Q1 2025 - Portland Industrial Market Report

Current Sentiment for Industrial Occupiers

• Industrial sublease space continues to increase, accounting for 3.8 Million SF at the end of Q1 2025, compared to 2.35 Million in Q1 2024.
• YoY asking rent has experienced 3 consecutive quarters of contraction, compared to its peak in Q3 2023 @ 13.8%. Asking rent is expected to continue to hold over the next 3 quarters, providing an opportunity for occupiers.
• In contrast to the increasing vacancy in warehouse space, manufacturing space has experienced a surge in demand as a result of new regulations and production needs in North America
• A drop in home sales is causing disruptions for housing retail suppliers and companies including Bed Bath & Beyond and Ashley Furniture closing distribution centers.