercial Realty Advisors Northwest, said Portland’s increasing population of well-educated young people want to live in 鈥�20-minute neighborhoods.鈥�

鈥淭hey don’t want to buy a car, but they’re willing to spend money on craft beer and coffee,鈥� he said. 鈥淭hey want the focus on local 鈥� both retail and restaurant 鈥� and they want all these things within a 20-minute walk from their house.鈥�

At its lowest, Portland’s vacancy rate was at 3.7 percent. Newton predicts that will increase to 4.3 percent by the end of 2015, but said developers have 鈥渢he green light to build鈥� until vacancy rates exceed 5 percent.

鈥淛obs drive pretty much everything,鈥� Nelson said. 鈥淎nd with continued job growth 鈥� in-migration will help increase the demand.鈥�

Eric Haskins, managing director at Jones Lang LaSalle, said Portland’s booming high-tech industry will continue to create demand for office space, pushing the vacancy rate in the city’s Central Business District to below 7 percent by the end of next year. The suburbs, too, are seeing record-low vacancy rates, Haskins said.

鈥淣ext year we will have our sixth straight year of positive net absorption in the city,鈥� Haskins said. 鈥淟ow vacancy rates will push more development and more adaptive reuse and redevelopment.鈥�

Haskins predicts space constraints in the CBD will increase asking rents for office space to $30 per square foot and spur development in the suburbs.

鈥淚 think we’ll see a significant increase in sales volume in 2015 and the price per square foot will be above its pre-recession peak,鈥� Haskins said. 鈥淔ive years from now I think we’re going to look back and realize we were part of a fundamental shift in Portland from a second- to a top-tier city.鈥�

Haskins and several other panel members said they expect 2015 will be an active and 鈥渆xciting鈥� year.

In September, Jones Lang LaSalle ranked Portland as the nation’s No. 8 high-tech hub.

鈥淚nvestors are being told to invest here,鈥� Nelson said.

Investors want in on Portland’s market, so financing is available for speculative development of office and industrial space.

鈥淥n spec development there’s financing happening; there’s plenty of capital out there,鈥� said Ken Griggs, president of Norris, Beggs & Simpson Financial. 鈥淏anks are expecting an expanded supply of capital for the next few years.鈥�

Recent college graduates want to live in Portland, Newton said, and continued job growth in the area will continue to fuel construction of industrial and office space.

Dave Ellis, a principal at Capacity Commercial Group, predicts industrial vacancy rates will dip to below 5 percent by the end of 2015.

鈥淣ot only are we building new product, but it’s being leased,鈥� Ellis said. 鈥淚 predict 1.5 to 2.5 million square feet of net absorption by the end of 2015.鈥�

Ellis said if fuel prices stay low, he expects to see construction of distribution centers for online retailers like Amazon. E-trade distribution centers can have footprints of up to 1.2 million square feet.

Macoubray said e-commerce is creating construction opportunities for retail as well. He cited Cabela’s, which started as a catalog-only retailer, but now has stores often built close to a highway or freeway.

鈥淎ny online company that doesn’t have a brick-and-mortar store I predict will be out of business in 10 years,鈥� Macoubray said. 鈥淧eople want to buy online and be able to go to the store if they want to pick it up or need to return it.鈥