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Kidder Mathews: Office Struggles Persist as Portland Leasing Sets Record Low

Report: Portland Office Leasing Sets Record Low

A new report from Kidder Mathews highlights the continuing struggles of the office sector, with the Portland, OR market posting record-low leasing activity in the 4th quarter of 2022. Just 574,000 square feet was leased in the Portland metro, down 35% year-over-year and direct vacancy rates have climbed to 11.1%

Meanwhile, sublease availability has jumped to a record high of 2.36 million square feet as companies shrink their office footprints thanks to hybrid work options. Asking lease rates are reflecting the demand issue, falling 0.12 in Q4 to $28.32-per-square-foot. Not surprisingly, 4th quarter sales activity dropped to 474,000 square feet, a 10-year low.

Kidder’s outlook for Portland in 2023 remains shaky, as the negative impacts of the pandemic persist. The combination of a market flooded with sublet offerings mixed with high-profile deliveries may result in rent decreases in the coming quarters.


Inside The Story

Kidder Mathews Portland

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

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