Oregon’s Commercial Construction Hotspots (2024–2025)

Oregon has experienced a surge in commercial construction activity in 2024 and 2025, with several cities seeing significant developments across office, retail, industrial, and hospitality sectors. Below we highlight the key cities driving this boom – noting project types, estimated values, and major projects – and then compare these to Oregon’s 10 largest cities by population. This reveals where growth overlaps with population centers and where smaller cities punch above their weight.

Leading Cities for Commercial Development (2024–25)

Portland (Population Rank #1): Oregon’s largest city leads in overall commercial construction by sheer scale. Major mixed-use “mega-projects” are underway to transform central areas – for example, the Albina Vision redevelopment in Northeast Portland (95-acre site) has a $450 million federal commitment to restore the historic Lower Albina district with caps over I-5, new commercial space, and housing. On the east side, the OMSI District (24 acres) is planned as a transit-oriented neighborhood with offices, labs, and 1,200 housing units; it aims for $1.2 billion in annual economic output. Downtown, Prosper Portland is driving the Broadway Corridor project, converting the former USPS site into a new neighborhood with offices, retail, and housing. Portland is also seeing large hospitality investments – notably the new Ritz-Carlton hotel tower (35 stories) opened in late 2023. This luxe development (with 251 hotel rooms plus high-end residences) cost nearly $700 million and exemplifies the hospitality and mixed-use construction in the city. In the industrial sector, activity continues at the Port and outskirts – for instance, a recent permit for a $22 million trucking distribution facility in the Rivergate area (Port of Portland) was issued in early 2024. Additionally, healthcare-related construction is robust: Oregon Health & Science University is erecting a 14-story hospital expansion on Marquam Hill (scheduled to open 2026) with a budget of $650 million, adding significant commercial construction value in the healthcare domain. Overall, Portland’s projects span office (urban redevelopment), retail/restaurant (as part of mixed-use districts), industrial logistics, and hospitality, maintaining the city’s status as Oregon’s construction hub.

Hillsboro (Population #5): In the Portland metro’s “Silicon Forest,” Hillsboro stands out for industrial and tech-related construction. The city secured a monumental commitment from Intel, which in 2024 announced plans to invest $36 billion in its Hillsboro campuses to expand and modernize its semiconductor R&D and production facilities. This includes next-generation fabs and the world’s first high-NA EUV lithography tools, positioning Hillsboro for cutting-edge chip development beyond 2025. (For context, Intel had recently spent $3 billion expanding its D1X fab module a few years prior.) Supporting this semiconductor boom, Governor-led efforts are even expanding Hillsboro’s urban growth boundary to accommodate a new high-tech research center. Beyond Intel, Hillsboro is a data center hotspot: the city’s data center vacancy hit near 0% in 2024 amid rapid build-out, with 527 megawatts of capacity under construction in the Portland-Hillsboro area according to DJC Oregon. Major operators (Flexential, QTS, Aligned, etc.) are developing large server farms to leverage Hillsboro’s fiber connectivity. Commercial projects also include some office and retail space to serve the growing workforce, but the driving force is clearly industrial construction (high-tech manufacturing and data centers). In sum, Hillsboro (though only Oregon’s fifth-largest city) is experiencing massive construction investment – primarily industrial/tech development valued in the tens of billions – far beyond what most cities its size see.

Salem (Population #3): Oregon’s capital has emerged as a logistics and industrial development center in this period. The Mill Creek Corporate Center on Salem’s southeast edge has attracted multiple big-box distribution projects. An Amazon distribution center opened recently (part of Amazon’s expansion in the Willamette Valley), and in 2024 a new Dollar General regional warehouse was under construction in the same area. One marquee project is the Gensco distribution and manufacturing facility (HVAC supplies) now being built in Mill Creek: a 479,000 sq. ft. center (with ~100k sq. ft. of manufacturing) costing $55 million, slated to open by spring 202 according to the Salem Reporter. This project will create 50–100 jobs and expand Salem’s industrial base. Salem’s commercial construction is thus heavily weighted toward industrial/warehouse development, taking advantage of the city’s location on I-5. While industrial parks boom on the outskirts (supported by city economic development efforts touting Salem’s strategic location, the city’s core has seen more modest commercial growth. Noteworthy downtown projects have included renovations of legacy properties (e.g. reuse of the former downtown Macy’s) and incremental office/hospitality additions, but no major office tower construction during 2024–25. Overall, Salem’s construction activity is significant and focused on distribution, manufacturing, and related office space, with tens of millions of dollars in new facilities coming online.

