Q4 2025 Portland Industrial Market: What Moved, What Matters
The Q4 tape shows a market still digesting: overall vacancy in Portland ended at 7.3%, with –793,471 SF of net absorption for the quarter. Flex vacancy climbed to 8.8% (from 6.9% in Q3), warehouse to 8.4% (from 7.7%), while specialized held near 3.5%. Average asking rent closed at $11.93/SF, essentially flat quarter-over-quarter.
Supply: Tapering Starts, Manageable Pipeline
Roughly 4.26 MSF remains under construction—about 1.5% of inventory—versus a 1.4% U.S. average. About 50% of what’s underway is still available. Groundbreakings were down 60% from the 10-year quarterly average, the slowest pace in two years, helping the region keep availability at 9.6% (vs 9.7% nationally). Q4 delivered 910,694 SF.
Near-Term Deliveries to Watch
Early 2026 brings a Class A project on SW Oregon St. in Sherwood (358,555 SF, March) and a warehouse on NE 15th St. in Vancouver (120,000 SF, February). With vacancies drifting higher and large occupiers more cautious, rent growth is likely to stay muted into mid-to-late 2026.
What this means for owners
Positioning over price first: With negative absorption and steady rent prints, focus on frictionless occupancy—clear specs, flexible TI pathways, and readiness for quick tours.
Use the lull to reset: Fewer starts tighten the medium-term outlook; locking credit and rolling vacancy now can front-run a supply squeeze later.
What this means for occupiers
More choice, cleaner comps: Rising vacancy = better leverage on renewal options, license use of yard/parking, and possession timing.
Watch the pipeline: Track Q1–Q2 deliveries in Sherwood and Vancouver for “first-mover” incentives and modern spec features.
For submarket-specific guidance or a quick benchmark, connect with us —we’ll map a Best-Price Strategy & Roadmap to your timeline and risk profile.