November 5, 2009 by squarefeetpdx
In keeping with Huey Lewis’ popular 80’s movie song “Back in Time”, it appears that is where commercial real estate (CRE) is headed. Over the past two years we have seen extensive damage from the devaluation of commercial real estate assets acquired during the peak years of 2006-2007. But now a new concern is rising that properties purchased in 2005 or earlier are at risk. If that concern pans out, then billions more dollars in commercial mortgage-backed securities are facing potential credit downgrades and future property transactions and loan reviews will be subject to greater scrutiny from investors and banks, ie it will be tough to buy a building.
The average price per square foot (or per unit for apartments) is either at or less than 2004 price levels:
Property Type 2004 2009
Office $164.02/SF $168.05/SF (even)
Industrial $80.90/SF $70.66/SF (13% less)
Retail $108.71/SF $83.70/SF (23% less)
Multifamily $86,487/Unit $70,352/Unit (19% less)
Bond rating agency Fitch expects real estate fundamentals to continue deteriorating for another 18 to 24 months despite a broader economic recovery. This decline is likely to result in ratings downgrades on otherwise proven CMBS deals. Though these potential downgrades will not have as significant an impact on the economy as post 2006 CMBS deals have, they will continue to delay any sort of commercial real estate stabilization prior to 2012.
Even though the economy has shown some positive momentum of late, several sectors of the commercial real estate industry have continued to drop. The hotel sector, no big surprise here, is the most volatile and has already seen revenues per available room decline by 20% since January 2009, with many industry experts anticipating a 50% decline before bottoming out.
Office vacancies have reached 15% nationwide and will continue to rise in 2010 as layoffs continue to trickle down. Central business districts continue to fair better than suburban submarkets (ex: Portland| CBD – 9%, Westside Suburbs – 17.7%, I-5 Corridor – 20.46%), but all landlords are facing big declines in rent, significant concessions (free rent), and increased vacant sublease space.
Source: CoStar Watch List
Posted in Forecast, Trends, Vacancies, commercial real estate, downsizing, lease, office brokerage, office space, rental rate, retail brokerage, square feet | Tagged square feet, office space, commercial real estate, cre, cmbs, rental rate, fitch, devaluation | Leave a Comment »
November 2, 2009 by squarefeetpdx
HealthDex (hospital/provider|managed care|equipment)
Central Business District
Dr. Linda Grounds – 1130 SW Morrison | 936 SF
Westside
VA NW Health Network – VA Medical Center | 1750 Blankenship Rd | 9,750 SF
WellPartner – PacTrust Biz Ctr | 7216 SW Durham Rd | 34,023 SF renewal
Vancouver
OptionCare – EastRidge Biz Park | 12117 NE 99th | 4,400 SF renewal
Transformations Spa MD – 650 N. Devine Rd | 2,208 SF
TechDex (apps|provider|hardware|var)
Central Business District
Chockstone – US National Bank Block | 309 SW Sixth Ave | 11,546 SF renewal
Vancouver
American Ultraviolet Co. – Columbia Tech Center | 1498 SE Tech Ctr | 5,156 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
Propel Insurance – Pioneer Tower | 888 SW Fifth | 9,428 SF
Yamhill Attorney’s Mgmt – Yamhill Plaza Bldg | 815 SW 2nd | 3,196 SF
650 Associates – Pioneer Tower | 888 SW 5th Ave | 9,325 SF renewal
Vancouver
P&G Associates – EastRidge Biz Park | 12119 NE 99th | 1,400 SF renewal
Airgas-Nor Pac – EastRidge Biz Park | 11900 NE 95th | 11,200 SF renewal
Precision Estimating – EastRidge Biz Park | 11800 NE 95th | 4,608 SF renewal
GovDex (government agencies)
Vancouver
WA State Auditors – EastRidge Biz Park | 9611 NE 117th | 2,868 SF
MediaDex (traditional|digital|research)
Eastside
Merida Latina Media Svs – 11300 NE HalseySt | 1,093 SF
Vancouver
Paradigm Graphics – EastRidge Biz Park | 9600 NE 126th | 4,800 SF expansion
Posted in Vacancies, commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, oregon, portland, rental rate, retail brokerage, square feet, start up, sublease, vancouver | Tagged airgas, american ultraviolet, batrud middleton, chockstone, lease, merida latina, office space, optioncare, p&g associates, precision estimating, propel insurance, rate per square foot, renewal, rental rate, sublease, transformations spa, wellpartner | Leave a Comment »
October 26, 2009 by squarefeetpdx
In an interesting turn of events, the “greening” of America has slowed down in at least one sector; commercial real estate. Why does this matter? Because commercial properties account for a significant portion of our carbon footprint and the continued push toward building designs that minimize that footprint are vital to achieving a respectable decrease in greenhouse gas emissions.
Based on a recent survey by the Urban Land Institute, the importance of climate change and alternative energy sources has diminished, at least temporarily, as a factor in real estate investment decisions. Other findings include:
- Lenders tend to view energy efficiency as an important bottom-line issue, focusing on reducing energy costs not emissions
- Most respondents are adopting a “wait-and-see” attitude with regard to business strategies involving climate change
- Environmental issues play a factor only when they produce an immediate return or mitigate investment risks
The fact that the economic stimulus funds aimed at reducing the carbon footprint of both new and existing buildings seems to have failed to entice many investors to “get with the program” only further demonstrates an increased scrutiny of bottom line costs as a result of the recession. Many are waiting for legislative regulation to shake out at the federal, state and local levels first. With so much still unknown about the impact of government on policies related to climate change, the approach by the lending community is one of extreme caution (particularly after a period of loose lending followed by a government clamp down).
Industry expert Patrick Phillip, CEO of ULI, predicts that green investing will gain relevance and importance as the market rallies from the downturn. As more information is collected on the performance of green projects delivered prior to the commercial crash, it will be easier to determine the impact on value for lenders and investors.
Source: CoStar.com
Posted in Forecast, Green Building, LEED, Trends, build to suit, building sale, commercial real estate, lease, new office, office space, square feet | Tagged square feet, office space, commercial real estate, office buildings, LEED, Green Building, sustainable practices, lending, Urban land Institute | Leave a Comment »
October 26, 2009 by squarefeetpdx
TechDex (apps|provider|hardware|var)
Central Business District
GarageGames – 618 Building | 618 NW Glisan | 6,500 SF expansion
Westside
InFocus – Triangle Corp Pk Bldg 2 | 13190 SW 68th Pkwy | 18,079 SF
RIM Tec – Oswego Towne Sq | 3 Monroe Pkwy | 3,567 SF
Zapproved – Sunset Center | 19075 NW Tanasbourne Dr | 1,869 SF
Phoseon – Evergreen Business Park | 7425 NW Evergreen Pkwy | 18,603 SF renewal
Vancouver
Netrush.com – Fisher’s Landing Retail Ctr | 16904 SE First St | 1,271 SF
HealthDex (hospital/provider|managed care|equipment)
Eastside
Western Pyschological & Counseling – Civic Plaza | 1700 NW Civic Dr | 4,597 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
Baker Ellis Asset Mgmt – Pacwest Center | 1211 SW Fifth Ave | 1,350 SF renewal
Westside
Southwest Financial – Parkside Biz Ctr | 8252 SW Nimbus Ave | 1,507 SF
First Choice Appraisal – Denney Square | 6700 SW 105th | 1,177 SF
Wel Group - Peterkort | 9755 SW Barnes Rd | 3,200 SF renewal
Eastside
RIS Insurance Services – Multnomah Plaza | 305 NE 102nd | 2,007 SF
Mount Scott Center – 9201 SW 91st Ave | 2,188 SF
Vancouver
Morris Bratt & Andersen – Rider Building | 108 E Mill Plain | 4,000 SF renewal
NonProfDex (charitable|education|trade assoc)
Central Business District
Collins Foundation – Riviera Plaza | 1618 SW First Ave | 4,599 SF renewal
Posted in Green Building, LEED, Trends, Vacancies, build to suit, commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, portland, rental rate, square feet, start up, sublease, vancouver | Tagged baker ellis, collins foundation, commercial real estate, first choice, garagegames, infocus, lease, morris bratt, office space, phoseon, relocation, renewal, rent per square foot, rental rate, RIM tec, RIS insurance, square feet, wel group, zapproved | Leave a Comment »
October 19, 2009 by squarefeetpdx
Posted in Trends, commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease, vancouver | Tagged aop technologies, collins companies, comcast cable holdings, congress center, cornell oaks, delta financial, entrix, mainz brady, marten law, office buildings, office lease rates, office spaces, per square foot, relocation, rental rate, square feet, sublease, xpand | Leave a Comment »
October 12, 2009 by squarefeetpdx
New building entrance
Mercy Corps finally unveiled their new headquarters (28 SW First) on Thursday, October 9, 2009. Located on the old Saturday Farmers Market site by the Burnside Bridge in Old Town, the project is a combination of old and new to create a building that totals 85,000 square feet at a cost of $37 million. The building has been certified LEED Platinum, the highest certification available, and contains numerous elements of recycled materials and sustainable systems including solar energy and water reclamation.
