New Sobering Center | Cautious Optimism for the City's Economy

Multnomah County Confirms Location of New 24-Hour Sobering Center
County Commissioners Jessica Vega Pederson and Julie Brim Edwards met with the Portland business community earlier in February to share next steps and updates on the anticipated sobering and detox center. The county has initiated a purchase agreement on a 24,000 square-foot warehouse in the Central Eastside Industrial District for the center. The purchase of the building is expected to be finalized in April, and in June, the county will put out a request for proposals and will commence the bidding process to locate a provider to run the sobering center. Operations of the center are expected to cost around $10 million for staff and equipment, this doesn’t account for building costs once inspections are finished. An opening date hasn’t been announced yet, but the center will house up to 50 beds. The county says the new site will serve as a permanent location for sobering and withdrawal management services, allowing intoxicated people to avoid jails or hospital emergency rooms. The new center will be geared specifically toward short-term drug and alcohol withdrawal, and those who utilize the center can be connected with local recovery and treatment services.

This March, the county will work with the community to establish a collaborative good neighbor agreement before the center opens. An advisory group will be convened of businesses, community-based organizations, providers and peer organizations, law enforcement, elected officials and other neighbors.

A temporary Coordinated Care Pathway Center was opened in Southeast Portland last year, as a means of providing deflection services to people who accept treatment over jail. That location will be expanded to offer 13 sobering beds, starting this spring. Read the in-depth Multnomah County Plan for the Sobering and Crisis Stabilization Center.

Portland Metro Chamber and ECONorthwest releases State of the Economy
The city made significant strides last year, delivering results on livability issues, declined crime in the central city, street use of controlled substances became illegal again, fentanyl overdose deaths decreased, emergency shelter capacity expanded and more. Public perceptions of safety have improved, and the barrage of negative national media coverage has been eased. Now the focus is on long-term economic outlook for the Portland region—where major challenges remain. Population loss continued, as small natural increases (more births than deaths) were offset by net out-migration. The housing crisis persisted, with production remaining sluggish, and outside investors viewed the region unfavorably. As a result, much of the region remains unaffordable to households earning less than $160,000 annually.

Adding to the strain, large regional employers experienced layoffs and leadership transitions. The hospitality industry saw -1.4% decrease in jobs equating to 1,600 positions lost during 2024. Portland’s peer regions (Denver, Milwaukee, Minneapolis, Sacramento, and Seattle) experienced sharp job losses during the pandemic, followed by a steady rebound. However, most, including Portland, have struggled to move significantly beyond their pre-pandemic employment peaks, with only Sacramento and Denver making notable gains. While all peer cities saw GDP growth in 2023, Portland’s economy is uniquely volatile due to its heavy reliance on the semiconductor industry. Recent announcements of federal funding favoring other markets raise concerns that the region’s GDP could decline in the near future.

Until the region can implement policies and programs that bring costs down, Portland metro should expect to underperform its economic performance of decades past. Portland will continue to face longer-term challenges of an aging, low-fertility society, while seven in ten voters feel their taxes are too high and ultimately choosing to live in communities with lower costs and more abundant job opportunities. Downtown’s foot traffic remains down 40% due to fewer office workers and visitors. The areas with the strongest activities benefit from a balanced mix of residents, employees, and visitors, while Downtown shows no growth in its residential presence, highlighting a critical gap. The vibrancy of Portland and its Downtown and Central City is integral to the economic strength and vitality of our entire state. Policymakers must lead with a unified vision and consider the next phase of investment to bring vibrancy and livability back to Portland.

State of Economy Takeaways:  

• -4,820: Net population loss in Multnomah County in 2023.
• -9,600: Jobs lost in the Information, Financial Services, Manufacturing and Professional Service sectors in 2024.
• $105,800: Average income of individuals moving to Clark County, versus $73,540 for those moving to Multnomah County in 2022.
• 80th: Portland ranked second to last in national real estate attractiveness rating.

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State of Downtown Takeaways: 

• -25%: Portland office leasing rate is down compared to 2019 (600,000 square feet per quarter versus 790,000 square feet).
• 6th: Ranked last among peers for Central City visitor foot traffic.
• -21%: Portland’s Central City foot traffic compared to 2019.
• 80%: Share of visitors to Portland’s Central City that live within 20 miles.

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ORLA members wanting to get involved in a Portland area Regional Leadership Team should contact Makenzie Marineau, Government Affairs and Regional Leadership Teams Coordinator.