Q1 2026 Portland Office Figures

The Portland office market continued its rebalancing trend in the first quarter. Following 1.3 million square feet (sq. ft.) of negative net absorption in 2025, the market recorded an additional 316,395 sq. ft. of negative net absorption during the first quarter, signaling ongoing space rationalization by occupiers. Some market fundamentals did show early signs of stabilization in the first quarter. Overall vacancy declined to 27.1%, a 20-basis-point (bps) decrease quarter-over-quarter (QoQ), and sublease availability decreased to 1.7 million sq. ft.

Leasing activity totaled 585,366 sq. ft. in Q1 2026, inclusive of new leases and renewals, and remained relatively flat compared to the same period one year ago. The two largest new lease transactions of the quarter occurred in Vancouver, highlighted by Southland Industries’ 26,000 sq. ft. lease at Terminal 1. Investment activity remains muted, though momentum is beginning to emerge. In Q1 2026, Portland General Electric acquired Mohawk Business Park from The Khoshibin Company for $14.5 million, or $114 per sq. ft. The transaction involved a three-building suburban office campus and was among the quarter’s notable sales.