With a design team led by THA Architecture, the new building contains a gallery and a large open atrium with a unique staircase running up four stories. The building is home to the 160 staff members and is an open floor layout along with several small conference rooms around the perimeter. There is even a small, enclosed patio on the top floor for outdoor dining. Mercy Corps Northwest is located on the ground floor of the new building and will be providing aid to low income small businesses.
The older building is home to the Mercy Corps Action Center, a public education center designed to show visitors what everyday life looks like in locations around the world (think poverty or disaster stricken areas in need of our help).
Old building entrance
While the building is impressive in design, the reported occupancy cost is $19.00 per square foot due to subsidies from the City of Portland and other tax credits based on energy efficiency. Mercy Corps has a mere $7 million mortgage on the building as a result. This approach by the City was a strategy to retain Mercy Corps headquarters in Portland, Oregon.
Other large contributors include the Jeld Wen Foundation and Lemelson Foundation, who recently moved their offices from the Balfour Guthrie Building (733 SW Oak and former Energy Trust offices) to this new location.
Floating staircase
1st floor looking up
Posted in Green Building, LEED, Trends, build to suit, building sale, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet | Tagged city of portland, commercial real estate, headquarters, jeld wen, LEED, lemelson foundation, mercy corps, office lease, Old Town, portland development commission, Saturday Market, square feet, sustainable architecture, tha architecture, wells fargo | Leave a Comment »
October 12, 2009 by squarefeetpdx
Activity has definitely picked up post Labor Day, with many firms looking to upgrade their space now that rates are the lowest they’ve been in at least 3 years. The larger tenants are continuing to renew, such as Wells Fargo, but a few are making moves to newer space. McCormick & Schmick’s will be vacating the Morgan Building (720 SW Washington) for a brand new project in the Pearl District called Machine Works. This building has a more industrial look and feel to it, as opposed to the historic architecture of the Morgan Building, reflecting a change in company culture for the restaurant operator.
GeneralBizDex (consulting|finance|insurance|legal|other)
Westside
Hampton Management – Sunset Biz Park | 9600 SW Barnes | 24,056 SF
Southwest Financial Services – Parkside Biz Ctr | 8285 SW Nimbus | 1,507 SF
Central Business District
Wells Fargo – Montgomery Park | 2701 NW Vaughn | 128,032 SF renewal
McCormick & Schmick’s HQ – Machine Works | 1455 NW Northrup Ave | 19,250 SF
Whipple & Duyck – Crown Plaza | 1500 SW First Ave | 2,751 SF
Vancouver
Bonneville Billing & Collections – Eastridge Biz Pk | 12013 NE 95th | 2,240 SF renewal
NonProfDex (charitable|education|trade assoc)
Central Business District
Oregon Jewish Museum – 1953 NW Kearney St | 6,400 SF
Eastside
Mentor Oregon – Multnomah Plaza | 305 NE 102nd Ave | 7,590 SF
TechDex (apps|provider|hardware|var)
Westside
SAP America – Triangle Corp Park | 13190 SW 68th | 6,624 SF downsize
Eastside
Celestial Solstice – Ford Building | 2505 SE 11th | 1,866 SF
Central Business District
Inflow Systems – 11000 Barbur Blvd | 3,000 SF
DesignDex (A/E|consulting|graphic d)
Vancouver
LD Jellison Inc - Eastridge Biz Park | 11805 NE 99th St | 4,320 SF
Radio Popper – Columbia Shores | 501 SE Columbia Shores | 1,752 SF
MediaDex (traditional|digital|research)
Westside
Coyote Logistics – Wilsonville Town Ctr | 29100 SW Town Ctr Loop | 4,098 SF
HealthDex (hospital/provider|managed care|equipment)
Westside
River City Eyecare – Mount Scott Center | 9201 SW 91st | 2,188 SF
Posted in Green Building, LEED, Trends, Vacancies, commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease, vancouver | Tagged bonneville billing, celestial solstice, columbia shores, commercial real estate, coyote logistics, downsizing, ford building, hampton affiliates, hampton management, inflow systems, LD jellison, lease, lease rates, leasing, mccormick and schmick's, mentor oregon, new offices, office space, oregon jewish museum, radio popper, rate per square foot, renewal, SAP, square feet, wells fargo, Whipple Duyck | Leave a Comment »
October 5, 2009 by squarefeetpdx
Posted in commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease, vancouver | Tagged bank of america, benefit partners, columbia tech center, east2west studios, Eastridge Business Park, epicor, H5 ventures, kruse woods II, lease, lease rates in portland, new office space, northwest reading clinic, oak tree insurance, office space, pacific corporate center, rental rates, sacagawea, square feet, washington state auditors office | Leave a Comment »
September 28, 2009 by squarefeetpdx
It appears that post Labor Day activity has picked up as businesses seem to be over the panic of a dropping market. Tenants continue to be cautious and careful with their expenses, but also recognize some excellent opportunities to secure low market rents and even make moves into higher quality space.
DesignDex (A/E|consulting|graphic d)
Central Business District
Ash Creek Associates – 3015 SW First Ave | 8,800 SF
MediaDex (traditional|digital|research)
Central Business District
EnviroMedia Social Marketing - Skidmore Bldg/White Stag Block | 24 NW First | 777 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
Talon Group LLC – Skidmore Bldg/White Stag Block | 24 NW First | 1,166 SF
North Star Consultants – 5100 SW Macadam | 7,625 SF renewal
Eastside
Northland US LLC – 205 Plaza | 10570 SE Washington | 2,459 SF
Minarik Corp – Ambassador Center | 7515 NE Ambassador Pl | 3,426 SF renewal
Griffin Underwriting – Airport Biz Ctr | 6645 NE 78th | 990 SF renewal
Westside
Scheller Financial – Pacific Parkway Ctr | 12909 SW 68th | 2,936 SF
HealthDex (hospital/provider|managed care|equipment)
Central Business District
Oregon Male Clinic – 9320 SW Barbur Blvd | 1,799 SF
Westside
NDS Surgical Imaging – BG Plaza | 3800 SW Cedar Hills | 969 SF
Orbit Medical – Scholls Business Ctr | 10150 SW Nimbus | 2,462 SF
TechDex (apps|provider|hardware|var)
Central Business District
InFlow Systems – 11000 SW Barbur Blvd | 3,000 SF
Westside
ColumbiaSoft – Pacific Corp Ctr | 15495 SW Sequoia Pkwy | 6,338 SF
Posted in Green Building, LEED, commercial real estate, downsizing, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, sublease | Tagged Ambassador Center, ash creek associates, available space, BG Plaza, columbiasoft, commercial real estate, enviromedia, griffin underwriting, inflow systems, lease, minarik, nds surgical, north star consultants, office buildings, office space, orbit medical, pacific corporate center, rent per square foot, scheller financial, scholls business center, talon group, vacancy, white stag block | Leave a Comment »
September 24, 2009 by squarefeetpdx
According to a new report from Costar News, the number of properties under distress and delinquent loans are up by 50% in 2009. Some eye-popping statistics include:
Specially Serviced CMBS Loans – loans that are delinquent or reached maturity without pay off or have ongoing issues with credit problems involving tenants or borrowers.
Jan. 2009 – $8.2 Billion
Sept. 2009 – $46.9 Billion
Number of distressed office buildings in U.S. – Buildings that were 60% vacant or more.
Jan. 2009 – 19,600
Sept. 2009 – 31,000
Plummeting Property Values – Office, retail and industrial/flex properties have lost between 15% and 35% of their value since 2007.
