Fall 2026 Oregon Healthcare Real Estate Market Report

Q3 2026 Oregon Healthcare Real Estate Market Summary

Leasing is steadying, and occupiers still hold leverage.

Market snapshot

• Vacancy: Portland 7.5%, Central Oregon 3.6%, statewide 6.5%
• Rental rates (FSE): Portland $25-$49/SF, Central Oregon $25-$50/SF, outside Portland Metro $25-$35/SF
• Forecast: no change for rental rates and vacancy in all markets
• Portland leases executed, Q1-Q3 2026: 53 (116K SF), up from 44 over the same period in 2025
• Portland leases increased each quarter this year, from 15 in Q1 to 21 in Q3
• Portland MOB sales: 13 transactions totaling $20.6M, with a median price of $290/SF
• Net absorption was near flat, after a loss of about 193,000 SF a year earlier

What it means for occupiers

• With vacancy at 7.5% and limited new supply, concessions and improvement allowances are where terms are most likely to move.
• Provider finances are tightening, so timing matters. Providers with 2027 or 2028 expirations may benefit from testing the market against renewal offers 12 to 18 months ahead.
• Payment is moving away from hospital-based outpatient sites. Elevance and CMS have each moved to reduce payment for certain off-campus hospital outpatient services, which could favor freestanding physician office and ASC locations over hospital-based space.