Architectural renderings of a proposed renovation of the Moda Center show sweeping concourses with views of the basketball court and improved lighting, but whether public officials can muster support for the $600 million price tag remains to be seen.

They’re certainly trying. State and local officials mounted a concerted campaign this week to press the case for funding upgrades for the arena, which the city of Portland acquired in 2024 and leased back to Rip City Management, the management company of the Portland Trail Blazers.

Without the renovation, local leaders fear the Trail Blazers will move to another city.

“Renovating the Moda Center isn’t about one building — it’s about Oregon’s future,” Portland Mayor Keith Wilson said in legislative testimony on Wednesday. “This project strengthens our economy, supports communities across the state and ensures Oregon remains competitive for major events and investment. With state partnership, it becomes a generational investment in jobs, culture and long-term economic relevance.”

Oregon lawmakers hope to raise a large chunk of the necessary amount with a tax on players and other employees around the Moda Center. A bill to create the fund and direct tax revenues to it was introduced in the state Senate on Monday. The legislation, Senate Bill 1501, would also allow the state’s Department of Administrative Services to take ownership in partnership with the city of Portland.

The city and Multnomah County are also discussing potential funding sources to remake the Moda Center. Multnomah County Chair Jessica Vega Pederson called the Moda Center “a crucial economic engine for our state” in testimony given Wednesday. Gov. Tina Kotek also voiced support.

Despite growing criticism in some circles of taxpayer subsidies for sports teams, business leaders are largely united behind efforts to retain the Trail Blazers.

“It’s hard to understate the importance of the Trail Blazers to our community, especially at a time like this,” said Greg Goodman, co-president of Downtown Development Group, a major Portland real estate investment firm.

Portland can’t afford to lose the Blazers when the city’s economic recovery remains fragile, he said.

“Portland’s getting better, but we’ve obviously had some setbacks,” he said. “And losing the Blazers would be devastating to the pride of the community.”

Fears the Blazers could move have risen as Paul Allen’s estate, controlled by Jody Allen, prepares to relinquish ownership of the team to an investment group led by Tom Dundon, a Dallas businessman with few apparent ties to Oregon.

Sports team owners have not been shy about moving operations in search of better stadium deals. Major League Baseball‘s Athletics are in the process of moving from Sacramento to Las Vegas after jilting its longtime hometown of Oakland, California. The NFL‘s Raiders moved from Oakland to Los Angeles to Oakland to Las Vegas. Seattle still bears psychological wounds from the SuperSonics leaving for Oklahoma City. And even the Chicago Bears, one of the NFL’s oldest franchises, is considering leaving the city — the state of Iowa is dangling incentives in a long-shot bid for the team.

The Moda Center was completed in 1995 and originally named the Rose Garden. The arena supplanted Veterans Memorial Coliseum as the city’s premier sports and concert venue.

In addition to the Blazers, the Portland Fire will soon call Moda Center home as its inaugural WNBA season begins in May. The arena also hosts major concerts, including the Wu-Tang Clan, Cardi B and Pearl Jam in recent years. However, some artists such as Taylor Swift and Coldplay have bypassed Portland in favor of making tour stops in Seattle.

Officials hope the renovation can be completed by the time Moda Center hosts the 2030 NCAA Women’s Final Four. The arena generates an estimated $670 million in annual economic impact and nearly 4,500 jobs, according to a joint statement from state and local leaders.

It wasn’t immediately clear which architecture firm is designing the renovation. GBD Architects has designed past Moda Center upgrades, including new suites, concession areas and retail and concourse spaces. But a spokeswoman for the firm said GBD is not involved this time.

The renovation push comes as the 1803 Fund and Albina Vision Trust work to remake the neighborhood around the Moda Center. In December, the fund announced it had purchased two groups of properties, including grain silos between the arena and the Willamette River, for $70 million.

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Vacancies in Portland-area office space reached a record-high 15.1 percent during the second quarter of the year, Kidder Mathews stated in a new report.

It was the 11th consecutive quarter of rising vacancies in the Portland market, and the first time that vacancies crested 14 percent.

Leasing activity has slowed just as dramatically, Kidder Mathews reported. It fell nearly 43 percent to 635,000 square feet during the April-to-June period, compared to a year earlier, reaching a record low for the second quarter.

The only period of lower lease volume came in July through September 2020, during the heart of the COVID-19 pandemic.

“It’s pretty dreary,” said Gary Baragona, Kidder Mathews vice president for research, based in San Francisco.

“There’s still some work to do before that market starts to recover,” he said.

The plunge in office values has brought out bargain hunters. Investment activity grew 22 percent in the first half of 2025 compared to a year earlier, Kidder Mathews reported.

“Although institutional buyers have historically made up over 30 percent of the trades, private buyers and owner-users have accounted for over 90 percent of the transaction volume in the past year,” Kidder Mathews stated.

That fits with recent transactions such as the $45 million sale of the U.S. Bancorp Tower to auto dealer Jeff Swickard by Unico Properties, and the $33 million sale of Montgomery Park to Portland-based family investor Menashe Properties.

Asking rents grew to $29.64 per square foot, Kidder Mathews reported.

Many office users have downsized their space as employees’ hybrid work arrangements mean companies use less space. The average lease size is less than 3,000 square feet — approximately 5 percent below the 10-year average, Kidder Mathews reported.

“That illustrates that companies are trying to right-size their space,” Baragona said.

Large leases have become rare in recent quarters, and that trend is expected to continue, the brokerage reported.

Bucking the trend, some newer properties in Portland such as Block 216 and Eleven West have managed to attract tenants — primarily professional services firms. Architecture firm Populous recently agreed to lease a floor above the Bamboo Sushi restaurant at 404 S.W. 12th Ave., and leave a smaller space in the Central Eastside.

Suburban office space has outperformed urban offerings, but even suburban activity has slowed, Baragona said.

“The optimist in me says the cities that figure out how to reinvest in their urban cores are going to be the ones in front of that recovery cycle,” Baragona said, pointing to encouraging signs in San Francisco and Seattle.

“Portland has a little further to go,” he said. “Portland’s a market where we have yet to see much of a rebound in activity.”

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