Q1 2022 - Portland Office Market Report

Portland office demand remains shaky as the hybrid office trend continues to unfold. Overall
leasing activity has picked up significantly and amounted to 4,516,870 SF leased over the last
four quarters, a 52% increase from the previous four quarters (2,980,013 SF). There have
also been some notable leases signed across the market, including ZoomInfo (~366,000 SF)
in Vancouver, TriMet (~95,000 SF) in CBD, and Apple (~50,000 SF) in Beaverton. However,
the heavy leasing activity in Portland stands in contrast to space returned to the market as
companies shrink their office footprints with net absorption at 575,931 SF year-over-year. To
further illustrate the available space in the market, at the end of the quarter, there was a 15.9%
availability rate, compared to 14.6% in Q1 2021 and 10.4% in Q1 2020. That’s an increase of
5.8 million SF since Q1 2020 (54.7% increase). This notable change in supply has led to the first
significant downward trend in rental rates since the 2008 recession.

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