Major Tenant Movements and Market Dynamics
The Portland retail market in Q1 2025 was highlighted by several significant leasing transactions, particularly in the entertainment and recreational sectors:
66,700 sq ft lease in Portland
55,736 sq ft lease
41,312 sq ft in Tigard
These large-format entertainment tenants reflect a broader trend toward experiential retail that cannot be replicated online, providing landlords with stable, long-term tenants.
The retail sector faced significant challenges in 2024-2025 with several major bankruptcies affecting strip center landlords nationwide:
Filed for bankruptcy and announced closure of approximately 870 stores. However, Variety Wholesalers acquired many locations, with some stores remaining open under new ownership.
Filed for its second Chapter 11 bankruptcy in two years, announcing closure of up to 500 stores (444 confirmed closures by May 2025).
Entered liquidation, closing all locations and creating vacancy in shopping centers nationwide.
These bankruptcies have created opportunities for expanding retailers like Ollie's Bargain Outlet, which has been acquiring former Big Lots locations, providing landlords with replacement tenants relatively quickly.
Portland landlords are increasingly embracing creative repositioning strategies for vacant big-box spaces. Former retail spaces are being converted to mixed-use developments, medical facilities, and distribution centers, reflecting the market's adaptation to changing consumer behaviors and space needs.
New speculative construction is limited; the trend is adaptive reuse of existing big-box spaces.