Portland Commercial Office Space for Rent

Q3 2026

Q3 2026 Portland Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Portland's office market posted its second straight quarter of positive absorption in Q3 2026, with 228,000 SF absorbed and vacancy down 50 basis points to 26.5%. Industrial vacancy held at 7.7% with 3.3 million SF under construction, and apartment occupancy reached 95.3%. Tenant demand on TenantBase shifted toward office in Q3: office space accounted for 46.9% of all Portland tenant searches, about four times its 11.0% share in Q2, now nearly even with retail at 51.0%.

Sector Snapshot

  • Office: Turning the corner. Back-to-back positive absorption quarters after years of losses.
  • Industrial: Balanced. Vacancy was 7.7%, with asking rent at $0.97/SF per month NNN.
  • Retail: Stable. Availability held at 4.9% in Q2.
  • Multifamily: Tightening. Occupancy rose to 95.3% as deliveries slowed.

Portland Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Portland metro, including Vancouver, Washington, are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

  • Retail/Storefront: 51.0%
  • Office: 46.9%
  • Warehouse/Industrial: 2.0%

Three-Quarter Trend

  • Retail/Storefront: 49.3% in Q1, 54.4% in Q2, 51.0% in Q3
  • Office: 9.1% in Q1, 11.0% in Q2, 46.9% in Q3
  • Warehouse/Industrial: 41.6% in Q1, 36.0% in Q2, 2.0% in Q3

Key Takeaways

  • Office demand roughly quadrupled, from 11.0% to 46.9% of Portland searches.
  • Office tenants are planning longer. 2 to 3 year terms rose from 4.5% of office searches in Q2 to 17.4% in Q3.
  • Short-term retail demand rose. 31.8% of Q3 retail searches sought terms under one year, up from 13.8% in Q2.
  • The west side leads location interest. Beaverton was the most requested area, followed by Hillsboro, the Central Eastside, Downtown, the Pearl District, the Airport area, Barbur Boulevard, and Clackamas.

Office Market

Key Metrics (Q3 2026)

  • Vacancy: 26.5%, down 50 basis points from Q2 (CBRE)
  • Net absorption: positive 228,000 SF in Q3, after positive 115,000 SF in Q2 (CBRE)
  • Leasing: 960,000 SF (CBRE)
  • Average asking rent: $32.54/SF full service, down 1.5% year over year (CBRE)
  • Submarkets (Q2): Beaverton at 9.1%, Vancouver at 11.0%, Sunset Corridor at 18.5%, Lake Oswego/Kruse Way at 19.8%, Lloyd District at 27.1%, Close-in Northwest at 31.1%, and the CBD at 32.5% (Cushman & Wakefield)
  • Notable activity: Black & Veatch leased 33,000 SF at 4949 Meadows Rd, and Park Avenue West sold for $35.4 million (CBRE)

TenantBase Office Activity

Demand share: 46.9% of Portland tenant searches, up from 11.0% in Q2 and 9.1% in Q1.

Lease term preferences:

  • Less than one year: 52.2%
  • 3 to 5 years: 26.1%
  • 2 to 3 years: 17.4%
  • 1 to 2 years: 4.3%

Space requirements by term:

  • Less than one year: 1,083 to 2,417 SF
  • 1 to 3 years: 500 to 2,000 SF
  • 3 to 5 years: 2,900 to 5,900 SF

TenantBase data vs. the market: Beaverton, the most searched area on TenantBase, is also Portland's tightest office submarket at 9.1% vacancy, so tenants there should start early. Tenants open to Downtown or the Pearl District, where vacancy runs above 30%, will find far more options and strong negotiating leverage.

Industrial & Warehouse Market

Key Metrics (Q3 2026)

  • Vacancy: 7.7%, up 10 basis points from Q2 (CBRE)
  • Net absorption: positive 109,000 SF (CBRE)
  • Average asking rent: $0.97/SF per month NNN (CBRE)
  • Under construction: 3.3 million SF across 10 projects (CBRE)
  • Notable lease: Javelin Logistics, 99,000 SF at 138 Logistics Center (CBRE)

TenantBase Industrial Activity

Demand share: 2.0% of Portland tenant searches, down from 36.0% in Q2 and 41.6% in Q1.

Space requirements: Q3 industrial searches sought 3 to 5 year terms at 2,500 to 10,000 SF.

TenantBase data vs. the market: With vacancy well above the 2.2% low of late 2022 and rents below their 2023 peak, small industrial users have more options and negotiating room.

Retail Market

Key Metrics (Q2 2026)

  • Availability: 4.9%, flat from Q1 (CBRE)
  • Average asking rent: $23.78/SF NNN, with Downtown and NW 23rd up to $55.00/SF (CBRE)
  • Notable lease: AutoZone, 60,323 SF at Vancouver Plaza (CBRE)

TenantBase Retail Activity

Demand share: 51.0% of Portland tenant searches, down from 54.4% in Q2.

Lease term preferences:

  • Less than one year: 31.8%
  • 3 to 5 years: 27.3%
  • 2 to 3 years: 22.7%
  • 5+ years: 18.2%

Space requirements by term:

  • 2 to 3 years: 750 to 1,750 SF
  • 5+ years: 6,250 to 12,500 SF

TenantBase data vs. the market: Portland retail demand on TenantBase splits between small short-term storefronts and larger 5+ year users. Suburban centers offer lower rents than prime urban corridors.

Multifamily Market

Portland apartment occupancy rose to 95.3% in Q2 2026, with average rent at $1,750, according to CBRE. Net absorption of 1,997 units more than doubled deliveries of 928 units.

Q4 2026 Outlook

  • Office: Expect gradual improvement as suburban submarkets lead and Downtown offers tenant leverage.
  • Industrial: Expect vacancy near 8% as new projects deliver.
  • Retail: Expect availability near 5%.
  • Multifamily: Expect occupancy to firm as deliveries slow.

Frequently Asked Questions

What type of commercial space are Portland tenants searching for in 2026?

In Q3 2026, retail/storefront space made up 51.0% of Portland tenant searches on TenantBase and office made up 46.9%. Office share rose from 11.0% in Q2.

Which Portland areas are tenants searching most?

Beaverton was the most requested area on TenantBase in Q3 2026, followed by Hillsboro, the Central Eastside, Downtown, and the Pearl District.

What is the office vacancy rate in Portland?

Portland office vacancy was 26.5% in Q3 2026, down 50 basis points from Q2, according to CBRE.

What is the industrial vacancy rate in Portland?

Portland industrial vacancy was 7.7% in Q3 2026, according to CBRE.

How can I find commercial space in Portland at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Portland metro at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

  1. TenantBase proprietary search data, Portland, July 1 to September 30, 2026
  2. TenantBase, Portland Commercial Real Estate Market Report, Q2 2026
  3. TenantBase, Portland Commercial Real Estate Market Report, Q1 2026
  4. CBRE, Portland Office Figures, Q3 2026
  5. Cushman & Wakefield, Portland Office MarketBeat, Q2 2026
  6. CBRE, Portland Industrial Figures, Q3 2026
  7. CBRE, Portland Retail Figures, Q2 2026
  8. CBRE, Portland Multifamily Figures, Q2 2026

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.