Industrial rents in the Portland-metro area rose 18 percent in 2016, according to research firm Jones Lang LaSalle.

JLL‘s report underscores the tight market for industrial space amid the e-commerce boom, as firms needing shipping and fulfillment centers compete with other industrial users.

Asking rents increased to $0.59 per square foot on average, up from $0.50, according to JLL.

“Despite significant new deliveries hitting the market in 2016 and 2017, vacancy is expected to remain at historic lows, putting additional pressure on rents in the coming quarters,” JLL stated.

For new construction, rents are being firmly quoted at $0.55 per square foot, with office surcharges at $0.90, according to JLL.

Several industrial projects are in development or under construction around the metro area. In early February, Winkler Development and Watumull Properties Corp. announced The Hopper in Northwest Portland. The project will have 167,000 square feet of industrial space on 5.3 acres at 2000 N.W. Wilson St., the site of a Cenveo Corp. printing plant.

Projects totaling more than 3.5 million square feet are under construction; they include Capstone Partners‘ PDX Logistics Center III and Specht Development‘s Vista Logistics Park in Gresham.

Against this backdrop, Realty Marketing/Northwest is offering at auction two Sheridan parcels totaling 24.25 acres. The manufacturing complex at 888 S.E. Sheridan Road has two sites – one with 112,540 square feet on 13.66 acres, and the other with 102,000 square feet on 10.59 acres.

The properties near Spirit Mountain Casino were built in 1973 and 1978 and need some minor repairs, according to the marketing and auction firm.

The properties can be purchased individually or combined. The bulk published reserve price is $3.1 million, or $14.44 per square foot. Sealed bids are due March 8.

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