Year Office Bldgs Retail Bldgs Industrial/Flex Bldgs
2007 $219/SF $178/SF $61.50/SF
2009 $142/SF $132/SF $52.00/SF
As businesses have disappeared or made major cutbacks, the demand for space has declined significantly. In the first two quarters of 2007, office properties saw a net absorption of 41.8 million square feet. By comparison, in the first two quarters of 2009, tenants have returned 40.9 million square feet of space, nearly wiping out any gains over the past two years. Industrial/flex (think close in Eastside or the Sunset Corridor) properties have faired worse nationally, with net absorption of 94.1 million in the first two quarters of 2007, but gave back even more in the first two quarters of 2009 with 97.5 million.
All of this negative activity has created a swelling inventory of buildings with 60% vacancy or more. Oregon ranks 25th for the number of distressed properties (office, retail, and industrial/flex) by state. With 994 total properties under distress, we are fairing much better than the number one position holder, California, which has 80,734 total distressed properties. The lowest is Wyoming with 41 distressed properties. Our neighbors to the north (WA) are number 19 on the list with 1,404 distressed properties.
Posted in Forecast, Trends, Vacancies, building sale, commercial real estate, downsizing, lease, office brokerage, office space, oregon, portland, retail brokerage, square feet, vancouver | Tagged square feet, vacancy, industrial, retail, cmbs, office, commercial loans, default, delinquency, plummeting values, costar, distressed properties, specially serviced loans, flex | Leave a Comment »
November 3, 2008 by squarefeetpdx
Okay, so when people ask me what I do and I say “commercial real estate”, they typically respond with “ohhh” and then move on to someone else’s professional pursuits. Admittedly, the daily processes involved with pulling together a good commercial real estate package can be mundane at times. But at its core, the industry is all about sharing information. This is where the business becomes intriguing and fun; knowing what businesses are coming and going, contracting and growing, and how much it cost. On top of this, you get an unbelievable education on the types of niche’ businesses in the market (see our Piece of the PDX Pie monthly feature at the bottom).
Fascinating like the study of blackholes or earthworm reproduction, well no, but being behind the scenes of what makes Portland’s business environment tick is definitely cool. So, with this said, my partner and I thought we would share a little of the “behind the scenes” activity with readers.
For ease of use, we have created a few test indices (by industry) of various transactions in the Portland market. We can add industries and welcome suggestions for other information/statistics you would find helpful or interesting. Our intention is to update this information as it occurs, with this initial post reflecting transactions dating back to the beginning of the Third Quarter 2008 (July 1, 2008).
We have also included some market comps so that you can see where deals are being struck in the various submarkets of Portland/Vancouver.
Comps Around Town
|
|
Submarket
|
Size
|
Term
|
Rate
|
Free Rent
|
New/Renew
|
Bldg Type
|
|
|
Beaverton
|
6500
|
5 yrs
|
$17.00
|
none
|
New
|
Class B
|
|
|
CBD
|
3800
|
5 yrs
|
$24.00
|
2 mths
|
Renew
|
Class C-H
|
|
|
CBD
|
3600
|
3 yrs
|
$21.00
|
2 mths
|
New
|
Class B
|
| |
Eastside
|
4100
|
5 yrs
|
$19.00
|
none
|
New
|
Class C
|
|
|
Vancouver
|
9500
|
10 yrs
|
$24.00
|
6 mths
|
New
|
Class A
|
TechDex (apps|hardware|provider|var)
Central Business District
TripWire – One Main Place | 101 SW Main St. | 33,062 SF
Iterasi – Pioneer Arts Building | 715 SW Morrison St. | 4,141 SF
CompanionLink - One Main Place | 101 SW Main St. | 3,000 SF
Infinity Internet – Portland Medical Cntr | 511 SW 10th Ave. | 10,000 SF
Westside
Pixelworks
- Durham Plaza | 16650 SW Boones Ferry | 4,875 SF
Corrigo – Tualatin Commons | 8215 SW Tualatin Sherwood Rd. | 8,178 SF
Lunarr – 5 Lincoln | 10200 SW Greenburg Rd. | 2,660 SF
Prince Telecom – 14215 NW Science Park | 3,525 SF
Linden Technologies – Cornell West | 1500 NW Bethany Blvd. | 1,569 SF
Trivium Systems – Twin Oaks Exec. Cntr | 1865 NW 173rd Plc. | 1,288 SF
Healthco Information Systems – 7657 SW Mohawk St. | 9,119 SF
SQLSoft Inc. – Cornell West | 1500 NW Bethany Blvd. | 5,235 SF
Veicon Technology – WCI Building | 19720 NW Tanasbourne Dr. | 2,325 SF
Retail Dimensions – 4800 SW Griffith Dr. | 1,680 SF
Cypress Semiconductor – Creekside Corp Park | 9125 SW Gemini Ave. | 4,300 SF
Comsys – 3 Lincoln | 10220 SW Greenburg Rd. | 9,156 SF
MediaDex (traditional|digital|research)
Central Business District
Harris Interactive – Riviera Plaza | 1618 SW First Ave. | 2,727 SF
RumbleFish – OMCC | 107 SE Washington St. | forthcoming
Downstream Digital – Fremont Place | 1650 NW Front Ave. | 16,521 SF
Pyramid Communications – 526 NW 13th Ave. | 3,630 SF
Audient Consulting – OMCC | 107 SE Washington St. | 2,696 SF
Yellowpages.com – One Main Place | 101 SW Main St. | 6,956 SF
Liquid Agency – Triangle Building | 1800 NW 16th Ave. | 2,971 SF
Lakonic Partners Inc. – Mikado Building | 117 SW Taylor St. | 3,610 SF
Westside
Rubicon Interactive – Pacific Corp Center | 15350 SW Sequoia Pkwy. | 2,709 SF
MKTX Inc – Creekside Corporate Center | 8205 SW Creekside Plc. | 2,210 SF
MSN Communications – Kruse Woods II | 5335 Meadows Rd. | 2,515 SF
Database Marketing – Cascade Plaza West | 12665 SW Center St. | 6,833 SF
Angelvision – Hilltop Business Cntr | 7300 SW Hunziker Rd. | 5,264 SF
ReachLocal Inc. – 1 Lincoln | 10300 SW Greenburg Rd. | 4,374 SF
Eastside
Seamless Event Solutions – 12838 NE Airport Way | 5,760 SF
DesignDex (A/E|graphic d)
Central Business District
Hiromi Ogawa Architects
- OMCC | 107 SE Washington St. | 1,200 SF
Dull Olson Weekes – Federal Reserve Building | 915 SW Stark St. | 13,624 SF
Robertson Architecture Inc. – 1512 SW 18th Ave. | 2,300 SF
Walker Macy – Failing Building | 111 SW Oak St. | 11,107 SF
Westside
PNG Environmental – Hampton Oaks | 6655 SW Hampton St. | 1,960 SF
Geoengineers – Pacific Corp Center | 15055 SW Sequoia Pkwy. | 8,638 SF
Heery International – Sunset Business Park | 9600 SW Barnes Rd. | 4,143 SF
West Yost Associates – Lakeside Center | 8100 SW Nyberg Rd. | 5,315 SF
Smith Monroe Gray – Cascade Square | 8628 SW Cascade Ave. | 8,052 SF
Eastside
Locating Inc. – Airport Business Center | 6601 NE 78th Ct. | 4,121 SF
SustainDex (Environmental|Sustainable|Clean/Bio Tech)
Central Business District
Ecology and Environment Inc. – Oregon Trail Bldg | 333 SW Fifth Ave. | 7,806 SF
Conservation Services Group – Market Square | 1515 SW Fifth Ave. | 3,782 SF
Brookfield Power – Desoto Building | 720 NW Davis St. | 6,403 SF
Vestas – 2000 SW First | 2000 SW First Ave. | 12,103 SF
rePower USA Corp – One Main Place | 101 SW Main St. | 1,557 SF
Garrad Hassan America Inc – Oregon Trail Bldg | 333 SW Fifth Ave. | 1,855 SF
Westside
Particle Measuring Systems Inc.
- 1100 NW Compton Dr. | 1,518 SF
PIECE OF THE PDX PIE! - October 2008
Plas2Fuel – A privately-held alternative energy company who converts mixed
waste plastics into synthetic crude oil and other valuable petrochemical
products. Finally you can take all of those old baby toys and use them to fuel
your Escalade!
Authors/Experts
Kristin Hammond and Mark McFarland have over 30 years of combined experience representing tenants with commercial real estate requirements. At Pacific Real Estate Partners (PREP), we help businesses assess and respond to their real estate priorities in a consistent, efficient, and cost effective manner. For more background, click on the Authors tab at the top of the page.
