Leasing activity plunges to 641K SQFT while sales rebound on steep discounts

Portland’s office market continues to struggle with fundamental demand challenges, as remote work patterns and economic headwinds reshape the commercial real estate landscape. According to Kidder Mathews’ Q3 office market report for the city, the third quarter of 2025 marked another milestone in the market’s decline, with direct vacancy climbing to 15.2 percent—a 160-basis-point increase from the previous quarter and a new record high for the metro area. The vacancy surge represents the twelfth consecutive quarter of rising availability, with downtown Portland accounting for more than half of all vacant space.

“Leasing trends continue to reflect broader economic uncertainty, influenced by factors such as workfor

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