U.S. Bancorp Tower in Portland Sells for $70M Amid Declining Market
May 24, 2025 | Portland, OR — The U.S. Bancorp Tower, affectionately known as “Big Pink,” has been sold for approximately $70 million, marking a significant downturn for Portland’s commercial real estate market. Once valued at over $400 million in 2015, the 42-story skyscraper’s sale reflects the growing challenges faced by downtown Portland as businesses continue to reevaluate their office space needs.
A Symbol of Decline
The U.S. Bancorp Tower, located at 111 SW 5th Avenue, has long been a defining feature of Portland’s skyline. Designed by Skidmore, Owings & Merrill and completed in 1983, the building boasts over 1.1 million square feet of office space. Its distinctive pink granite and glass façade earned it the nickname “Big Pink”. Once home to major tenants like U.S. Bank and Digital Trends, the tower has seen a significant decline in occupancy. U.S. Bank announced in 2024 that it would vacate the building, and other tenants have followed suit. As of the sale, the building’s occupancy rate stood at 45.7% .
Factors Contributing to the Decline
Several factors have contributed to the devaluation of the U.S. Bancorp Tower:
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High Vacancy Rates: Portland’s office vacancy rate reached 35% in the first quarter of 2025, the highest among the 25 largest central business districts in the U.S.
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Shift to Remote Work: The COVID-19 pandemic accelerated the adoption of remote and hybrid work models, leading many companies to downsize or relocate their office spaces.
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Urban Challenges: Issues such as crime, homelessness, and social unrest have made downtown Portland less attractive to businesses. Former tenants like Digital Trends cited safety concerns, including vagrants sleeping in hallways and drug use in common areas, as reasons for their departure .
Potential for Repurposing
Despite its challenges, the U.S. Bancorp Tower’s location and structure present opportunities for repurposing. The building’s proximity to the Pearl District and its substantial floor space make it a candidate for conversion into mixed-use developments, including residential units, retail spaces, or hospitality venues. However, such a transformation would require significant investment and overcoming challenges related to zoning, infrastructure, and market demand.
Broader Implications for Portland’s Real Estate Market
The sale of the U.S. Bancorp Tower underscores broader trends affecting Portland’s commercial real estate market. The city has seen a wave of office buildings being listed for sale or repurposing, including the PacWest building . While some suburban areas have experienced lower vacancy rates and increased demand for office space, downtown Portland continues to face significant challenges.
City officials, including Mayor Keith Wilson, have expressed a commitment to revitalizing downtown Portland. Efforts are underway to address public safety concerns, improve infrastructure, and attract businesses back to the urban core. However, the path to recovery remains uncertain, and the future of iconic structures like the U.S. Bancorp Tower will play a pivotal role in shaping the city’s commercial landscape.
In conclusion, the sale of the U.S. Bancorp Tower for $70 million reflects the broader challenges facing Portland’s commercial real estate market. While the building’s future remains uncertain, it serves as a symbol of the city’s ongoing efforts to adapt to changing economic and social dynamics.