The Portland office market continued to weaken in the second quarter of 2025, with vacancy reaching an all-time high and leasing activity slowing to record lows. According to Kidder Mathews’s latest market report, the direct vacancy rate climbed to 15.1 percent as of June 30, surpassing the 14 percent mark for the first time on record and increasing 170 basis points from Q2 2024. Availability followed the same trajectory, rising to 18.2 percent, a 120-basis-point increase year-over-year. Despite the elevated vacancies, average asking lease rates edged up 5.6 percent over the past year to $29.64 per square foot, suggesting landlords remain cautious about aggressive rate reductions even amid softening demand.

Leasing activity remained muted in the first half of 2025, totaling just 635,972 s

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