Portland Industrial Vacancy Rises to 5.7% as Leasing Activity Falls 23%

Net absorption turns positive at 153,000 SQFT despite rising availability reaching 15-year high

Portland’s industrial real estate market is experiencing a notable shift as economic uncertainty reshapes tenant behavior and investment patterns across the region. Direct vacancy rose to 5.7 percent in the third quarter—a 13-year high and 110 basis points above year-ago levels—while total leasing activity dropped 23 percent year-over-year to 6.1 million square feet year-to-date, according to Kidder Mathews’ recently released Q3 industrial market report for the city. The market posted 153,000 square feet of net absorption in Q3, reversing prior negative trends, though availability rates climbed to 10 percent, a 15-year record high.

“Leasing activity in the past year has averaged less than 2 mi