Q2 2021 - Portland Office market report

Portland Metro Overview

There have been many story lines in the commercial office market over the last 18 months. The predominant issue is how the “remote work” trend will impact the office market, and based on available data, it is proving to be very challenging for the office market landlords. This is not just a downtown issue, which has dealt with a variety of issues including the remote work trend, but it is visible across the entire Portland Metro as well. Availability rates are at an all-time high across the market (15%) a 38% increase from Q2 2020 and expected to increase as long-term leases begin continuing to expire. The suburban markets have benefited from a renewed interest by otherwise focused downtown tenants and gross rents have surpassed the CBD for the first time, some notable moves include KinderCare to Lake Oswego along with Apple & Microsoft moving to Hillsboro. However, this picture is not quite what it seems as the availability in the markets still remains very high and will likely continue.

For questions about this market report, please contact Sean Connors at sconnors@cresa.com