Posted in commercial real estate, office brokerage | Tagged brokerage, buildings, CBD, downtown, lease, NNN, office space, properties, rates, real estate, relocate, rent, square feet, submarket | Leave a Comment »
November 4, 2008 by squarefeetpdx
Alas, in challenging economical times many businesses are faced with the tough decision of making cuts to their bottom line. In commercial real estate terms this often means either downsizing office space or subleasing. So, though it gives me no pleasure, we will also list the latest companies (within the industries we are tracking) who have made a decision to reduce operations/costs via office space adjustments (aka they are giving back square footage in the form of a sublease or direct lease availability).
TechDex (apps|hardware|provider|var)
Westside
Business Objects (SAP) – 13190 SW 68th Pkwy | 18,400 SF downsize
MagnaChip Semiconductor – 5285 Meadows Rd | 12,500 SF sublease
Tektronix – Building 58 | 2540 SW Alan Blumlein Way | 196,000 SF lease
Tektronix – Building 55 | 14200 SW Karl Braun Drive | 84,126 SF lease
Vancouver
Hewlett Packard – Building 1 | 18110 SE 34th | 64,580 SF lease
Posted in commercial real estate, downsizing, office brokerage, sublease | Tagged downsize, square feet, sublease | 1 Comment »
November 10, 2008 by squarefeetpdx
Here’s the latest movement around Portland as of Friday, November 7th, 2008.
TechDex (apps|hardware|provider|var)
Central Business District
Seguro Group – 6342 SW Macadam Ave. | 3,620 SF
Hitachi Consulting – US Bancorp Tower | 111 SW Fifth Ave | 3,328 SF added
Westside
Stanley Convergent Security – Pacific Corp Ctr | 15495 SW Sequoia Pkwy | 6,145 SF renewal
MediaDex (traditional|digital|research)
Central Business District
Pinpoint Logic – 1104 NW 15th Ave | 4,599 SF
Sasquatch Advertising – Water Tower | 5330 SW Macadam Ave | 1,754 SF
Westside
Paramount World Group
- Beaverton Commons | 14355 SW Allen | 1,135 SF
In Other News….
Looks like Amazon.com is the latest to jump on the Columbia River Gorge bandwagon and set up shop along the river for a giant back office data center. We know Google started the trend by establishing The Dalles as a server complex location for 200 employees who like the cold winter and hot summer. Though officials will not confirm on the basis of a confidentiality agreement in place, the new $35 million complex under construction in Boardman, Oregon along I-84 is expected to be 116,700 SF in Phase One and another 102,000 SF in Phase 2. Inquiries are to be directed to Patricia Smith, Director of Amazon.com Corporate Affairs in Seattle (hence the Amazon.com occupancy guess).
Posted in commercial real estate, data centers | Tagged amazon.com, columbia river gorge, commercial real estate, google, hitachi, seguro | Leave a Comment »
November 13, 2008 by squarefeetpdx
A few more unwanted donations in the form of space put back on the market. Well it is the season of giving after all.
MediaDex (traditional|digital|research)
Central Business District
Compass Rose Media – Albers Mill | 1200 Naito Pkwy | 2,621 SF sublease
TechDex (apps|hardware|provider|var)
Westside
InFocus – 27500 SW Parkway (Wilsonville) | 140,000 SF sublease
Posted in Uncategorized | Tagged square feet | Leave a Comment »
November 25, 2008 by squarefeetpdx
After a lull in activity, there are a few companies making moves and “taking down” square footage. Alas, with this comes the sad news of layoffs here and there (Iovation and Strands as well as the closure of Ambric). Try not to get too glum, Portland is still positioned to better endure this economic uncertainty than most other cities in the U.S. In fact, Forbes ranked us the 4th best city to weather the economic storm (see Forbes.com).
TechDex (apps|hardware|provider|var)
Westside
Provider Advantage – 1915 NW AmberGlen Parkway | 5,157 SF
DesignDex (A/E|consulting|graphic d)
Westside
AFMS LLC – Lincoln Tower | 10260 SW Greenburg Rd. | 3,295 SF
PIECE OF THE PDX PIE! - November 2008
Creative Brand Communications – This snappy group of designers/strategists is growing super-fast by specializing (can you believe this?) on the financial services sector. Their collective experience within the industry has positioned them to help clients in the ailing sector deal with unprecedented challenges to get their message out to the market. Nice.
Posted in commercial real estate | Tagged commercial real estate, creative brand, downsize, forbes, lease, office space, square feet, sustainable, technology | 1 Comment »
December 1, 2008 by squarefeetpdx
Another Thanksgiving passed us by and, in the wake of all things turkey, left us with just a few done deals for the week.
For the past two years, December has been a very busy month with many companies trying to secure office leases before year end due to tax and other benefits. However, this year we anticipate a slower than usual December as many companies are in a holding pattern. Several large firms are simply renewing for a one year period with the hopes of a better environment next December, 2010. There are a few brightspots however, including GarageGames move into the Portland market up from Eugene.
TechDex (apps|hardware|provider|var)
Central Business District
GarageGames.com - 618 Building | 618 NW Glisan | 2,475 SF
Axiom Group – Willamette Place | 6420 SW Macadam | 3,300 SF
Westside
Mania Technologie
- 5289 NE Elam Young Parkway | 5,289 SF
Stanley Convergent – Pacific Corp Ctr | 15495 SW Sequoia Pkwy | 6,145 SF
Vancouver
Wilder Technologies – Creekside Biz Park | 6101-A East 18th | 3,200 SF
SustainDex (Environmental|Sustainable/Clean/Bio Tech)
Vancouver
Christ Water Technology – Quad 205 | 4018 NE 112th, D-2 | 1,036 SF renew
In Other News….
Finally announced publicly today (the folks in commercial real estate have been tracking this big tenant for a while), Vestas Wind Systems A/S intends to occupy a 500,000 SF headquarters building in Portland, consolidating numerous operations throughout the area into one location.
Congratulations to local start up EarthClass Mail for successfully opening a retail location in Los Angeles, offering a Santa Monica mailing address.
Posted in commercial real estate, office brokerage | Tagged axiom, clean tech, commercial real estate, Creekside Business Park, earth class mail, garagegames, hardware, hillsboro, lease, location, mania technologie, new office, office space, portland, Quad 205, rate, relocated, software, square feet, technology, vancouver, vestas, wilder technologies | 2 Comments »
December 8, 2008 by squarefeetpdx
Wow! It was a slow week of activity for commercial real estate office transactions in Portland last week. Again, the majority of transactions are in the healthcare industry (lots of clinic expansions and doctor offices) and financial services (mostly moving into more economical space). Only a few groups in the indices I track made moves, with manyothers holding until January 2009. There are a fierce few who have opted to move forward this month. Rumblings on the street are that RumbleFish is into the design phase of their new offices at Olympic Mills (est. 8,000 SF) and currently have huge plans for their space – can’t wait to see this one.
TechDex (apps|hardware|provider|var)
Central Business District
Opensourcery – Lovejoy Opsis Bldg | 1636 NW Lovejoy | 6,741 SF
Westside
Goodman Networks – Hilltop Business Ctr | 7360 SW Hunziker Rd | 4,754 SF
SustainDex (environmental|sustainable|clean/bio tech)
Eastside
Organically Grown - Commerce Park Clackamas | 16123 SE 98th | 27,166 SF
In Other News…
With all the chatter about Clearwire and the forthcoming WiMax unleashed in Portland, I decided to list the newest stores to open here. I even took a call last week from Clearwire inquiring about installing equipment on a building I have listed in The Pearl District (apparently they are moving rapidly.)
Clackamas Promenade | 8868 SE Sunnyside Rd. | 1,600 SF
1512 NE Broadway (near DOC and Mimi & Madre) | 1,500 SF
Uptown Shopping Center | NW 23rd Place | 2,257 SF
Asa Flats & Lofts | 1233 NW Lovejoy | 1,356 SF
PIECE OF THE PDX PIE! - December 2008
LeanPath – This unusual start-up has developed a program (ValueWaste) aimed at helping large scale food service operators and other hospitality industry players reduce food waste and costs and operate in a more sustainable manner. What a totally unique business with a great idea.
Maybe they could create a program that would show chain restaurants what appropriate portion servings look like? ie. less than 3 lbs. of food on a plate. Dare to dream.
