Portland Office Figures Report Q4 2025

In 2025, the office market navigated a period of adjustment marked by softer demand, recalibrated valuations, and selective signs of stabilization. Leasing activity totaled 2.6 million square feet (sq. ft.) for the year, down approximately 12% from 2024, as professional services firms remained the primary drivers of demand. Market fundamentals weakened modestly, pushing overall vacancy to 27.3% and year-to-date (YTD) net absorption to negative 1.27 million sq. ft. Sublease availability declined to 1.84 million sq. ft., a 7.5% year-over-year (YoY) decrease, signaling some easing in secondary supply.

Investment activity remained subdued as asset values largely reset, with total sales volume reaching approximately $313 million in 2025. Transactions throughout the year reflected repriced valuation benchmarks, while leasing economics underscored a competitive environment. Average direct asking rents held relatively steady at $32.95 per sq. ft. on a full-service gross (FSG) basis, with Class A properties commanding higher rates, though landlords continued to offer substantial concessions to attract tenants.