Portland Industrial Figures Q2 2026

The industrial market remained active in the second quarter, with leasing volume totaling 2.4 million square feet (sq. ft.), up roughly 7.0% from the previous quarter and approximately 25.0% year-over-year (YOY). Tenant demand was driven by a diverse mix of distribution, logistics, retail supply chain, and construction-related users, while renewals continued to play an increasingly important role, accounting for more than half of leased square footage year-to-date (YTD) as many occupiers opt to remain in place. The market also recorded 508,147 sq. ft. of positive net absorption during the quarter, bringing the YTD net absorption figure to 404,872 sq. ft.

Market conditions continue to be shaped by an influx of speculative supply. Vacancy rose to 7.7% as a few large projects have delivered with limited preleasing, increasing availability and tempering rent growth. Despite these headwinds, demand for modern Class A space remains strong in select submarkets, particularly the Sunset Corridor, where premium facilities command some of the market’s highest rental rates. This demand is underscored by DSV’s recent announcement of a build-to-suit (BTS) facility exceeding 750,000 sq. ft. Looking ahead, a robust development pipeline reflects sustained long-term confidence in the market despite near-term demand challenges.