Portland Real Estate Market Reports

Portland Office Market

Net absorption totaled negative 278,145 SF in the first quarter of 2025, with the majority of losses concentrated in the Central Business District (CBD). Office market vacancy rose by 70 basis points during the fourth quarter, reaching 23.8% market-wide. Overall asking rents across Portland averaged $31.41/SF Full-Service Gross, reflecting a 40-basis point increase from the fourth quarter of 2024. The Sunset Corridor experienced a notably weak quarter, posting negative 108,983 SF of absorption and a submarket vacancy rate of 23.5%.

Portland Industrial Market

Absorption in the first quarter recorded negative 70,526 SF as multiple fully preleased construction projects, such as the 533,212 SF GV5 Distribution Center, offset the sizeable amount of space that was returned to the market. Vacancy rates increased to 6.0%, a 60-basis point increase from the fourth quarter of 2024, and a 150-basis point increase year-over-year. Weaker leasing performance in historically strong submarket, Clark County and the I-5 South Corridor, was a key contributor to negative net absorption in the first quarter, reflecting a broader pullback in tenant demand across previously resilient areas.