Portland Industrial Figures Q1 2025

Amid ongoing discussions about the potential impact of evolving trade policies on real estate market dynamics, Portland has been anticipating a shift after a period of market contraction. In response to the expectation of new tariffs, some shipping companies have moved cargo forward, though the full effect of this strategy on overall activity in Portland remains uncertain.

While the market recorded approximately 1.0 million square feet (sq. ft.) of positive net absorption in the first quarter, the overall vacancy rate remained relatively flat at 6.1%. This stability can be attributed to an influx of new vacant sublease spaces and the completion of a few speculative construction projects that were delivered unoccupied. The strong positive absorption in the first quarter follows six consecutive quarters of negative net absorption and can be partly attributed to robust activity within the Food and Beverage sector. Notably, Grocery Outlet, after consolidating its operations, has taken occupancy of a new 681,780 sq.-ft. class A space at Burnt Creek Industrial Park in Clark County. Furthermore, both Gourmet Foods and Tilray executed leases for spaces exceeding 100,000 sq. ft., with their terms beginning in the first quarter.

In the industrial capital markets, sales volume remained subdued during the first quarter, largely due to limited activity among core groups. Nevertheless, the Portland metro area’s more measured market environment—especially in comparison to some of its West Coast counterparts—continues to present a favorable outlook for investors seeking lower risk and long-term growth opportunities.