Posted in commercial real estate, start up | Tagged clearwire, commerce park, commercial real estate, goodman networks, hilltop business center, leanpath, lease, office space, pinpoint logic, portland offices, reid building, rumblefish, square feet, sublease | Leave a Comment »
December 10, 2008 by squarefeetpdx
It appears the Wall Street Journal has taken notice of the Portland-Vestas Wind Systems love affair, announcing the 500,000 SF headquarters decision I blogged about in an earlier post.
Vestas has expanded into an additional 18,000 SF at Harrison Square (1800 SW First Avenue) bringing their total square footage across three buildings between Naito Parkway and First Avenue to around 77,000 SF. While this is some significant square footage, it is hard to believe that they would actually need 500,000 SF (that’s larger than the Fox Tower). There are still some major hurdles to overcome and who knows what this deal will look like when it is finally completed. My guess, something closer to 300,000 SF and a 2010 construction start date. Especially if they want to be in or close to downtown.
As for the rates quoted in this article, they reflect an average including all types of office buildings across the entire market (downtown, eastside, westside). The average asking rate for just downtown buildings, all types, is actually closer to $22.75 with a vacancy rate of 7.7%. As you can see, the downtown (CBD is our preferred acronym) is much tighter than this article would have you believe. This is a good thing. It means more businesses are choosing to locate in our downtown and take advantage of all the improvements made over the last five years.
Posted in Green Building, LEED, build to suit, commercial real estate, headquarters | Tagged CBD, portland, rent, square feet, vacancy rate, vestas, wall street journal | Leave a Comment »
December 15, 2008 by squarefeetpdx
It was another slow week of lease transactions in Portland. The majority of the companies announcing moves fell under the financial services and insurance categories interestingly enough. The largest deals were Paulson Capital, who renewed 17,136 SF at the Paulson Building (811 NW Naito); Premier Source LLC, who leased 13,321 SF at the Spaulding Building (319 SW Washington); and The Government of Japan, who renewed 11,604 SF at Wells Fargo Center (1300 SW Fifth). It will likely slowdown considerably more this week and not pick back up until after the first of the year.
MediaDex (traditional|digital|research)
Central Business District
OnPR Inc. – Morgan Building | 720 SW Washington St. | 1,417 SF
Westside
Madsense – 14705 SW Millikan Way | 2,623 SF | $817,000
DesignDex (A/E|consulting|graphic d)
Central Business District
Staccato Design – Madison Condos | 1140 SW 11th Ave. | 6,193 SF
Paragon Consulting – Unitus Plaza | 1300 SW Sixth Ave. | 2,750 SF
Posted in commercial real estate, office brokerage | Tagged beaverton, leased, madsense, morgan building, office buildings, office space, paulson, portland, real estate, relocated, spaulding building, square feet, square foot, staccato, unitus plaza, wells fargo center | Leave a Comment »
December 19, 2008 by squarefeetpdx
Sublease Space Chokes Downtown Chicago*
Companies have put more than 3 million sq. ft. of office sublease space on the market in downtown Chicago through the third quarter of 2008, marking a three-year high, according to locally based MB Real Estate. Nearly 1 million sq. ft. of new sublease space was added in the third quarter alone, and this does not bode well for the market’s fundamentals in 2009, as three more office towers are scheduled to deliver. Excluding sublease space, the downtown office market could see its 11.4% vacancy today increase to nearly 15% in 2009.
By comparison, Portland actually leased back 30,719 sq. ft. in the Third Quarter ending with only 169,764 sq. ft. of vacant sublease space in the downtown (Central Business District) submarket. The sublease vacancy rate dropped from 7.5% at the end of the Second Quarter to 7.3% by the end of the Third Quarter. We predict a slight uptick in the Fourth Quarter, though nothing on par in significance with that of Chicago and other major cities in the U.S.
*Source:National Real Estate Investor, 12/19/08
Posted in commercial real estate, downsizing, headquarters | Tagged absorption, chicago, downsizing, square feet, sublease | 1 Comment »
January 5, 2009 by squarefeetpdx
Green News is Good News
Portland’s commercial real estate market is positioned to “roll through the downturn” according to market analysts. We should see more activity in 2009 for commercial real estate because our market is performing better than the national average and real estate is cheaper in comparison to other markets in the western half of the U.S.
Oregon is also poised to benefit significantly from a stimulus package aimed at sustainable business practices. According to a University of Massachusetts Amherst report titled Green Recovery, the passage of a short-term $100 billion green economic stimulus package could net Oregon $1.2 billion and 27,307 jobs. Here’s hoping for a better, less greedy green in 2009.
Now, on to the activity indices for Portland. With 2008 over and commercial real estate activity at a lull in December, a few groups cinched up space by year end and start out 2009 with shiny, new digs.
TechDex (apps|hardware|provider|var)
Central Business District
Crowd Factory- Oregon Trail Building | 333 SW Fifth Ave. | 4,396 SF
Lush Productions – Banfield Plaza | 7931 NE Halsey | 1,615 SF
Westside
Columbia Soft – 1 Lincoln | 10300 SW Greenburg Rd. | 7,206 SF
NetBiz Inc. - 7604 SW Mohawk St. | 7,050 SF | expansion
Lasso NW – 8060 SW Pfaffle St. | 5,097 SF
MediaDex (traditional|digital|research)
Central Business District
Oliver Wyman – Bridgetown Printing | 1621 NW Thurman | 11,036 SF | renewed
Eastside
Lush Productions – Banfield Plaza | 7931 NE Halsey | 1,615 SF
Dun & Bradstreet – Lloyd Center Tower | 825 NE Multnomah | 1,568 SF
Westside
PacBlu Inc. – 1 Lincoln | 10300 SW Greenburg Rd. | 1,081 SF
SustainDex (environmental|sustainable|clean/bio tech)
Central Business District
PECI – Fifth Ave Bldg | 1400 SW Fifth | 2,889 SF | expansion
Eastside
Gdiapers – 2808 NE Martin Luther King Jr Blvd. | 4,615 SF
Idexx - Ambassador Ctr | 7525 NE Ambassador Place | 5,057 SF
Posted in commercial real estate, start up | Tagged columbia soft, crowd factory, gdiapers, idexx, lasso, lease, lush productions, netbiz, peci, square feet | Leave a Comment »
January 14, 2009 by squarefeetpdx
Welcome to the new year! Our Year End report will be out shortly and will provide a good summation of where the Portland market finished in 2008 and where it is likely to go in 2009.
One question I am frequently asked that I would like to address is a question regarding rents dropping as we move through a recession. Indeed, in some submarkets (Westside for instance), rents are dropping and will continue to do so until there is stablization. This is due to an oversupply of inventory and less demand.
However, in the Central Business District, demand remains high and supply is not excessive. Additionally, keep in mind that any building which traded ownership in the last two years (many of them downtown) was underwritten with rent roll assumptions based on then current asking rates. A landlord can’t just lower rents without scrutiny from any and all investors (ie .banks) involved. They are more likely to give what we call “concessions” because this will not impact their average achieved rate for the building. Concessions include free rent, improvement allowances and additional parking spaces.
TechDex (apps|hardware|provider|var)
Central Business District
LoanRefine.com – 1940 NW 24th Ave. | 3,500 SF
New Relic – Commonwealth Bldg | 421 SW Sixth | 1,287 SF
Westside
Fibre Sensys – Suntech Corp Park | 2925 NW Aloclek Dr. | 31,372 SF
Time Data Corp – Willamette Crossing | 8995 SW Miley Rd. | 2,130 SF
MediaDex (traditional|digital|research)
Central Business District
Empire Group – Lovejoy Square | 930 NW 14th | 4,000 SF
DesignDex (A/E|consulting|graphic d)
Vancouver
Kennedy/Jenks Consultants – Park Tower Addition | 20 NE Park Plaza | 1,756 SF
PIECE OF THE PDX PIE ! – January 2009
Mission Control – Portland is has become a mecca for the digital creatives and this group of online editors and graphic artists is a snazzy little post production outfit, way too cool for school. Their space is amazing, with six edit suites, a fancy Flame suite (high end effects), and a surround sound theater on the perimeter walls. To finish things off, they have a big ole’ bar and kitchen in the center of the office. Definitely a unique space designed to make very long hours comfortable for clients and staff.
