Portland Retail Market Report

The following reflects Portland retail market conditions as of 2Q 2026.

The Portland retail market in 2Q 2026 remains fundamentally healthy, with asking rents continuing to rise and vacancy holding below 5%. Investment activity strengthened significantly as sale prices surged year-over-year, while the development pipeline remained relatively steady. Despite limited construction completions, the market recorded positive quarterly absorption, signaling continued tenant demand. Explore our full Portland retail market report for deeper analysis of leasing, investment, and development trends.

Frequently Asked Questions

What is the retail vacancy rate in Portland in 2Q 2026?

Portland’s retail vacancy rate stood at 4.7% in 2Q 2026, according to Kidder Mathews research. That is up 40 basis points from 4.3% in 2Q 2025 but unchanged from 4.7% in 1Q 2026, keeping the market relatively tight by historical standards.

What are average retail asking rents in Portland as of 2Q 2026?

Average retail asking rents in Portland reached $2.02 per square foot per year in 2Q 2026, according to Kidder Mathews research. That figure was unchanged from 1Q 2026 but up 2.66% from $1.97 per square foot in 2Q 2025.

How much retail space is under construction in Portland?

514,643 SF of retail space was under construction in Portland as of 2Q 2026, according to Kidder Mathews research. That total is essentially flat, down 0.82% from 518,924 SF a year earlier, and up slightly from 481,989 SF in 1Q 2026.

What was net absorption for the Portland retail market in 2Q 2026?

Portland retail recorded positive net absorption of 45,624 SF in 2Q 2026, according to Kidder Mathews research. Net absorption measures the net change in occupied space quarter over quarter; the 2Q 2026 gain occurred despite negative year-to-date absorption of -168,050 SF, compared to -131,918 SF over the same period in 2025.

How much retail construction was delivered in Portland in 2026?

Retail construction deliveries in Portland totaled 10,004 SF year-to-date through 2Q 2026, according to Kidder Mathews research. That is a substantial slowdown from 336,419 SF delivered over the same period in 2025, and no new retail space was delivered during 2Q 2026 alone.

What was the largest retail sale transaction in Portland in 2Q 2026?

The largest retail sale in Portland in 2Q 2026 was Paradise Quick Stop in the Clark County Outlying submarket, according to Kidder Mathews research. The 3,460-SF property sold for $13,637,175 ($3,941.38 per square foot), with Cowlitz Economic Authority purchasing the property from Minit Management, LLC.

What was the largest retail lease transaction in Portland in 2Q 2026?

The largest retail lease signed in Portland in 2Q 2026 was Homegoods’ 18,300-SF lease at Gresham Station Shopping Center in the Gresham submarket, according to Kidder Mathews research. The lease was completed in April 2026.

What is the average retail cap rate in Portland in 2Q 2026?

The average retail cap rate in Portland was 6.6% in 2Q 2026, according to Kidder Mathews research. That is down 30 basis points from 6.9% in 2Q 2025 and down from 7.2% in 1Q 2026.

What is the average retail sale price per square foot in Portland?

The average retail sale price in Portland reached $335 per square foot in 2Q 2026, according to Kidder Mathews research. That represents a 92.12% increase from $174 per square foot in 2Q 2025, and is well above the $209 per square foot average recorded in 1Q 2026.

What is the outlook for the Portland retail market in 2026?

The Portland retail market remains fundamentally healthy heading into the second half of 2026, with asking rents continuing to rise and vacancy holding below 5%, according to Kidder Mathews research. Investment activity strengthened significantly as sale prices surged year-over-year, while the development pipeline remained relatively steady and quarterly absorption turned positive.

Last updated: 2Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

2Q 2026 Portland Retail Market: Key Data Points

Explore our full Portland retail market report for deeper analysis of leasing, investment, and development trends.

• Vacancy Rate Remains Below 5%: Portland’s retail vacancy rate measured 4.7% in 2Q 2026, increasing 40 basis points year-over-year while remaining relatively tight by historical standards.
• Asking Rents Continue to Increase: Average asking rents reached $2.02 PSF per year, representing a 2.7% increase year-over-year.
• Development Pipeline Holds Steady: Retail space under construction totaled 514,643 SF, remaining essentially flat compared to one year ago.
• Sale Prices Surge: The average retail sale price climbed to $335 PSF, a 92.1% increase year-over-year, reflecting strong investment demand and higher-value transactions.
• Construction Deliveries Remain Limited: Only 10,004 SF of retail space was delivered year-to-date in 2026, a substantial slowdown from the prior year.
• Quarterly Absorption Turns Positive: Portland recorded 45,624 SF of positive net absorption in 2Q 2026, indicating improving leasing activity despite negative year-to-date absorption of 168,050 SF.

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions 2Q 2026

Significant Lease Transactions 2Q 2026

Significant Under Construction