Portland Office Market
Net absorption totaled negative 311,820 SF in the first quarter of 2025. The Central Business District (CBD) represented the highest concentration of space returning to the market, as the submarket saw vacancy reach 33.1% across all asset classes. Office market vacancy rose again in the second quarter, with market-wide vacancy reaching 24.3%—a 50-basis-point increase compared to the first quarter of 2025. Asking rents dipped slightly in Portland, with average rent reaching $31.30/SF Full-Service Gross. Rates remained steady among Class A assets, while Class B product experienced a marginal decline in overall asking rates. The Close-In Southeast submarket saw a sharp increase in vacancy as 104,156 SF of space returned to the market. Vacancy in the submarket measured 25.6%, slightly above the market-wide average.
Download Portland Office Market Report 2Q25Portland Industrial Market
Absorption in the first quarter recorded negative 781,472 SF as multiple large block vacancies were realized across the market. Vacancy rates increased to 6.3%, a 30-basis point increase from the first quarter of 2025. Statistically weak performance in the I-5 South Corridor and NE/Columbia Corridor submarkets underlines softening market fundamentals for industrial leasing. Overall leasing activity was up slightly from the first quarter of 2025, and while net absorption outpaced the elevated activity, it is a positive indicator that there is still a healthy level of demand for industrial product moving forward.
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