q3 2026 portland office market report

Q3 2026 Portland Office Market Summary

Portland office vacancy edged down in Q3. Occupiers still hold the leverage, especially downtown.

Market snapshot

• Vacancy: 16.1% (16.3% last quarter, 16.4% a year ago)
• Vacant space: down about 255,000 SF
• Availability: 17.8% (18.3% a year ago)
• Sublease space: about 1.8 million SF (2.1 million SF a year ago)
• Blended asking rent: $29.00/SF (down from $30.06 a year ago)
• Class A asking rent: $34.56/SF (down from $36.47)

Submarkets

• I-5 Corridor: Vacancy fell from 17.3% to 16.0%, the biggest improvement.
• Southeast: Vacancy tightened to 10.5%.
• Kruse Way: Black & Veatch signed a new 30,921 SF lease. Milestone Systems and Buckley Law renewed.
• Hillsboro: ASML renewed nearly 63,000 SF across two buildings.
• Downtown (CBD): Vacancy held at 29.5%. Availability rose to 31.4%. Occupiers on the move favor buildings with parking and easy freeway access.

Construction

• The pipeline grew to about 373,000 SF, mostly in Southeast Portland (Kaiser’s Sunnyside Campus).
• About 90% is preleased.
• The pipeline is under 1% of inventory, so no supply wave is coming.

Outlook

• The market is stable and slightly better, but not fixed.
• Expect slow, uneven progress into 2027.