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Portland, Oregon | Msa Economic and Demographic Overview 1Q | 20 PORTLAND, OREGON | MSA ECONOMIC AND DEMOGRAPHIC OVERVIEW 1Q | 20 a Berkshire Hathaway and Jefferies Financial Group company PORTLAND, OREGON | MSA Prominent Job Growth Amazon, Intel, and Nike are scheduled to bring more than 2,650 permanent jobs to Greater Portland over the next five years - The Oregonian Affluent Place for Business Portland was No. 3 among the "Best Place for Businesses and Careers" - Forbes INTRODUCTION The Portland-Vancouver-Hillsboro, OR-WA, Metropolitan Statistical Area (MSA) encompasses five counties in Oregon (Clackamas, Columbia, Multnomah, Washington, and Yamhill) and two counties in Washington Fortune 500 Hub (Clark and Skamania). Home to nearly 2.5 million residents, the Portland MSA is the most populated metropolitan area in Oregon, the second- Portland boasts a prominent Fortune 500 company presence largest metro in Washington, and the 23rd-largest MSA in the nation. supported by Amazon, Intel, Nike, and Precision Castparts Separated by the Columbia River, Metro Portland is a strategic center of - Fortune trade and commerce that is uniquely positioned along the Pacific Rim in the Pacific Northwest of the United States. As a vibrant and attractive business location with a variety of commercial and industrial sites, the Portland region boasts one of the most diverse economies on the West Coast served by an efficient multimodal Off-Campus Housing Demand transportation system sector as well as biotechnology, health sciences, and alternative energy. Portland State University offers approximately 2,100 on-campus beds, leaving more than 23,900 students in need of off-campus housing - Portland State University BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA DEMOGRAPHICS ST 1 67% OF WORKERS ARE IN 39.7 MOST POPULATED WHITE-COLLAR MEDIAN AGE METRO IN POSITIONS METROWIDE OF METRO RESIDENTS OREGON $ 2.6M 655.8K 332.6K 373.7K 83.8K Greater Portland’s The metro area’s median Nearly 39% of residents Approximately 34% More than 36% of population is forecast to age 25 and older hold of Metro Portland housing units in Greater household income grow 6.3% over the next a bachelor’s degree or households earn Portland are renter- is projected to reach five years, surpassing 2.6 higher, compared to 31% $100,000 or more occupied, outpacing the $83,797 by 2025, up million residents nationally annually, compared to national rate of 31% 16.8% from 2020 28% nationally BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA METRO EMPLOYMENT TRENDS AVERAGE ANNUAL WAGE BY OCCUPATION $ The Portland metropolitan area is the financial, trade, transportation, and service center Management K for Oregon, southwest Washington, and the Columbia River Basin. Its manufacturing base 115.5 includes electronics, machinery, transportation equipment, and fabricated metals. Health Care Practitioners $ Portland's economy has come under severe strain because of the coronavirus pandemic. Total & Technicians 98.0K nonemployment contracted 12.0% year over year through May 2020. Business & $ Industry Breakdown Mining, Logging, & Construction Financial Operations 76.7K 7% Trade, Transportation, & Utilities Educational Instruction $ 19% & Library 65.5K Education & Health Services 15% $ Construction & Extraction 61.0K Sales $ PORTLAND, OR, MSA 47.5K Financial Activities Professional & Business Services EMPLOYMENT BY 6% Office & Administrative $ 16% SECTOR Support 43.8K $ Manufacturing 43.1K Government Other Services 14% Transportation & $ 3% Material Moving 40.7K Information Manufacturing 2% 11% Leisure & Hospitality Food Preparation & $ 6% Service 30.5K Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA MARKET RESILIENCY ANALYSIS MARKET NATIONAL RATE 22.7% RATE 20.2% of jobs are in high-risk industries of jobs are in high-risk industries INDUSTRY COMPOSITION JOBS EXPOSURE Risk Level # of Employees % of Market National Avg. High Low MediumJOB EXPOSUREHigh Accommodation and food services 108,054 9.0% 9.6% Arts, entertainment, and recreation 21,899 1.8% 1.9% Construction 77,213 6.4% 5.3% Management of companies and enterprises 43,057 3.6% 1.6% Real estate and rental and leasing 21,586 1.8% 1.7% 23% Unclassified 824 0.1% 0.1% 33% Total 272,633 22.7% 20.2% Medium Administrative and waste services 68,557 5.7% 6.5% Educational services 88,974 7.4% 7.1% Manufacturing 127,260 10.6% 8.7% Mining, quarrying, and oil and gas extraction 494 0.0% 0.4% Other services, except public administration 47,452 4.0% 3.2% Professional and technical services 78,621 6.6% 6.6% Retail trade 115,337 9.6% 10.5% Total 526,695 43.9% 43.6% Low Agriculture, forestry, fishing and hunting 15,871 1.3% 1.0% Finance and insurance 42,237 3.5% 4.1% Health care and social assistance 163,071 13.6% 15.1% Information 26,979 2.3% 2.1% Public administration 38,107 3.2% 5.5% Transportation and warehousing 51,816 4.3% 4.4% Utilities 5,790 0.5% 0.6% Wholesale trade 55,376 4.6% 4.0% 