Portland Office Market
In the second quarter of 2024, net absorption totaled negative 117,252 SF. The CBD experienced a notable increase in leasing activity and recorded positive absorption for the first time since 2019. Conversely, the Close-In Northwest submarket was the most heavily impacted, with negative absorption of 130,957 SF for the quarter. There are currently no new office projects under development in the Portland market, a trend expected to persist due to market saturation and unfavorable economic conditions, which discourage office construction as an investment for developers. Vacancy rates across the Portland market remained consistent at 22.1%, unchanging from the levels reached in the first quarter of 2024. Asking rates saw an adjustment which may suggest that landlords are beginning to discount properties to combat soft market conditions.
Download Portland Office Market Report 2Q24Portland Industrial Market
Absorption in the second quarter of 2024 totaled negative 459,872 SF. The Northwest and NE/Columbia Corridor submarkets contributed significant levels of negative absorption as demand shifted away from the urban core. The I-5 South Corridor remained Portland’s best-performing industrial submarket. Vacancy for industrial assets reached 5.0% as significant amounts of space returned to the market. An increase in inventory pushed rents down, with the average asking rate across all assets reaching $10.39/SF. Despite negative net absorption, leasing activity was notably higher in the second quarter of 2024. Total leasing activity increased 13.4% quarter-over-quarter.
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