Posted in commercial real estate, office brokerage, start up | Tagged abatements, close in NW, concessions, empire group, fibre sensys, hillsboro, kennedy/jenks, lease, loanrefine.com, mission control, office space, offices, pearl district, portland, rent decrease, square feet, time data corp, vancouver | Leave a Comment »
January 20, 2009 by squarefeetpdx
So according to a recent report from a large, national commercial real estate firm, Portland is the No. 2 office market in the nation. What does that mean? Well, I don’t really know what the basis for the rankings were, but I would concur that our office market is not experiencing the drastic rent changes that other markets are, such as New York, Phoenix and Los Angeles. But our market tends to lag behind the national trends by about six months, so come February we may start to see some more significant rent decreases, particularly in the suburbs. We do not have an excess of supply in the CBD right now, which is helping to keep us from spiraling downward, but in 2010 we’ll see another major high-rise delivered and things could get a little “twitchy” if the economy hasn’t started recovering by then.
TechDex (apps|hardware|provider|var)
Westside
Nikon Precision – Sunset Corp Park | 22845 NW Bennett | 9,155 SF
SiOnyx – Parkside Biz Center | 8275 SW Nimbus | 3,185 SF
TKO Solutions – One Centerpointe Drive | 2,443 SF
Vancouver
Apple – The Columbian | 515 Esther St. | 6,000 SF
DesignDex (A/E|consulting|graphic d)
Westside
Western Architectural – Lincoln Center | 10220 SW Greenburg | 3,910 SF
Comps Around Town
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Submarket
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Size
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Term
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Rate
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Free Rent
|
New/Renew
|
Bldg Type
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|
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Tualatin
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3400
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2 yrs
|
$22.50
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1 mth
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Renew
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Class A
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CBD-Pearl
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4700
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5 yrs
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$18.50
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1 mth
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New
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Class C-H
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CBD
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8200
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7 yrs
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$24.00
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2 mths
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New
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Class A
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Eastside
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1150
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5 yrs
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$22.00
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none
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New
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Class B
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Posted in commercial real estate, office brokerage, office space, start up, sublease | Tagged apple, architectural, brokerage, commercial properties, commercial real estate, lease, leased, Nikon, office buildings, office space, SiOnyx, square feet, sublease, TKO Solutions, work space | Leave a Comment »
January 26, 2009 by squarefeetpdx
I came across an interesting report called “The Best Places in the World to Buy Real Estate” (Forbes online http://tinyurl.com/crvlr2). Interestingly, it had Houston ranked 9th overall for strong office space demand and rental rates up from $21.06 in 2006 to $29.00 in 2009. The winner is Washington D.C., who has the US government pouring millions into the local economy through party change and attrition as well as having an extremely low unemployment rate of -4.1%. This is the first year in several that London was not at the top spot (No. 2) and this shift was attributed to an overbuilt office space market based on demand in previous years.
The list of best markets for a buyer are:
- Washington D.C.
- London
- New York
- Tokyo
- Shanghai
- San Francisco
- Lon Angeles
- Paris
- Houston
- Singapore
So, there you have it, a global view of where to buy space and set up shop. I’m leaning toward Singapore because it is so clean. Now on to our weekly review of moves in Portland.
TechDex (apps|hardware|provider|var)
Westside
X5 PDX – 1 Lincoln | 10300 SW Greenburg Rd. | 1,040 SF
NXREV Inc. – Griffith Park Corp Ctr | 4900 SW Griffith Dr. | 1,011 SF
EthicsPoint - 6000 Meadows | 6000 Meadows Rd. | 22,450 SF
Another Semi Conductor Property Hits the Market
After accelerating the retirement of all 200mm fab plants, the Hynix semiconductor facility in Eugene, Oregon hit the market this week with 1.2MM square feet on 200 acres for sale. This includes 173,000 square feet of Class 1, Class 1k and Class 10k clean room space (which is incredibly expensive space to build out and thus, worth a lot to a user who needs it). No asking price is disclosed, which is typical of such a large asset disposition, but an educated guess puts around it between $30-$40M. This is similar to the real estate HP has up for sale just over the river in Clark County (750,000 SF on 200 acres), and that property has been on the market for well over a year – though there is strong buyer interest circling at this time.
Posted in building sale, commercial real estate, office brokerage, office space, start up | Tagged 1 lincoln, clean room, commercial, ethicspoint, griffith park corp center, hynix, kruse way, lease, nxrev, office space, offices, real estate, square feet, x5pdx | Leave a Comment »
January 28, 2009 by squarefeetpdx
National Real Estate Investor Online has been conducting an online poll of professionals in the industry. As you can see from the results below, most of us believe a turn in CRE sales activity is not likely before 2010. We are still unsure where bottom is on value and, of course, any infusion of money to promote lending activity will likely take 6 months thereafter to truly impact the market.
(532 participants as of 1/28/09, 11:20am)
When do you expect the volume of commercial real estate property sales to pick up once again?
| Sometime beyond the second quarter of 2010: 27% |
Posted in Trends, commercial real estate, office space | Tagged commercial real estate, cre, recovery, value | Leave a Comment »
February 2, 2009 by squarefeetpdx
To kick off February 2009, I read an industry article (http://tinyurl.com/deq285) on the current conditions of commercial real estate investment and construction spending on a national scale. We took an astounding nose dive in the Fourth Quarter of 2008 , down by 19.1% compared to a decrease of just 1.7% one quarter prior. Clearly, the Fourth Quarter of 2008 hit hard and it appears things are continuing to slide. As always, we caution firms considering a commercial purchase as we have not hit the bottom just yet.
Portland still has some major office building projects under construction, most notably First and Main (at the westside head of the Hawthorne Bridge) and Park Avenue West (that big hole across from Nordstroms). But both of these projects don’t deliver before 2010.
TechDex (apps|provider|hardware|var)
Central Business District
GigaPix Systems – Aronson Campbell Bldg | 2200 NW Savier | 8,000 SF
EZ Wireless – 2860 NW 29th Ave. | 4,615 SF
Westside
A-Cti Answerconnect - One Warm Springs | 8050 SW Warm Springs Dr. | 7,412 SF
Comcast - Tektronix Bldg 48 | 14243 SW Terman Rd. | 118,612 SF
Leupold & Stevens – Fry Warehouse | 5805 SW 107th | 20,000 SF
Vancouver
Office Ally – 16703 SE McGillivray Blvd. | 10,933 SF
CIBER Inc – 11805 NE 99th St. | 7,393 SF
Expect Payment Solutions – 11805 NE 99th St. | 2,088 SF
MediaDex (traditional|digital|research)
Eastside
SCRAP Inc. – 2915 NE Martin Luther King Jr Blvd. | 7,395 SF
Westside
Innovative Resource Group – 7668 SW Mohawk | 6,056 SF
The Guidance Group – 4 Lincoln | 10250 SW Greenburg Rd. | 2,531 SF
Vancouver
Rocketshop – 328 NE Fourth Ave. | Camas | 1,412 SF
PIECE OF THE PDX PIE! – February 2009
Ontier, Inc. – This firm is definitely one to watch. They continue to build an impressive management team of industry veterans, draw strong attention from investors and are on the fast-track to transition from beta sometime later this year. For a description of their flagship application – Pixetell - here’s a quick teaser from their website:
“Ever try to describe a flow-chart in email? Or give specific feedback on a graphical design with nothing but a screenshot and email? Or how about explaining how to access data in a complex spreadsheet? Instead of relying on 40 year-old technology (yes email is almost 40), Pixetell lets you communicate quickly and naturally with schedule-independent communications that allow you to get your point across successfully the first time.”
SUNNY SALE IN ”THE OTHER PORTLAND”?
It appears we are not the only Portland extending an invite to the solar industry to set up shop in our town. Shoals Technologies, a solar panel component manufacturer, just purchased an industrial facility at 128 Distribution Parkway in Portland, TN from Distribution Plus LLC for $2.8 million, or $27 per square foot. The 103,200-square-foot warehouse was constructed in 2005 on 25 acres in the Westgate Business Park.
The acquisition looks to bring between 400-450 jobs to the area. Looks like we have some competition from Tennessee. I hope this is not a sign of yet another industry reconsidering Oregon, ala Freightliner and LP.
