Portland Industrial Figures Q3 2026

Market conditions remained soft in Q3 2026 as vacancy and availability increased while leasing activity slowed. Net absorption totaled 109,000 square feet (sq. ft.), down from 508,000 sq. ft. in Q2 2026, while the vacancy rate rose to 7.7% and availability increased to 10.1%, both up 10 basis points (bps) quarter-over-quarter (QoQ). Leasing volume declined to 1.7 million sq. ft. from 3.4 million sq. ft. in Q2 2026. Deliveries totaled 343,000 sq. ft. during the quarter, while space under construction declined slightly to 3.3 million sq. ft. across 10 projects.

Since 2021, the market has shifted from historically tight conditions to a more tenant-favorable environment characterized by higher vacancy. Vacancy declined to a cycle low of 2.2% in late 2022 before rising to 7.7% as demand moderated and new supply entered the market. While asking rents remain well above pre-2022 levels, they have eased from their peak of $1.06 per sq. ft. NNN in Q1 2023 to $0.97 per sq. ft. in Q3 2026. Leasing activity has also normalized from the record levels achieved earlier in the cycle. The largest lease of the quarter was signed by Javelin Logistics for 99,000 sq. ft. at 138 Logistics Center – Bldg A in the Northeast submarket.