The Portland retail market in 1Q 2026 reflects softening demand as vacancy edges higher, absorption turns negative, and new construction slows, while asking rents continue to rise year-over-year. With no new deliveries this quarter and a significant amount of space still under construction, the market is navigating a transitional phase shaped by shifting consumer trends and selective retailer expansion. Explore the full 1Q 2026 Portland retail market report for deeper insights into investment activity, leasing patterns, and development momentum.
1Q 2026 Portland Retail Market: Key Data Points
- Vacancy Continues to Rise: Retail vacancy increased to 4.8%, up 70 bps year-over-year.
- Asking Rents Grow: Average asking rent reached $2.01/SF/Yr, a 7.77% increase from 1Q 2025.
- Construction Activity Up Significantly: Space under construction totaled 507,121 SF, a 75.91% YOY increase.
- No New Deliveries: 0 SF of new construction was delivered in 1Q 2026, compared to 316,219 SF one year earlier.
- Absorption Turns Negative: Net absorption fell to –325,521 SF, reflecting weakened tenant demand.
- Sales Pricing Softens: Average retail sale price decreased to $267/SF, a 5.36% YOY decline.
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