The Portland Commercial Real Estate Market

Key Takeaways

• As of October 2025, the Portland–Vancouver–Hillsboro metro is home to more than 2.5 million residents and continues to benefit from strong long-term fundamentals, including high quality of life, regional connectivity, and incomes roughly 10 percent above statewide averages. The cost of living remains significantly lower than other major West Coast hubs.
• The regional economy has expanded to over $218 billion in GDP after growing 59 percent over the past decade, supported by leading industries in apparel, electronics, clean technology, bioscience, and software. Nearly 55 percent of residents hold a bachelor’s or postgraduate degree, one of the highest education rates on the West Coast.
• Industrial real estate remains one of Portland’s strongest sectors, with 233.2 million square feet of inventory, a 5.6 percent vacancy rate, and more than 1.4 million square feet of year-to-date absorption as of Q2 2025. Median asking rents are holding around $17 per square foot annually, supported by healthy demand in Hillsboro, East Columbia, Clackamas, and Airport Way.
• Office and retail conditions are stabilizing, with office vacancy at 23.1 percent on 59.5 million square feet of inventory and retail vacancy at only 4.9 percent across 47.6 million square feet. Suburban office nodes like Kruse Way and the Sunset Corridor are seeing renewed interest, while neighborhood retail continues to outperform with consistent tenant demand.
• Multifamily fundamentals remain solid heading into late 2025, with vacancy at 4.4 percent, average effective rents at $1,768 per month, and more than 2,800 units under construction. Year-to-date absorption and notable property trades point to returning investor confidence across the metro’s core submarkets.

Portland’s commercial real estate market is defined by creativity, sustainability, and a steady sense of growth that mirrors the city itself. Known for its blend of local innovation and global influence, the metro attracts investors, entrepreneurs, and tenants seeking opportunity in one of the Pacific Northwest’s most livable cities. 

From downtown mixed-use projects to suburban industrial hubs, Crexi connects these professionals to Portland’s diverse CRE landscape through a platform designed to simplify every step of the transaction process. Brokers rely on Crexi’s listing, lead management, and marketing tools to reach qualified buyers faster and manage deals efficiently. 

Nationwide, Crexi has powered over $615 billion in closed transactions and marketed more than $7 trillion in total property value. Crexi proudly supports Portland, Beaverton, Tigard, Gresham, Lake Oswego, and surrounding communities as the nation’s fastest-growing digital commercial real estate marketplace.

Portland Commercial Real Estate Market Overview

Portland sits at the center of Oregon’s economic and cultural life, where mountain views meet a thriving mix of urban neighborhoods and sustainable growth. As the largest city in the state, it anchors a metro area that stretches across both sides of the Columbia River, blending access to nature with a strong sense of community and creativity. 

The region’s economy is shaped by sectors like advanced manufacturing, clean technology, and footwear and apparel, anchored by major employers such as Nike and Intel. Together, these industries have helped make Portland a destination for established companies and emerging ventures alike.

Today, Portland’s commercial real estate market is working through a period of recalibration. After a few challenging years marked by high interest rates and evolving office use, the city is gradually stabilizing across most asset types. Development has become more selective, investor confidence is returning in pockets, and leasing activity is beginning to show modest signs of life. Though the pace of growth has slowed, Portland’s long-term fundamentals - its quality of life, regional connectivity, and growing emphasis on sustainable development - continue to support a strong foundation for the years ahead.

Portland Regional Context

The Portland metro area has witnessed significant population growth over the past decade, driven by high quality of life, robust job market, and strategic location along major transportation corridors.

• Portland is the county seat of Multnomah County and the largest city in Oregon, home to over 630,000.
• Metropolitan Portland comprises Multhoman, Washington, and Clackamas counties.
• The population of the Portland-Vancouver-Hillsboro metro area is more than 2.5 million.
• The median age is 39.4, which is about the same figure as the US, based on data from CensusReporter.org.
• The per capita income is $55,745, and the median household income is $86,057, about 10% higher than the overall figure in the state.
• Although the cost of living in Oregon is about 17% higher than the national average, it is significantly more affordable than other major metropolitan areas in the Western U.S., such as Los Angeles, San Francisco, and Seattle. 

Portland Job Market

Portland’s economy is defined by creativity, technical expertise, and a deep connection to its regional industries. The metro’s workforce is anchored by leaders like Nike, Intel, and Providence Health & Services, names that help drive innovation in apparel, technology, and healthcare. Beyond these heavyweights, Portland’s “Silicon Forest” continues to grow through startups in software, climate tech, and advanced manufacturing, supported by a highly educated population and more than 60 nearby colleges and universities.

