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2022 Q4 Portland Metro Office Market Report

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The greater Portland office market experienced negative net absorption for the 12th consecutive quarter in Q4 2022, with quarterly negative net absorption of 483,000 square feet. The year’s total of -1.5 million square feet negative net absorption, marked slightly better than 2021’s total of -1.8 million square feet. Over the past three years, vacant inventory has increased by 4.9 million square feet. This is more than the combined square footage of Portland’s seven largest office properties. Across the greater Portland market, Class B properties experienced the greatest amount of negative net absorption in 2022, with a total of -938,000 square feet, 76% of which occurred downtown. This accounted for 63% of the total negative net absorption across all asset classes for the year. The vacancy rate in the market reached 17.9%, a 9.7% increase from the same period the previous year. The vacancy rate was highest in the CBD at 25.3%, a 4.1% increase from the previous quarter. Capital markets activity slowed significantly in the final quarter of 2022, with a quarterly sales volume of $21.2 million, an 84% drop from the previous year. The largest transaction of the quarter was the sale of Parkwood Place in Clackamas for $6.95 million at a 6% cap rate.

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2022 Q4 Portland Metro Office Market Report

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Jamison Shields

Research Analyst

Portland

Jamison Shields joins the Colliers team after working for a boutique student housing developer providing asset management and development services. Responsible for research efforts out of the Portland office, related to office, industrial, multifamily and retail asset types. Jamison works to collect, analyze and synthesize market data for the local commercial real estate market. He provides pitch support, innovative GIS dashboards, and client-specific reporting. 

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