Bend (Population #6): Bend continues to ride a wave of development fueled by rapid population and tourism growth. Commercial construction here spans hospitality, retail, and light industrial to support a burgeoning Central Oregon economy. In recent years Bend saw its hotel room inventory expand (for instance, a SpringHill Suites and boutique hotels opened around the Old Mill District), and this trend persisted into 2024 with new lodging projects catering to tourists and business travelers. The retail sector in Bend has been playing catch-up: after a decade of limited retail construction (only ~4% inventory growth in 10 years), demand finally spurred new projects. Several shopping centers and standalone stores have been built or planned – for example, a new Costco opened on the north end (relocated to a larger facility) and mixed-use developments are adding ground-floor retail downtown. Industrial development is another hot spot: Bend’s industrial vacancy remained extremely low (~2% in 2023), prompting new flex industrial parks to break ground. One such project is the Red Barn Industrial Center (in neighboring Redmond, but serving Bend’s market), which expanded in late 2023 and plans further phases to add tens of thousands of sq. ft. of flexible warehouse/office space. Within Bend city limits, additional light industrial buildings and business parks are under construction to accommodate craft beverage producers, outdoor gear manufacturers, and logistics firms. While exact valuations per project vary, many are in the multi-million dollar range (e.g. a $10–20M brewery expansion, new mid-sized office buildings, etc.). Bend’s largest recent commercial project is the continued build-out of the Downtown Core and Old Mill areas – including new Class A office space and galleries – albeit at a smaller scale than in Portland. In summary, Bend’s commercial construction is robust across hospitality (hotels), retail centers, and industrial/flex space, driven by the city’s economic resilience and growth (even as national trends cooled in 2024)​.

Eugene (Population #2): Eugene’s commercial construction in 2024–25 has been steady but not explosive. Much of the activity centers on downtown revitalization and mixed-use projects rather than large standalone commercial buildings. A flagship effort is the Downtown Riverfront redevelopment, which is transforming a former industrial utility site along the Willamette River. In 2024 the city entered Phase II of this project, constructing the new Riverfront Plaza (a civic space connecting downtown to the river) set to open by summer 2025. This public plaza costs about $5 million (within a larger $9M park development) and is a catalyst for private development on adjacent parcels. Alongside it, private developers (Atkins Dame, et al.) are erecting multiple mixed-use buildings in the new “River District,” including six mid-rise residential buildings with ground-floor commercial space (restaurants, retail) to create a vibrant new neighborhood. Elsewhere downtown, Eugene has invested in modernizing its transit station and opened a permanent Farmers Market Pavilion, which together improve foot traffic for nearby shops and eateries. In the commercial sector proper, Eugene saw a few office and retail projects: for example, the Fifth Street Public Market completed an expansion with boutique retail and the upscale Gordon Hotel (just prior to 2024), and in 2024 a new 81-unit mixed-use building (“Ollie Court”) broke ground near downtown​. The city is also benefiting from university-related development – the University of Oregon’s Knight Campus Phase II (a research/innovation building) is under construction, which, while an academic facility, adds jobs and activity that spur nearby offices and restaurants. Industrial development in Eugene proper has been limited (large industrial users often choose Eugene’s sister city Springfield or nearby Junction City). In sum, Eugene’s construction highlights include mixed-use and institutional projects more than big private commercial towers. Compared to some smaller cities, Eugene’s commercial growth has been moderate, focusing on downtown enhancements and infill rather than big-box new construction.

