Major Nonprofit Lease Signals Possible Turning Point for Downtown Portland’s Office Market
Office markets across the country are still adjusting to the realities of hybrid work, rising vacancies, and shifting tenant needs. But occasionally a single lease can send a powerful signal that a downtown market still has momentum.
That’s the case in Portland, where a recent office deal involving a well-known nonprofit has attracted industry attention.
According to reporting by Brian Yermal Jr. and Chris Sangiuliano in CoStar News (read the original article here: https://product.costar.com/home/news/426692873), Energy Trust of Oregon signed a lease for office space in a historic downtown building — a move that industry professionals say could help boost confidence in Portland’s struggling central business district.
While the story centers on Portland, it also offers insight into trends affecting office leasing across the West — including Boise commercial real estate.
A Notable Office Lease in a Challenging Market
The deal involves the Power and Light Building, a 16-story office property located at 920 SW Sixth Avenue in downtown Portland.
Key facts reported by CoStar include:
- Energy Trust of Oregon leased 20,655 square feet of office space
- The lease was signed in April 2025
- The building totals roughly 304,000 square feet
- The property dates back to 1927 and underwent renovations in 2018
- The owner is The Green Cities Co.
Industry professionals recognized the transaction as the 2026 CoStar Impact Award winner for Lease of the Year in Portland.
While the deal itself is not massive by national standards, it stands out because of where it happened: a downtown office market facing significant vacancy challenges.
Portland’s Downtown Office Market Is Still Recovering
Like many urban cores across the United States, Portland’s central business district has struggled to regain office occupancy following the pandemic-era shift toward hybrid work.
According to CoStar data cited in the report, vacancy in the downtown Portland office submarket is close to 29%.
That level of vacancy makes it difficult for property owners and investors to regain confidence in the long-term strength of downtown office assets.
However, commercial real estate experts say that high-profile tenants relocating downtown can create momentum.
When a respected organization chooses a central business district office location, it can:
- Increase daily activity and foot traffic
- Reinforce the relevance of downtown workplaces
- Encourage other organizations to reconsider the CBD
- Improve investor sentiment toward downtown office properties
In other words, one visible lease can help shift the narrative around a struggling office district.
A Smaller Office With a Strategic Location
Interestingly, the Energy Trust of Oregon lease reflects another broader office trend.
The nonprofit significantly reduced its physical footprint in the move — shrinking its office space by more than half compared with its previous workspace.
That strategy mirrors what many organizations are doing nationwide:
- Maintaining an office presence
- Reducing square footage
- Prioritizing central, transit-accessible locations
The Power and Light Building offers access to several public transportation options, making it easier for employees to commute without relying on long car trips.
What This Means for Office Markets Like Boise
Although Portland and Boise are very different markets, the trends behind this deal are relevant across the West.
In Boise commercial real estate, office tenants are increasingly focused on:
- Efficient, smaller office footprints
- Walkable locations near amenities
- Quality buildings with modern upgrades
- Easy access to transportation and services
Companies are no longer simply asking how much space they need. Instead, they’re asking what type of workspace best supports hybrid teams and collaboration.
That shift has changed how landlords think about office leasing strategies.
Local Insight: Confidence Matters in Office Markets
One lesson from Portland’s experience is that perception and momentum matter in downtown real estate markets.
When vacancy rises, confidence can weaken quickly. But when recognizable organizations commit to downtown offices, it can gradually rebuild that confidence.
Boise’s office market currently faces far fewer challenges than Portland’s CBD. Still, the same principle applies: visible leases by respected tenants often attract additional interest from other organizations.
That’s why leasing activity from government agencies, nonprofits, healthcare groups, and regional headquarters can be especially valuable for downtown districts.
My Take
Office markets nationwide are evolving rather than disappearing.
Companies still want workplaces — they’re just using them differently. The new model often involves smaller spaces, flexible layouts, and locations close to amenities.
Deals like the Energy Trust lease show that even in challenging markets, strategic tenants can help revive activity in downtown buildings.
For Boise, the takeaway is encouraging: markets that maintain vibrant urban cores, accessible transit, and appealing office environments tend to retain tenant demand even during periods of change.
Downtowns that continue investing in walkability, mixed-use development, and quality office inventory will likely remain competitive for years to come.
Mike Gioioso (joy-OH-so) has for 16+ years been helping companies of all sizes buy, build, and lease perfect places for business in greater Boise, Idaho and beyond.
www.streetsmartidaho.com mike@streetsmartidaho.com 208-209-9166
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