Portland Office Figures Q3 2026

In Q3 2026, market conditions improved modestly as vacancies declined quarter-over-quarter (QoQ). Net absorption remained positive for a second consecutive quarter at 228,000 square feet (sq. ft.), following 115,000 sq. ft. in Q2 2026, bringing year-to-date (YTD) net absorption to 27,000 sq. ft. Vacancy fell 50 basis points (bps) from 27.0% to 26.5%, while availability declined 10 bps to 29.8%. Leasing demand stayed healthy, with tenants signing 960,000 sq. ft., down slightly from 974,000 sq. ft. in Q2. The average asking rent was virtually unchanged QoQ at $32.54 per sq. ft. full-service gross (FSG), but down 1.5% year-over-year (YoY).

From Q3 2021 through Q3 2026, the market experienced a prolonged occupancy contraction before recent stabilization. Vacancy increased from 18.4% to 26.5%, while availability rose from 21.4% to 29.8%. Every quarter from Q3 2021 through Q1 2026 posted negative net absorption, ranging from 17,000 sq. ft. in Q2 2024 to 526,000 sq. ft. in Q3 2021, before turning positive in 2026. Black & Veatch signed the quarter’s largest transaction with a 33,000 sq. ft. new lease at 4949 Meadows Road in the Kruse Way submarket. The largest sale transaction of Q3 was the sale of Park Avenue West in the CBD, totaling 193,914 sq. ft. and trading for $35.4 million ($182.55 per sq. ft.).