Aug 20, 2024 - News
Portland office vacancies keep ticking up
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Office vacancies are on the rise in Portland, much like other major U.S. cities.
Why it matters: It's unusual for vacancy rates to grow while the economy has remained on solid ground.
Between the lines: The pandemic changed the way we work, and companies don't need as much space as they once did.
State of play: Across the U.S., vacancy rates reached a record 20.1% in the second quarter — the highest since at least 1979, when Moody's began tracking.
- Long-term leases are taking a long time to unwind, says Moody's associate economist Nick Luettke.
- And these vacancy rates are likely to continue to climb for the next few years, peaking at the end of 2026, per Moody's projections.
The bottom line: There's "just going to be pain over the next coming years," Luettke says.