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Portland Explores Vacancy Fee as Downtown Struggles With Empty Storefronts [3/30/26]
Portland Business Journal | Sara Edwards | March 30, 2026
The Portland Business Journal turned to HFO Investment Real Estate director of market intelligence Aaron Kirk Douglas for the multifamily perspective on a proposed city vacancy fee. This fee would charge landlords for leaving residential and commercial space empty. Douglas argued the council is aiming at the wrong target. Rather, he said members should focus on cutting regulation and boosting job creation and retention rather than adding a fee that would hurt renters and tenants. “Market rate providers are already providing concessions in order to fill units, which is bringing rents down that have already been flat for the last couple of years,” he said.
Douglas questioned the logic of the approach and warned that the cost would not be borne by property owners. “I just don’t understand what the point is,” he said. “It could be that (City Council) wants to raise some more money, but ultimately those costs of a vacancy tax filter down to the renters.” The story notes a recent Institute on Taxation and Economic Policy study found such taxes have not had dramatic effects on vacancy in cities that tried them.
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