Portland Real Estate Market Reports

Portland Office Market

Portland’s office sector recorded its fourth consecutive quarter of negative net absorption, registering negative 244,499 SF. Overall vacancy reached 24.6%, a 30-basis point increase from the previous quarter and a 160-basis point increase year-over-year. Total availability also saw substantial increases, with available space market-wide reaching 26.8%. Asking rents saw a small uptick in the fourth quarter of 2025, largely due to gains in Class A rents, which reached $35.07/SF. The average market asking rent across all asset classes for direct space was $31.17/SF.

Portland Industrial Market

Year-end industrial vacancy reached 7.3%, a 70-basis-point increase from the third quarter of 2025. Quarterly net absorption totaled negative 792,369 SF, driven by large-block space returning to the market in the I-5 South and NE/Columbia Corridor submarkets. Leasing activity declined from the third quarter of 2025, with the market showing continued signs of softening to close the year. Total leasing volume for the year reached 8.2 million SF. Construction activity continued in the fourth quarter, with the total under-construction footprint reaching 4.5 million SF, supported by a 931,186 SF industrial project in Woodland, WA.