01/10/2026
As we move into 2026, Portland’s office market continues to evolve in the wake of post-pandemic shifts in how companies use space. Vacancy rates remain above long-term norms, with metro-wide office vacancy climbing to historic highs in recent quarters — exceeding 25%-plus in 2025.
Overall vacancy remains elevated compared to pre-pandemic levels — reflecting continued hybrid work strategies and tenant downsizing. Absorption patterns have been mixed, with some suburban and South Portland nodes showing positive absorption while core downtown remains challenged. New construction has all but paused, which may help stabilize inventory over time as existing space re-fills.
Why there’s reason for optimism in 2026:
National forecasts project commercial real estate fundamentals strengthening as capital returns to the sector and disciplined leasing activity rewards quality space and proactive landlords.
Tenants increasingly seek efficient, well-configured, and amenitized spaces — a trend that benefits buildings with thoughtful management and strategic upgrades.
With limited new supply coming online and companies refining their space needs, well-positioned buildings in the right locations are attracting tenants ready to commit for the long term.
At Kalberer Company, we’re actively engaged in this dynamic market — investing in tenant relationships, optimizing our buildings, and focused on long-term occupancy outcomes that support both our communities and our investors. If you’re curious about trends we’re seeing firsthand or are exploring space options, let’s talk.
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