Posted in commercial real estate, office brokerage, office space, sublease | Tagged a-cti, CIBER, comcast, commercial real estate, Eastridge Business Center, gigapix, lease, leupold stevens, new office, office ally, office buildings, office space, ontier, oregon, portland, rocketshop, square feet, tektronix | Leave a Comment »
February 3, 2009 by squarefeetpdx
(source: CoStar)
After watching this transaction for the last 6 months, it was great news for downtown today when Northwest Evaluation Association finally made it official that they were moving from the suburbs into downtown Portland. They will take the entire Port of Portland Building in 2011, once the Port vacates in 2010 for a new facility out at the airport. Northwest Evaluation will be bringing 300 employees into the Old Town submarket of Portland.
The Port of Portland Building, located at 121 NW Everett, is a 7-story, 104,000 SF office building with enclosed parking on the 2nd and 3rd stories and retail on the ground floor. The office floors are around 23,500 SF each.
Northwest Evaluation Association is a non-profit who provides educational testing services to school districts and other associations. It was ncorporated in 1977.
Posted in commercial real estate, headquarters, office brokerage, office space | Tagged commercial real estate, new deal, new office, Northwest Evaluation, office space, Old Town, Port of Portland, square feet | Leave a Comment »
February 9, 2009 by squarefeetpdx
OutLook For 2009
source: Pacific Real Estate Partners
- Although the vacancy level is only up slightly at 9%, we believe the market is much softer.
- Free rent, moving allowances, discounted rent and additional tenant improvement allowances will be the norm in 2009.
- Concessions will vary by market. The Sunset Corridor, for instance, is seeing upwards of 12 months of free rent whereas the CBD, Pearl District and Lloyd Center submarkets are giving modest free rent.
For now, the impact on the CBD appears to be less dramatic. With a lack of inventory and relatively strong demand, rates are not backing off by much. Once new inventory is added starting in mid-2010, this could change.
With an eye toward the future, it should be noted that in past recessions, the Portland market didn’t bottom out for two years after the peak. Since we peaked in Q407, based on this historical data, our market should bottom out at the end of 2009, followed by a slow recovery in 2010.
Landlords have, historically, had shorter periods of time (avg. 14-16 months) to raise rates in an escalating market. So, we don’t expect to see rents increasing at any sustained pace until 2011.
MediaDex (traditionsl|digital|research)
Westside
E-Mark Solutions- Nimbus Corp Center, Beaverton | 8,986 SF
DesignDex (A/E|consulting|graphic d)
Westside
PACE Engineers- 5000 Meadows Road | 7,960 SF
TechDex (apps|provider|hardware|var)
Vancouver
Nationwide Security Solutions- Courtside Building | 7200 NE 41st St. | 2,623 SF
Posted in Forecast, Green Building, Trends, Vacancies, build to suit, building sale, commercial real estate, downsizing, headquarters, office brokerage, office space, start up, sublease | Tagged 5000 meadows, absorption, beaverton, concessions, courtside building, e-mark solutions, kruse way, Lake Oswego, nationwide security, nimbus corporate center, office building, office space, pace engineers, portland, shorenstein properties, square feet, vacancy, vancouver, WA | Leave a Comment »
February 10, 2009 by squarefeetpdx
According to National Real Estate Investor, an industry tracker, the climate among buyers and sellers of commercial real estate is a chilly one to say the least. With the credit crunch at full throttle, you have to be Warren Buffett in order to secure financing, and he doesn’t really need it.
Denise Kalette of NREI writes, “Commercial and multifamily mortgage lending slowed to a trickle in the fourth quarter,” said Jamie Woodwell, vice president of commercial real estate research at MBA, in a statement. “Originations for all of 2008 were down approximately 60% from 2007 levels. Between the worsening economy and the continued credit crunch, lenders are extremely cautious about lending and borrowers are likely to hold onto the assets and the loans they already have.”
In short, if you own commercial real estate – hold it if you can and if you want to buy – come with cash in hand.
Compared to Q407, the 80% decline in loans for all property types breaks down as follows:
- 99% decrease for hotel
- 82% decrease for retail
- 76% decrease for industrial
- 72% decrease for office
- 62% decrease for multifamily
- 47% decrease for health care
For the full story, visit http://tinyurl.com/dkej2g
Posted in Forecast, Trends, building sale, commercial real estate, office brokerage, office space | Tagged 1031 exchange, buyers, commercial property, credit crunch, industrial, investors, loan originations, multifamily, NREI, portland, retail, sellers | 1 Comment »
February 11, 2009 by squarefeetpdx
It would appear my previous concerns over Vestas actually building a 500,000 SF office tower in Portland are, alas, valid. They announced today the possibility of layoffs in the coming months despite a 51% increase in revenues. This sounds like a shot out over the bow to me. For the full story from the Portland Business Journal – http://tinyurl.com/b5magk .
Posted in Uncategorized | Tagged business journal, layoffs, office building, oregon, portland, square feet, vestas | Leave a Comment »
February 12, 2009 by squarefeetpdx
The latest edition of the PDC’s (Portland Development Commission) Sustainability in Urban Development Report is available now – http://tinyurl.com/c69hsc (this is a 4mb pdf file)
A few statistics shared in the report indicate that U.S. buildings are responsible for:
70% of electricity consumption
39% of energy use
48% of all carbon dioxide emissions
40% of raw materials use
30% of waste output (136 million tons annually)
12% of potable water consumption
One of the featured case studies is eROI and their purchase and rehab of the Technology & Arts block in Old Town. They collaborated with the Zero Waste Alliance (ZWA) to “green” the building and secured $250,000 in tenant improvement assistance from the PDC. This is a great example of how to fully utilize funds available to tenants in the Portland market by implementing sustainable practices and materials into an office space build out.
Posted in Green Building, LEED, Trends, commercial real estate, headquarters, office space | Tagged brokers, commercial real estate, LEED, office buildings, office space, PDC, portland, QJP, square feet, sustainability, tenant improvement, urban development, zero waste alliance | Leave a Comment »
February 17, 2009 by squarefeetpdx
Hotel Occupancy Report For the Top 25 Markets
Just like every other product type in real estate, there is a report for hotel occupancy and I think we all know where this one is going. The latest report shows that all of the major markets are showing signs of stress due to the economy. The average occupancy rate among the top 25 markets registered 58.7% in the fourth quarter, down from 63.7% in the fourth quarter of 2007. Revenue per available room (RevPAR), a closely watched metric that takes into account occupancy and room rates, fell by 10.7% in the top 25 markets during the same period.
The average daily rate among the top 25 markets checked in at $132.23 in the fourth quarter, down 3.1% from $136.50 a year earlier. And the Phoenix market, stung by soaring home-foreclosure rates and slumping house prices over the last few years, earned the dubious distinction as the worst performer with an 18.7% drop in RevPAR year-over-year. (source: NREIonline, Matt Valley)
TechDex (apps|provider|hardware|var)
Westside
Open Systems Solutions NW - AmberGlen Biz Ctr | 1915 NW AmberGlen Pkwy | 1,808 SF
HealthDex* (hospital/clinic|managed care|product provider)
Central Business District
Quality Health Solutions – BJ John Building | 5901 SW Macadam | 3,643 SF
DesignDex (A/E|consulting|logistics |graphic d)
Vancouver
LotusGroup USA Inc - EastRidge Business Park | 9611 NE 117th | 4,760 SF
Alpine Transportation – 11101 NE 66th Circle | 4,000 SF
*Please note I have added a new index for the healthcare industry (HealthDex). This is one group that is continuing to expand despite the economic slowdown and may be of interest to watch as they grow across all submarkets.
Posted in commercial real estate, lease, new office, office space | Tagged Alpine Transportation, AmberGlen, BJ John Building, Eastridge Business Park, hotel occupancy, lease, LotusGroup USA, office space, open systems solutions nw, portland, Quality health solutions, square feet, vacancy, vancouver | Leave a Comment »
February 23, 2009 by squarefeetpdx
Local Real Estate Fund Hits Wall
According to an article in the Saturday edition of the Oregonian, SKB will be halting all payments from a private equity fund to investors. SKB (ScanlanKemperBard Companies) is a well-known real estate firm with a portfolio of properties covering the West Coast. SKB was in the news last September for the sale of four commercial properties that included the American Bank Building in downtown Portland for just over $63M. This recent announcement is a significant change in position from just one year ago, when SKB was successfully raising money for a new fund and demonstrates how the economic conditions are rapidly spreading beyond banking and the automotive industry.
