The Portland retail market in Q4 2025 experienced modest rent growth despite rising vacancies and continued negative absorption. Construction activity slowed significantly compared to last year, while sales pricing surged, reflecting strong investor interest. Explore our full Portland retail market review for detailed trends and transaction insights.
4Q 2025 Portland Retail Market: Key Data Points
- Vacancy Rate Edges Up: Vacancy increased to 4.5%, up 60 basis points year-over-year.
- Asking Rents Rise: Average asking rent reached $2.01 per SF per year, a 6.4% increase from Q4 2024.
- Construction Pipeline Contracts: Space under construction fell to 272,507 SF, down 49.4% year-over-year.
- Sales Pricing Jumps: Average sales price climbed to $306 per SF, a 118.7% increase compared to last year.
- Cap Rates Expand: Average cap rate rose to 7.5%, up 100 basis points year-over-year.
- Net Absorption Remains Negative: Q4 absorption totaled -115,353 SF, continuing the trend of negative demand.
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