Still, the report finds the Portland market has not been hit nearly as hard as our high tech neighbors in Seattle, San Francisco and San Jose. In those cities, vacancy rates are rising by 5 and 10 points, rental rates are dropping and development activity has come to a screeching halt, according to the report.

As is usually the explanation, Grubb & Ellis attributes Portland good fortune to a diversified economy and the Urban Growth Boundary, which "both of which serve to insulate the office market from drastic swings in the national economy. Some tech-heavy submarkets in Portland have been hit harder than the rest of the region, but their relative size means that a rebound should be coming in the next two to three quarters."

Vacancy rates in the metro area went up just under a point from 7.9% to 8.5%, net absorption remained fairly healthy at 344,000 sf and rental rates have remained firm, finds the report. "We have, however, seen the return of some modest concessions," finds the report, "primarily in the form of free rent and many developers have changed their construction plans to hold out for significant pre-lease activity or a build-to-suit tenant."