Portland Office Market
Net absorption totaled negative 289,662 SF in the fourth quarter of 2024, bringing the year’s total to negative 1,247,799 SF. Office vacancy rose by 60 basis points during the fourth quarter, reaching 23.1% market-wide. The Central Business District (CBD) was the weakest-performing submarket in 2024 by the numbers. Total net absorption for the year reached negative 615,652 SF, despite the CBD accounting for the highest percentage of leasing activity among all submarkets.
Download Portland Office Market Report 4Q24Portland Industrial Market
Fourth-quarter absorption recorded negative 512,859 SF, driven primarily by negative absorption in the Milwaukie/Clackamas and 217 Corridor/Beaverton submarkets. Year-to-date net absorption reached 420,194 SF. Vacancy rates rose by 20 basis points to 5.4%, as large blocks of space near the urban core outpaced leasing velocity. Meanwhile, average asking rents edged up slightly to $10.37/SF but remain 2.5% lower compared to the previous year. Leasing activity slowed significantly in the fourth quarter, with total volume declining by 27.5% quarter-over-quarter as market conditions weakened across many Portland-area submarkets.
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