The Port of Portland has approved a ground lease for PDX West Logistics LLC, a project entity formed by Capstone Partners, to develop a 950,000 square foot logistics and distribution hub on a long-vacant site on NE 33rd Avenue adjacent to Portland International Airport.
The US$ 130 million development is projected to create over 500 permanent jobs and generate US$ 4.4 million in state and local taxes annually once operational. Construction spending over the nearly three-year build period is expected to require more than 500 construction workers and contribute over US$ 8 million in additional state and local taxes.
The facility addresses a regional shortage of large, development-ready commercial logistics space, with its location offering strategic access to both I-5 and I-205 for logistics providers serving the Portland metropolitan area and the broader Pacific Northwest.
Groundbreaking is expected in summer 2027.
The project also delivers community infrastructure benefits, including a new traffic signal at the intersection of Northeast 33rd Avenue and Marine Drive within a designated high-crash corridor, and a wide multiuse path along Marine Drive providing improved separation for pedestrians and cyclists currently using the road shoulder along the popular 40-Mile Loop route.
Dan Pippenger, Port of Portland Chief Aviation Officer, described the project as delivering both economic benefits and development-ready space for businesses seeking to grow in the region.
Chris Nelson, Principal at Capstone Partners, highlighted the site’s proximity to PDX and major interstate connections as strategically well positioned for logistics operators, continuing a partnership with the Port of Portland spanning more than two decades.