Recent shifts in employment have brought both challenges and opportunity. Infrastructure remains a key strength, with well-connected highways, ports, and one of the top-ranked airport systems in the nation. Overall, Portland boasts long-term appeal as a place where business, talent, and quality of life intersect.

• Total Gross Domestic Product for Portland-Vancouver-Hillsboro MSA is more than $218 billion, growing by 59% over the past ten years.
• Greater Portland's top industries are apparel and outdoor, bioscience, climate tech, computers and electronics, design and media, food and beverage, metals and machinery, and software.
• Portland is ranked by WalletHub as one of the best metro areas for STEM professionals, based on factors such as job openings, share of workforce in STEM, and share of job postings in tech.
• The Greater Portland area was named the number one West Coast metro area for affordable commercial real estate, according to GPI Research. 
• Portland is home to more than 60 colleges and universities within a 100 mile-radius, including prominent institutions such as Portland State University, known for its urban research programs; the University of Portland, a private Catholic university; and Reed College, renowned for its rigorous liberal arts curriculum.
• Nearly 55% of Portland residents have a bachelor's or postgraduate degree, a rate that is about 1.5 times higher than the Oregon figure overall.
• The metro area's unemployment rate is 5.3% (August 2025), though the leisure/hospitality and healthcare/social assistance sectors did see job growth.
• The top 5 major employers in Portland are Providence Health & Services, Intel, Oregon Health & Science University, Nike, and Legacy Health, according to GreaterPortlandInc.com.
• The Downtown Business Incentive credit program, administered by the city of Portland, is a $25 million temporary nonrefundable tax credit designed to encourage commercial lease signings and renewals.
• Portland boasts a well-developed transportation infrastructure, including Interstates 5 and 84, the Port of Portland, and Portland International Airport (PDX). 
• Oregon is ranked fifth for infrastructure in the U.S., excelling in transit and roads, energy, and broadband. More than half a million residents have commutes of 25 minutes of less, highlighting the connectivity of the region. 

Portland Industrial Market

Portland’s industrial market remains one of the metro’s most stable and sought-after sectors, supported by consistent leasing activity and a diverse mix of occupiers. Logistics, manufacturing, and e-commerce users continue to drive demand, even as new deliveries temporarily outpace absorption. Much of the recent movement has centered around established submarkets like Hillsboro and East Columbia, where access to highways and labor pools gives tenants room to expand.

While vacancy has ticked up slightly due to the volume of new space hitting the market, overall fundamentals remain healthy. Rents are holding steady, and developers are taking a more measured approach to construction, helping bring the market into better balance.

Market overview (Cushman & Wakefield Portland Industrial MarketBeat Q2 2025) 

• Inventory: 233,188,051 SF
• Vacancy rate: 5.6%
• Under construction: 1,205,552 SF
• Deliveries: 1,848,072 SF
• Net absorption: 1,412,087 SF (YTD)
• Leasing activity: 3,047,431 SF (YTD)
• Key leases by tenant: American Beverage Crafts (100,000 SF), Undisclosed tenant (61,028 SF), Beynon Sports (30,854 SF)
• Largest submarkets: East Columbia, Hillsboro/Sunset Corridor, Clackamas/Milwaukie, Airport Way

Crexi Insights

These are the most recent Portland industrial lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

• Asking rate/SqFt (median): $17 per year
• Median SqFt/listing: 5,045
• Days on market: 296
• Total listings on Crexi: 209 spaces

For Sale (active)

• Median asking price: $1.8 million
• Price/SqFt: $239
• Asking cap rate: 6.6%
• Days on market: 169
• Total listings on Crexi: 81

Sales Comps (past 12 months)

• Median sold price: $1.5 million
• Sold price/SqFt: $184
• Total sales volume: $245.7 million
• Median SqFt sold/transaction: 6,215
• Total SqFt sold: 1.9 million 
• Days on market (median): 362

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Portland Office Market

The Portland office market continues to evolve as businesses refine how they use space and where they want to be. While vacancy remains elevated, leasing activity shows that demand hasn’t disappeared - just shifted. Many companies are gravitating toward modern, well-located buildings that support flexible work models and reflect the city’s collaborative, creative spirit.

Suburban submarkets like Kruse Way and the Sunset Corridor are seeing renewed interest from tenants seeking accessibility and value, while downtown continues its gradual recovery. Landlords are adapting by reimagining older spaces, offering more amenities, and focusing on quality over quantity. The result is a market in transition, one that’s finding its balance as Portland’s business landscape adjusts to new expectations for how and where work happens.

