THE OFFICE REPORT
A
Portland Metro Q3 2025 Portland Office Market Woes Continue Amid Growing Vacancy, Negative Absorption, Flight of Tenants
CENTRAL BUSINESS DISTRICT HIGHLIGHTS FORECAST
Inventory ± 29.9M SF
LOCAL TIDBITS Vacancy Hits New High, Surpasses Previous Quarter Portland’s market-wide vacancy rate rose for the fifth consecutive quarter, setting a new record high of 26.6%. The Central Business District saw the highest vacancy levels in the entire metro area at 36.3%. Negative net absorption continued its trend, with an additional 306,000 SF of office space becoming vacant in Q3. For 2025, the Portland market has shed over 800,000 SF of previously occupied space, continuing the years-long trend of tenants relocating outside the central city. Opportunity Remains in Tenant-Friendly Market Portland’s construction pipeline for new office product remains stagnant. With no signs of healthy market improvement for the remainder of 2025, Landlords are expected to continue offering aggressive concessions to attract and retain tenants. Apex notes some groups negotiating leases more than two years in advance of lease expiration, highlighting an unprecedented era of opportunity for tenants who desire to remain committed to the city.
Highlights based on Costar data for all office space use in Portland Metro, exclusive of coworking
REA
S
Average Class A Asking Rate $39.10/SF Full Service Total Vacancy 36.3% Net Absorption (YTD) -306K SF Leasing Volume ± 655K SF Under Construction ± 0 SF
APEX APEX
REAL EST REAL ESTATE PARTNERS PARTNER