Developers are circling a massive stretch of land right next to Portland International Airport, asking the Port of Portland to lease roughly 52.7 acres for a planned $130 million industrial and office project that could reshape the area around PDX. The proposal would flip airport-adjacent land into warehouses, light manufacturing facilities and office space aimed at logistics operators and regional industrial tenants. The Port Commission is slated this week to decide whether the request should advance.
According to the Portland Business Journal, the development team has formally requested a ground lease covering about 52.7 acres, pegging construction costs near $130 million. Early site concepts show a mix of industrial buildings and office space, but the actual schedule hangs on commission approval, infrastructure work and a full slate of permits. The Business Journal reports that port officials plan to place the lease request on an upcoming commission agenda.
Port Pushing Airport Land Toward Industry
The Port of Portland has been steadily steering more of its real estate toward industrial and manufacturing uses, including a mass timber innovation campus at Terminal 2 and other efforts to prepare airport-area parcels for production and training. Port materials point to soil stabilization work and new infrastructure that are meant to make these sites more shovel ready for manufacturing and workforce programs. Recent background on the Terminal 2 push can be found in coverage of how a Swiss timber giant bets big on Terminal 2.
Why PDX Makes Sense for Builders
Land that hugs the airport comes with some enviable perks for industrial users, including direct access to I-205, intermodal rail connections and air cargo operations that are critical for distribution and advanced manufacturing. Data from CBRE show that in Q1 2026, industrial vacancy in the Portland market ticked up to around 7.6 percent as new projects hit the market, even as demand stayed concentrated on high quality, well located parcels. That mix of rising supply and a shortage of large, development ready sites helps explain why a 52.7 acre piece of land next to PDX has developers lining up.
What Comes Next
The Port Commission’s upcoming review is the first big hurdle. If commissioners sign off on a ground lease, the project would move into site preparation, permitting and utility upgrades before any buildings start to rise. The developers’ application and port staff materials, as described by the Portland Business Journal, keep the initial cost estimate near $130 million but stop short of locking in a construction timeline. As the proposal moves ahead, neighbors, freight operators and city planners are expected to scrutinize truck access, noise controls and environmental review documents.
If the port ultimately inks a lease, the project would add a major block of industrial capacity in a region that has been hungry for large, shovel ready sites. The fine print that nearby residents care about most, including truck routes, buffers and operating hours, will get worked out through permitting and detailed commission reports. Keep an eye on future Port Commission agendas and staff packets for the full breakdown and any related permit filings as they land.