Market overview (Cushman & Wakefield Portland Office MarketBeat Q2 2025)

• Inventory: 59,469,636 SF
• Vacancy rate: 23.1%
• Net absorption: -993,268 SF (YTD)
• Leasing activity: 841,077 SF (YTD)
• Under construction: 190,000 SF
• Key lease transactions by tenant: Trend Capital (41,197 SF), Aerotek (26,602 SF), Undisclosed tenant (20,544 SF)
• Largest submarkets: Central Business District, Sunset Corridor, Lake Oswego/Kruse Way

Crexi Insights

These are the most recent lease and sales trends for the Portland office market, provided by Crexi Insights (as of October 2025)::

For Lease (active)

• Asking rate/SqFt (median): $22 per year
• Median SqFt/listing: 1,944 SF
• Days on market: 209
• Total listings on Crexi: 662 spaces

For Sale (active)

• Median asking price: $1.5 million
• Price/SqFt: $249 
• Asking cap rate: 7%
• Days on market: 175
• Total listings on Crexi: 119

Sales Comps (past 12 months) 

• Median sold price: $1.2 million
• Sold price/SqFt: $249
• Total sales volume: $56.7 million
• Sold cap rate: 6.9%
• Median SqFt sold/transaction: 4,473 SF
• Days on market (median): 243

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Portland Retail Market

Portland’s retail market has shown quiet strength through 2025, balancing shifting consumer habits with steady tenant demand. Neighborhood centers and suburban corridors continue to perform well, driven by essential retail, dining, and local service users that keep foot traffic consistent. Downtown’s retail scene is also finding its footing again, with renewed leasing activity and creative concepts filling once-vacant storefronts.

Landlords are adapting to today’s environment with flexible leasing terms and thoughtful tenant mixes, helping maintain stability even as economic headwinds persist. The result is a market that’s adjusting rather than retreating, proving that Portland’s retail spaces remain vital parts of the community and a bright spot in the city’s broader recovery.

Market overview (Cushman & Wakefield U.S. National Retail MarketBeat Q2 2025)

• Inventory:  47,601,444 SF
• Vacancy rate: 4.9%
• Under construction: 138,946 SF
• Deliveries: 60,311 SF (YTD)
• Net absorption: -15,993 SF (Q2 2025)

Crexi Insights

Portland retail lease and sales trends from Crexi Insights (as of October 2025):

For Lease (active)

• Asking rate/SqFt (median): $24 per year
• Median SqFt/listing: 1,981 SF
• Days on market: 413
• Total listings on Crexi: 606 spaces

For Sale (active)

• Median asking price: $1.5 million
• Price/SqFt: $279
• Asking cap rate: 6.4%
• Days on market: 177
• Total listings on Crexi: 147 

Sales Comps (past 12 months)

• Median sold price: $9.5 million * due to a high-price outlier
• Sold price/SqFt: $40,300
• Total sales volume: $656.6 million
• Sold cap rate: 8.3%
• Median SqFt sold/transaction: 236 SF
• Days on market (median): 194

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Portland Multifamily Market

After a period of slowed construction and cautious investment, Portland’s multifamily market is showing healthy signs of renewal. Strong absorption and steady rent growth point to rising renter confidence, even as new deliveries trail demand. Activity is picking up across key submarkets like Central and East Portland, where proximity to jobs, transit, and lifestyle amenities continues to draw residents.

Investor confidence is also making a comeback, with several notable property sales underscoring faith in Portland’s long-term stability. While the market still has hurdles to overcome, the city’s livability, talent base, and consistent housing demand continue to make multifamily one of the region’s most dependable investment plays heading into the latter half of 2025.

Market overview (Colliers Portland Metro Multifamily Market Report Q2 2025)

• Total housing units: 1,077,557
• Multi-unit inventory: 247,388 units
• Vacancy rate: 4.4%
• Average effective rent: $1,768
• Deliveries: 853 (Q2 2025)
• Net absorption: 2,340 
• Under construction: 2,807 units
• Notable sales by property: Peloton Apartments (265 units; $88 million); Ansley Murray Hill (304 units; $76.7 million); Merrill Gardens (198 units; $115 million)
• Largest submarkets: East Portland, Vancouver, Central Portland

Crexi Insights

Here are the most recent insights on the Portland multifamily market from Crexi (as of October 2025):

For Sale (active)

• Median asking price: $2.1 million
• Price/SqFt: $270
• Price/Unit: $202,600
• Asking cap rate: 5.8%
• Days on market: 141
• Total listings on Crexi: 122

Sales Comps (past 12 months)

• Median sold price: $418,100
• Sold price/SqFt: $322
• Sold price/unit: $354,700
• Total sales volume: $734.2 million
• Sold cap rate: 6%
• Total SqFt sold: 3.3 million
• Days on market (median): 184

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Get more in-depth Portland market data with Crexi Intelligence.