Portland Retail Market Report

North-south axis drives stability. The Interstate 5 corridor to the north and south of Portland proper is anchoring the metro’s retail performance and could serve as a base for broader recovery. Here, vacancy rates compressed over the past year to the lowest levels metrowide, supported by strong transportation connectivity, higher household incomes and population growth. Appropriately, much of the metro’s 2025 supply additions are concentrated here, including a large shopping center in Sherwood that was well-leased as of August. Alongside this, leasing momentum has shifted toward nontraditional tenants such as indoor sports venues, pointing to a more diverse tenant mix that may bolster long-term demand.