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PORTLAND, Ore. — Nearly four out of every 10 square feet of office space in downtown Portland were vacant in the third quarter of 2026, more than three times the rate recorded before the pandemic.
Downtown Portland Office Vacancy Has More Than Tripled Since 2019
Figures presented by the Portland Metro Chamber on November 12 put office vacancy in the city’s central business district (CBD) at 38.8%, compared with 12% in the final quarter of 2019. The rest of the Portland office market had a vacancy rate of 20.6%.
That gap is also showing up in occupancy trends. Downtown lost 75,000 square feet of occupied office space during the third quarter and 247,000 square feet so far this year.
Elsewhere in the market, occupied space increased by 304,000 square feet in the quarter.
Tidings Data Snapshot
Downtown Portland’s Office Vacancy GapOffice floor space / CBRE figures presented November 12, 2026The 2019 figure is the pre-pandemic baseline. Vacancy measures floor area, not the number of buildings or individual offices.
Source: Portland Metro Chamber / CBRE Q3 2026 Office Market ReportDailyTidings.com
Employer Departures and Downsizing Have Removed Thousands of Workers From the Central City
The Chamber estimates that the central city has lost 2.25 million square feet of office occupancy and around 8,000 employees through business departures and downsizing. Among the examples in its presentation are:
- U.S. Bank, which accounted for about 1.2 million square feet and more than 2,000 employees.
- KinderCare, with 80,000 square feet and more than 500 employees.
- OCHIN, which had 40,000 square feet and 750 employees, and went largely virtual after the pandemic.
- Cambia, which also reduced its office space from about 200,000 to 100,000 square feet.
And it’s not just office landlords that are feeling the effects. Fewer workers mean fewer potential customers for downtown shops and restaurants. Other associated businesses like building services and maintenance firms are also losing out.
Buildings Are Selling Far Below Previous Prices and Housing Conversions Face Obstacles
Several major downtown properties have sold for a fraction of their previous prices. The U.S. Bancorp Tower, known as Big Pink, sold for $45 million in 2025, down from $372 million in 2015.
The Commonwealth Building sold for $6.5 million in January 2026, compared with $69 million a decade earlier.
Tidings Data Snapshot
How Far Selected Portland Office Sale Prices FellSales cited in the Chamber’s November 12 presentation| Property | Prior sale | Latest sale |
|---|---|---|
| Big Pink | $372M | $45M |
| Commonwealth | $69M | $6.5M |
| PacWest Center | $170M | $55.7M |
Big Pink: 2015 to July 2025. Commonwealth: 2016 to January 2026. PacWest Center: 2016 to October 2025. These are building sale prices, not assessed tax values.
Source: Portland Metro Chamber / The Future of Downtown, slide 25DailyTidings.com
And the popular trend of turning empty offices into apartments isn’t a simple fix.
As the Chamber’s presentation on downtown’s future sets out, building layouts, scattered occupancy, seismic requirements, historic restrictions, and construction costs are all hurdles that can scupper plans for residential conversions.
Downtown Pedestrian Activity Improves but Businesses Still Face a Smaller Weekday Customer Base
There are green shoots suggesting recovery, at least in visitor numbers. A total of 22.2 million downtown pedestrian visits were recorded between January and August 2026, up 3.6% on the same period last year.
Still, businesses report that there are some customers who avoid the area over concerns about safety.
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