The Portland retail real estate market exhibited signs of transition in the second quarter of 2025, with fluctuations in vacancy, rental pricing, and construction activity shaping current trends. According to a recent market report from Kidder Mathews, the overall vacancy rate rose to 4.3 percent as of June 30, up slightly from 4.1 percent in the previous quarter and 3.9 percent a year earlier. This marks a 40 basis point increase year-over-year. Despite the higher vacancy rate, average asking rents saw a strong upward trajectory, climbing to $1.96 per square foot. This represents a 7.79 percent year-over-year gain from $1.82 in Q2 2024, and a 5.38 percent increase from $1.86 recorded in Q1 2025.

Retail construction activity picked up pace during the quarter. A total of 242,488 square fee

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