Portland Retail Market Report

The following reflects Portland retail market conditions as of 3Q 2026.

The Portland retail market in 3Q 2026 experienced rising vacancy, falling rental rates, and declining construction deliveries, alongside a year-over-year decline in unemployment. Explore our full Portland retail market report for deeper insights into leasing activity, investment trends, and submarket performance.

Frequently Asked Questions

What is the vacancy rate for Portland retail in 3Q 2026?

The Portland retail vacancy rate was 4.6% in 3Q 2026, unchanged from 4.6% in 2Q 2026 but up 30 basis points from 4.3% a year earlier in 3Q 2025, according to Kidder Mathews research. The slight year-over-year increase reflects modest softening in retail space demand across the metro.

What are average asking rents for Portland retail space in 3Q 2026?

Average asking rents for Portland retail space were $1.96 per square foot per year in 3Q 2026, down slightly from $1.98 in 2Q 2026 and down 0.72% from $1.97 in 3Q 2025 (Data source: CoStar). Rents have remained relatively stable despite broader market softening.

How much retail leasing activity occurred in Portland during 3Q 2026?

The largest lease signed during 3Q 2026 was at Gresham Square in the Gresham submarket, where Gresham Cinema & Wunderland leased 16,707 square feet in August 2026, according to Kidder Mathews research. Other notable leases included O’Reilly Auto Parts at Raleigh West Shopping Center in Sylvan/Hillsdale (8,878 SF) and La Pulga Market at Gresham Plaza in Gresham (7,780 SF).

What was net absorption for Portland retail in 3Q 2026?

Net absorption for Portland retail space totaled a positive 61,603 square feet in 3Q 2026, meaning tenants occupied significantly more space than they vacated during the quarter (Data source: CoStar). Year-to-date net absorption reached 85,897 square feet, a marked improvement over negative 2,140 square feet absorbed during the same period in 2025.

How much retail space is under construction in Portland?

There were 67,332 square feet of retail space under construction in Portland as of 3Q 2026, down 86.62% from 503,278 square feet a year earlier in 3Q 2025, according to Kidder Mathews research. Active projects include Goodwill – Ridgefield (24,000 SF) and Royal Ridge Station (16,902 SF), both in the Clark County Outlying submarket.

How much retail space was delivered in Portland during 3Q 2026?

Portland retail construction deliveries totaled 9,729 square feet in 3Q 2026. Year-to-date deliveries reached 251,275 square feet, down 34.97% from 386,386 square feet delivered over the same period in 2025, according to Kidder Mathews research.

What was the largest retail sale transaction in Portland in 3Q 2026?

The largest sale transaction was Cascade Boulevard Center in Tigard, a 50,122-square-foot property that sold for $13,422,998, or $267.81 per square foot, with Manjoh, LLC acquiring the asset from RAM/Cascade Ctr LLC, according to Kidder Mathews research.

What is the average cap rate and sale price for Portland retail properties?

The average cap rate for Portland retail properties was 6.2% in 3Q 2026, down 560 basis points from 11.8% in 3Q 2025, while the average sale price fell to $247 per square foot, down 33.70% year-over-year from $372 (Data source: CoStar). The combination of compressing cap rates and declining per-square-foot pricing points to evolving investor valuation dynamics in the market.

What was the largest retail lease signed in Portland in 3Q 2026?

The largest lease transaction was at Gresham Square in the Gresham submarket, where Gresham Cinema & Wunderland signed for 16,707 square feet in August 2026, according to Kidder Mathews research.

What is the outlook for the Portland retail market?

The Portland retail market is showing early signs of stabilization, with new construction activity pulling back sharply even as positive net absorption of 61,603 square feet in 3Q 2026 points to steady tenant demand, according to Kidder Mathews research. Limited new supply paired with improving absorption trends suggests vacancy could level off in coming quarters. Explore our full Portland retail market report for deeper insights.

Last updated: 3Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

3Q 2026 Portland Retail Market: Key Data Points

Explore our full Portland retail market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy Rate: The Portland retail vacancy rate held at 4.6% in 3Q 2026, up 30 basis points year-over-year from 4.3% in 3Q 2025.
• Average Asking Rents: Asking rents averaged $1.96 per square foot per year in 3Q 2026, down 0.72% from $1.97 a year earlier.
• Construction Pipeline: Retail space under construction fell to 67,332 SF, an 86.62% decline from 503,278 SF in 3Q 2025.
• Net Absorption: Net absorption totaled 61,603 SF in 3Q 2026, bringing year-to-date absorption to 85,897 SF, compared to negative 2,140 SF over the same period in 2025.
• Investment Activity: The average sale price fell to $247/SF, down 33.70% year-over-year, while the average cap rate compressed to 6.2%, down 560 basis points from 11.8% in 3Q 2025.
• Largest Sale: Cascade Boulevard Center in Tigard sold for $13,422,998 ($267.81/SF) to Manjoh, LLC, the quarter’s largest transaction.
• Largest Lease: Gresham Cinema & Wunderland signed for 16,707 SF at Gresham Square, the quarter’s top lease transaction.

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions 3Q 2026

Significant Lease Transactions 3Q 2026

Significant Under Construction