Portland Retail Market Report

Demand rising, despite headwinds. This year’s supply pipeline will be the largest since 2016, putting upward pressure on vacancy. Even so, Portland is projected to post a nearly 4 percent gain in retail sales in 2026, barring an unexpected shock to the economy, supporting modest improvement in tenant demand. Clark County, particularly Vancouver, is likely to be a focal point of this momentum, as above-average multifamily net absorption in 2025 signals an expanding residential base that may bolster local space demand. Meanwhile, the Interstate 5 Corridor is positioned for continued vacancy compression. As one of only two submarkets to record a decline in vacancy last year, it benefits from proximity to emerging employment centers and higher-income households — trends expected to drive leasing demand in 2026. The CBD faces a more challenging outlook, entering the year with vacancy up roughly 120 basis points, compounded by elevated office vacancy. Even so, rising downtown foot traffic in 2025 suggests the core may see a gradual improvement in net absorption.