Portland Office Market Report

White-collar commitments help office sector. The market’s vacancy rise slowed last year, aided by mid-grade offices. Gross absorption was near the pre-2020 average, and the volume of relinquishments declined. Large and upcoming move-ins provide hints of strengthening demand. The 100,000 square feet leased by RAJ Capital in Hillsboro indicates a desire by VC firms to have a presence in the metro, while data provider ZoomInfo’s upcoming expansion in Vancouver will contribute to the skilled labor agglomeration that is supporting Portland’s recovery. The population’s high level of bachelor’s degree attainment has historically been a draw for knowledge-intensive industries. These dynamics are poised to drive the first vacancy decline in eight years, within which Class A and B/C vacancy rates may come closer together. Net absorption in the fourth quarter of last year spiked for the luxury niche, yet dropped sharply for B/C buildings.