Medford (Population #8): The commercial construction scene in Medford and the Rogue Valley is steady, driven by regional retail and some mixed-use growth. In 2024, Medford approved a significant mixed-use development on the southwest side of the city – the South Stage Park project will add four new 3-story buildings combining retail/office with apartments. Three of these buildings include ground-floor commercial space (about 2,500 sq. ft. each for cafes, shops, etc.) below residential units​, creating a small “town center” feel with courtyards and a central plaza. This indicates an emphasis on blended residential-commercial growth to meet housing needs while expanding local retail. Elsewhere in Medford, hospitality and retail construction has seen some uptick: new hotels have opened along the I-5 corridor (serving travelers and nearby sports complexes), and a 7-Eleven gas station project in northeast Medford (Crater Lake Ave.) was greenlit in 2024, reflecting continued retail expansion in growing neighborhoods​. On the industrial front, Medford’s activity has been modest – but the metro area does have ongoing projects like Rogue Valley’s medical facilities expansion and logistics development in White City (just outside Medford). For example, in nearby Central Point and White City (suburbs of Medford), large distribution centers for e-commerce and a new manufacturing plant have been in the works, contributing to regional commercial construction value (often not counted in Medford city proper). Overall, Medford’s 2024–25 commercial construction is characterized by moderate-sized projects: expanding retail outlets, mixed-use complexes, and maintaining its role as the retail hub of southern Oregon. While not as high-value as the tech investments up north, these projects are important locally and often in the $5–20 million range each.

Other Noteworthy Cities: Beaverton (Population #7) and Gresham (#4) – both in the Portland metro – have seen commercial growth but on a smaller scale relative to the above. Beaverton continued work on its downtown revitalization (a new arts center, parking garage, and mixed-use apartments opened recently) which boosts local retail and dining. Nike’s World Headquarters campus (on Beaverton’s edge) completed its expansion just before this period, so current construction is mostly tenant improvements and a new adjacent office building, not a major new phase. Gresham, meanwhile, has marketed industrial sites and saw incremental development: for instance, new small warehouses and businesses in the Rockwood area and along the NE Glisan industrial corridor. However, Gresham did not host a marquee project on the scale of others – many large distribution centers in east Multnomah County chose Troutdale or Fairview just outside Gresham’s borders. Thus, both Beaverton and Gresham had ongoing commercial projects (mainly < $50M each) but none of the state’s largest projects in 2024–25.

Rising Star Outside the Top 10

One city outside Oregon’s ten largest by population stands out for its outsized commercial construction boom:

• Redmond (Population ~37,000, Rank ~18): Redmond has become Central Oregon’s development engine, experiencing billions in planned investments and rapid job growth. As of 2024, over 33 commercial projects were in the pipeline for Redmond city limits, expected to create 3,300+ new jobs – a staggering figure for a mid-sized city. Much of Redmond’s growth is industrial and logistics: the city leveraged its proximity to Bend and its airport/transport links to attract manufacturers and distributors. A prime example is the expansion of the Redmond Airport industrial zone (750 acres), envisioned to eventually support 9,000 new jobs in manufacturing, warehousing, and aviation-related businesses.

Already, companies are building and expanding: Wild Mike’s Ultimate Pizza is relocating its headquarters and production to Redmond, Nosler (an ammunition manufacturer) is expanding from Bend into Redmond, and freight companies like Diamond Line are setting up new depots. Construction of a $200 million airport terminal expansion also began, enhancing the region’s transportation infrastructure​. On the commercial front, Redmond is developing shopping and hospitality to match its population growth – new hotels, breweries (e.g. Sunriver Brewing opening a large pub in Redmond​), and retailers are under construction in 2024. The city is actively creating a new mixed-use district on a former golf course as well​, which will bring commercial centers and offices alongside housing. In short, Redmond’s construction activity touches industrial parks, office HQs, retail centers, and public facilities, with investment levels rivaling much larger cities. This makes Redmond a clear addition to the list of Oregon’s commercial construction hotspots, despite its smaller size.

