Portland's office market continues to struggle through the third quarter of 2022. The three-month period recorded negative net absorption of 340,000 square feet, bringing the year-to-date net absorption total to -1.01 million square feet. The quarter end marks 11 straight quarters of net negative absorption, a trend which began in Q1 2020. Market-wide vacancy rates increased 30 basis points from the previous quarter, resulting in a 6.8% year-on-year increase compared to Q3 2021. Tracking with the larger market, vacancy in the CBD jumped 60 basis points from the previous quarter to 23.9%, a 13% increase compared to the same time period last year. Capital markets activity accelerated slightly in Q3; transactions were led by Workspace Property Trust's 53 property, multi-state portfolio acquisition from Griffin Realty Trust, which included the four-building Evergreen Corporate Center. Melvin Mark Companies invested in the CBD with the purchase of the Alderway Building, trading at $213 per square foot, and Unitus Community Credit Union acquired the Bridgeport Center, located in the i-5 South submarket, for $301 per square foot.
2022 Q3 Portland Metro Office Market Report