The Portland industrial real estate market exhibited signs of softening in the second quarter of 2025, with rising vacancy and availability rates, flat rental growth, and a notable slowdown in leasing activity. According to Kidder Mathews’s latest market report, the direct vacancy rate increased to 5.4 percent as of June 30—up from 4.6 percent in the previous quarter and 4.6 percent in Q2 2024—crossing the 5 percent threshold for the first time in a decade. At the same time, the total availability rate surged to 9.4 percent, marking a 210 basis point year-over-year jump and reaching a 15-year high. Average asking lease rates remained flat quarter-over-quarter at $0.85 per square foot (NNN), but declined 3.4 percent from $0.88 in Q2 2024. This downward pressure on rates aligns with broader

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