Honorable mention: Prineville (Population ~11,000) is another small city with outsized commercial investment, primarily due to its role as a data center hub. Tech giants Facebook (Meta) and Apple have built massive data center campuses in Prineville over the past decade, totaling over 1 million sq. ft. of server farms. In 2024–25, this trend continues with additional data hall construction and infrastructure upgrades (though these facilities are often automated and don’t create as many jobs, the capital expenditure is huge – easily hundreds of millions of dollars per building). Prineville’s example underscores that some high-value industrial projects occur outside major population centers. Similarly, rural Morrow and Umatilla Counties (Boardman, Arlington area) are seeing large-scale AWS data center investments – Amazon bought 400+ acres in 2024 for new data centers in Arlington, projecting a major “growth spurt” for that tiny community. These cases show that commercial construction is not solely an urban phenomenon in Oregon.

Comparison to Top 10 Cities by Population

Oregon’s ten largest cities by population (as of 2025) are: Portland, Eugene, Salem, Gresham, Hillsboro, Bend, Beaverton, Medford, Corvallis, and Springfield. Comparing this list to the cities leading in construction activity reveals both overlaps and discrepancies:

• High-Population Cities Driving Construction: Several of the largest cities are also the biggest construction hubs. Portland (#1) clearly overlaps – it’s both the population and construction epicenter of the state. Salem (#3) and Hillsboro (#5) also appear on both lists, each leveraging different strengths (Salem in logistics, Hillsboro in tech). Bend (#6) is another example of a top-10 city by size that is experiencing a construction surge, commensurate with its rapid growth. These cities show a strong correlation between population size and commercial development volume.
• Large Cities with Less Activity: On the other hand, a few of the largest cities have not seen proportional commercial construction in 2024–25. Eugene (#2 population), while busy with civic projects, did not have the same level of private commercial building as some smaller cities – its growth was more modest and focused on mixed-use revitalization rather than big new commercial complexes. Gresham (#4), despite its size, had relatively limited new commercial construction (with some industrial infill, but no marquee project). Corvallis (#9) and Springfield (#10) likewise did not register major statewide commercial projects in this period. These cities are sizeable but their economies (university-town and secondary metro, respectively) didn’t produce headline construction projects in 2024–25, highlighting a discrepancy between population rank and construction activity.
• Smaller Cities Punching Above Their Weight: Conversely, some cities outside the top 10 by population have become construction hotspots. The prime example is Redmond, not in the top 10, yet attracting significant commercial development (industrial and employment centers) on par with much larger cities, as discussed above. Redmond’s boom is notable enough that it deserves inclusion when ranking commercial construction leaders, despite its smaller population. Additionally, niche cases like Prineville (for data centers) show that even very small cities can host large-dollar projects. No city in the top-10 population list is comparable to Prineville in this specific niche, indicating a unique outlier where a tiny city sees outsized investment.

In summary, most of Oregon’s construction activity is concentrated in its major population centers – Portland, Salem, Hillsboro, and Bend are all top-10 cities pulling heavy weight in development. However, there are important exceptions: Redmond (outside the top 10) has emerged as a significant commercial construction hub that must be added to the conversation due to its high level of activity and investment​. Meanwhile, a couple of big cities like Eugene and Gresham show that a large population doesn’t automatically equate to leading construction growth – their development in 2024–25 was present but more subdued. This comparison underscores that Oregon’s commercial development landscape is somewhat decentralized: while Portland remains dominant, other mid-sized cities (and even a few small ones) are experiencing construction booms in certain sectors, reshaping the economic map beyond just the legacy urban centers.

Sources: Key data were compiled from local news and official reports. For example, Portland’s project details are from Portland Tribune/OMSI updates ​omsi.edu​ and Fast Company’s report on the Ritz-Carlton ​fastcompany.com. Salem’s industrial projects come from Salem Reporter ​salemreporter.com​. Hillsboro’s Intel investment was noted in a City of Hillsboro release ​hillsboro-oregon.gov. Bend and Redmond insights were drawn from Cascade Business News and Redmond Spokesman (Mayor’s State of the City) reports ​cascadebusnews.com. Medford’s development was reported by Medford Alert ​medfordalert.com.