Q1 2026 Portland Industrial Figures Report

Industrial market activity strengthened in Q1 2026, led by a pickup in leasing momentum despite continued supply-side pressure. Total leasing volume reached 2.2 million square feet (sq. ft.), marking solid quarter-over-quarter (QoQ) and year-over-year (YoY) growth, with demand concentrated in large-format logistics facilities. Notable transactions included a 1.2 million square foot new lease at Mid I-5 Industrial Park in Cowlitz County, as well as renewals by Celestica and UPS Supply Chain Solutions, underscoring occupier commitment to established distribution corridors in the Portland metro area. There is approximately 3.0 million sq. ft. of active tenant requirements being tracked. However, market fundamentals remain in transition. Vacancy rose to 7.6%, driven by recent deliveries and elevated sublease availability. Construction and investment trends point to cautious optimism tempered by macroeconomic uncertainty. Development activity remains elevated, with 3.1 million sq. ft. under construction. While asking rents showed mixed performance, constrained availability in certain submarkets continues to support pricing. On the investment side, industrial sales totaled approximately $170 million, with stable values near $170 per square foot driven by a handful of notable transactions.