44% Total 399,247 33.3% 36.8% Total 1,198,575 100.0% 100.6% BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA METRO EMPLOYMENT TRENDS MAY 2020 14.0% the metro's monthly unemployment rate increased 1,040 bps annually Employment Trends 15% 50,000 PORTLAND, OR, MSA LARGEST EMPLOYERS Intel Corp. 20,600 12% 0 Providence Health & Services 18,900 Oregon Health & Sciences University 17,600 9% (50,000) Kaiser Permanente 12,400 Nike Inc. 12,000 6% (100,000) Legacy Health 11,400 Fred Meyer Stores 11,000 City of Portland 9,700 3% (150,000) Portland Public Schools 7,600 Beaverton School District 5,500 0% (200,000) Sources: Multnomah County 2019 CAFR; Clackamas County 2019 CAFR; Clark 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* County 2018 CAFR *May Unemployment Rate Jobs Added / Lost MAY 2020 (146,700) jobs were eliminated metrowide, a 12.0% annual decrease BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA TRADE AND DISTRIBUTION $ PORT OF PORTLAND 3.5 billion 71,800 Personal Income Jobs Supported Generated $7.0 billion Economic Impact Located at the confluence of the Willamette and Columbia Rivers, thePort of Portland operates four marine terminals, four airports, six business parks, and the Portland Ship Yard. With a total economic impact of more than $7 billion, the port’s maritime and aviation operations generate over 71,800 direct and indirect jobs, $3.5 billion in personal income, and $315 million in taxes each year. Companies that operate warehouse and distribution facilities at the port include Columbia Sportswear, ConocoPhillips, BNSF, and Union Pacific. TECHNOLOGY INTEL - RONLER CAMPUS 35,400 $92,800 Jobs Supported Annual Median Wage $26.8 billion Intel Economic Impact Referred to as the "Silicon Forest," Portland's technology sector plays a major role in the local economy, with more than 35,400 people employed by software and technology firms. Key technology employers include Google, Cadence Design Systems, Hewlett-Packard, eBay, Salesforce, New Relic, Airbnb, IBM, Synopsys, and Xerox. The region's largest employer, Intel Corporation supports 20,600 jobs. The California-based microchip manufacturer generates a $26.8 billion economic impact in Oregon. BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA LEISURE AND HOSPITALITY OREGON CONVENTION CENTER 62,100 8.8 million Jobs Supported Overnight Visitors $5.6 billion Tourist Spending Tourism is a major driver in the regional economy, supporting 62,100 jobs in the metro area in May 2020. Known for a thriving outdoor scene and an eclectic mix of breweries and restaurants, 8.8 million visitors came to the metro for an overnight stay in 2019, generating $5.6 billion in direct spending. With 1,435 total events hosted, the Oregon Convention Center and Portland'5 Centers for the Arts are some of the most visited venues in the metro, generating a combined economic impact of $773 million. ATHLETIC AND OUTDOOR INDUSTRY $ ADIDAS CAMPUS 632 2 billion Athletic and Outdoor Statewide Nike Firms Economic Impact 20,600 Jobs Supported Greater Portland is a thriving hub for the athletic footwear industry. Businesses in the athletics and outdoor industry directly employ 20,600 workers, outpacing the national average by 50%, while accounting for an additional 11,000 indirect workers. Combined, athletic and outdoor firms generate a total of $3 billion in employee wages annually. The region is home to over600 athletic and outdoor firms, such as Columbia Sportswear, Under Armour, and Adidas. Fortune 500 company Nike is also headquartered in the area, generating a statewide impact of $2 billion. BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW PORTLAND, OREGON | MSA CONSTRUCTION AND DEVELOPMENT NIKE HEADQUARTER EXPANSION PORTLAND DIAMOND PROJECT 2,500 $3 billion Jobs Supported Investment $380 million 34,000-seat Investment MLB Stadium Nike continues a $380 million expansion that involves adding six buildings Come Opening Day 2023, Portland's Terminal 2 will become the official home with over 4 million square feet of new office space, fitness center, and open for Major League Baseball's newest Portland team. The Portland Diamond space to its headquarters in Beaverton. Since 2016, over two million square Project maps out plans for a 45-acre site just north of the Pearl District. feet of office space and 238,000 square feet of accessory space have been Bringing MLB and a new ballpark to Portland is a major undertaking, but delivered, including the Serena Williams building that opened this year. Nike it will provide a catalyst for new office space, a vibrant ballpark district, as has hired more than 2,000 workers and expects to add another 500 or more well as other economic opportunities. Estimated to cost over $3 billion, the jobs by the project’s completion. The company recently announced the project will become one of the region's most scenic destinations, boasting name of its latest building, which is set to open by year-end 2020.
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