TechDex (apps|provider|hardware|var)
Central Business District
OpenOnline – Water Tower | 5330 SW Macadam Ave. | 1,247 SF
Westside
Witt Company – Barbur Biz Ctr | 9570 SW Barbur Blvd | 4,140 SF
Vancouver
J/FIT.com – 900 Tech Center Dr. Bldg 28 | 4,000 SF
MediaDex (traditional|digital|research)
Central Business District
Unifusion – Morrison Plaza | 1411 SW Morrison St. | 2,024 SF
Citrus – Olympic Mills Com. Ctr. | 107 SE Washington St. | 3,650 SF
HealthDex (hospital/provider|managed care|product provider)
Central Business District
Senior Info Center – River Forum 1 | 4380 SW Macadam Ave. | 1,118 SF
Pacific Medical Inc. - 2675 NW Thurman St. | 2,225 SF
Westside
Legacy Health System – Pollock Building | 412 “A” Ave. | 7,300 SF
Westlake Chiropractic – Westlake Village | 14511 Westlake Dr. | 1,872 SF
Eastside
Kaiser Foundation – One Town Ctr | 10163 SE Sunnyside Rd. | 6,806 SF
Parrott Creek Child/Family Svs – 1001 Molalla Ave. | 2,443 SF
Posted in commercial real estate, headquarters, lease, new office, office brokerage, office space, start up | Tagged barbur business center, citrus, j/fit.com, kaiser foundation, legacy health, morrison plaza, olympic mills commerce center, one town center, openonline, oregonian, pacific medical, parrott creek family, peter stott, pollack building, river forum, SKB, unifusion, water tower, westlake chiropractic, westlake village, witt company | Leave a Comment »
March 2, 2009 by squarefeetpdx
Top 25 U.S. Office Property Owners
Though Portland is a second tier market from a commercial real estate standpoint, several national portfolios have a stake in our market . Of the top 25 office property portfolio owners in the U.S., 9 of them have holdings in the Portland/Vancouver area. Shorenstein Properties is the largest holder in Portland with properties including Congress Center, most of Kruse Way, and First and Main (the building under construction and located at the westside Hawthorne bridgehead). Our market has often been considered a stable investment, with less exposure to extreme swings and, thus, a good market to place investments during erratic times, high or low.
The properties highlighted in red have interests in the Portland/Vancouver area.
- RREEF | New York, NY | 93.6 million SF
- Brookfield Properties | New York, NY | 59.5 million SF
- The Blackstone Group | New York, NY | 57.9 million SF
- Hines | Houston, TX | 55.4 million SF
- CB Richard Ellis Investors | Los Angeles, CA | 49.8 million SF
- TIAA-CREF | New York, NY | 47 million SF
- ING Clarion Partners | New York, NY | 46.8 million SF
- Vornado Realty Trust | New York, NY | 44.2 million SF
- Boston Properties | Boston, MA | 43.8 million SF
- LaSalle Investment Management | Chicago, IL | 39 million SF
- Duke Realty Corp | Indianapolis, IN | 36.3 million SF
- HRPT Properties Trust | Newton, MA | 35.3 million SF
- Mack-Cali Realty Corp | Edison, NJ | 33.3 million SF
- SL Green Realty Corp | New York, NY \ 32.2 million SF
- Brandywine Realty Trust | Radnor, PA | 31.9 million SF
- Behringer Harvard | Addison, TX | 30.4 million SF
- J.E. Roberts Cos | McLean, VA | 27.7 million SF
- Highwoods Properties | Raleigh, NC | 25.7 million SF / Liberty Property Trust | Malvern, PA | 25.7 million SF
- Shorenstein Properties | San Francisco, CA | 21.3 million SF
- Wells Real Estate Funds | Norcross, GA | 20.5 million SF
- KBS Realty Advisors | Newport Beach, CA | 18.7 million SF
- Inland Real Estate Group | Oak Brook, IL | 18 million SF
- AEW Capital Management | Boston, MA | 15.3 million SF
- Lincoln Property Co | Dallas, TX | 14.6 million SF
- Forest City Enterprises | Cleveland, OH | 13. 4 million SF
Much of the commercial property in Portland/Vancouver is owned by local/regional players who are not looking to compete with large, national REITs (Real Estate Investment Trusts). Some of the larger local owners are American Property Management (2+ million SF), Bill Naito Company (1+ million SF), Harsch Investment Properties (1.5+ million SF) and Gramor Development (1.7 million SF). These owners are often family-based businesses with a long history of real estate development in the region.
MediaDex (traditional|digital|research)
Central Business District
Struck Creative - Skidmore Building | 24 NW First Ave. | 2,752 SF
DesignDex (A/E|consulting|graphic d)
Westside
Aras Systems – Cascasde Plaza West | 12655 NW Center St. | 4,731 SF
HealthDex (hospital/provider|managed care|product provider)
Vancouver
PT on Call – Park Tower 1 | 201 NE Park Plaza | 2,564 SF
Maxim Healthcare - First Place Plaza | 12503 SE Mill Plain Blvd | 1,612 SF
Posted in commercial real estate, office brokerage, office space | Tagged apm, Behringer Harvard, blackstone, boston properties, brookfield properties, Duke Realty, First and Main, gramor, harsch, hines, ING Clarion, KBS Realty, kruse way, LaSalle, Naito, One Main Place, REIT, rreef, shorenstein, struck creative, TIAA CREF, vornado | Leave a Comment »
February 26, 2009 by squarefeetpdx
The next time you drive by a shopping center and notice yet another store has disappeared from the monument sign, the reason could be an exercised co-tenancy clause. Think Circuit City by Washington Square.
Co-tenancy clauses are legal passages included within retail lease agreements that allow retail tenants to cancel their lease or seek major rent reduction should a major anchor tenant, think Nordstroms or Best Buy, vacate the shopping center. The thought behind this type of clause was that most retailers strategically feed off of other, complementary retailers. If that giant among men, er, people is no longer there to draw in visitors to a shopping center, then most certainly the smaller retailers will suffer. Smart for retail tenants – but oh so bad for building owners.
Exercising the co-tenancy clause is proving to be devastating to Landlords in this economy. If a major retail tenant cancels its lease, then the door is opened for others to follow. It is the perverbial House of Cards effect, placing entire shopping centers at risk of going dark entirely. Dark stores deter new tenants and shoppers causing cash flow to dwindle. The ultimate effect: the landlord is unable to make his debt service and bankruptcy is in their future.
Another popular clause is the “kick-out” which allows a tenant to leave with six months notice if their sales dip below a specified level. This clause essentially binds the hands of the landlord by prohibiting the ability to seek penalties or recover costs if the retailer gives notice. In today’s economy however, shopping centers are desperate for credit tenants and few are likely to refuse the inclusion of these clauses in a lease agreement. For full details go to the story by Denise Kalette at National Real Estate Investor – http://tinyurl.com/cbov3b
Posted in Trends, Vacancies, commercial real estate, downsizing, lease, retail brokerage | Tagged bankruptcy, best buy, co-tenancy, kick out clause, lease, national real estate investor, retailers, shopping centers | Leave a Comment »
February 27, 2009 by squarefeetpdx
Two new buildings are nearing delivery inVancouver. Both projects are located in the upper north end blocks of downtown and carry on the movement of a revitalized core.
The private projects, on the west side of Interstate 5 near its exit to 15th Street and Mill Plain Boulevard, include iQ Credit Union’s $10.5 million downtown headquarters and the first of two multi-story buildings in The Al Angelo Co.’s $57 million 400 Mill Plain Center.
For more on these properties, read this article from The Columbian: http://tinyurl.com/cvtf7u.
Posted in commercial real estate, headquarters, office brokerage, office space | Tagged al angelo company, iQ Credit Union, lease, mill plain, office space, real estate, vancouver | 1 Comment »
March 1, 2009 by squarefeetpdx
Highly regarded financial advisor Judith McGee had a few thoughts to offer on the current credit market and what she sees as, if at least modestly, improving markets this year. Though cautious on her observations, Ms. McGee points out that money market indicators are showing signs of better times ahead. An important signal to track is the Ted spread (the gap between the rate of the three month Treasury bill and the lending rate banks charge each other). She points to the fact that in November 2008, banks were not lending to one another thus causing the Ted to stretch to 450 basis points, a colossal jump in the wrong direction over a short timeframe. It is currently down around 100 basis points, a vast improvement. The average from 2002 to 2006 was 25-30 basis points, so clearly we have some work to do, but it looks attainable at this point.
From a commercial real estate standpoint, this means that, very slowly, commercial investors can hope to see some lending make a re-appearance in lower risk markets first followed by more troubled areas. Portland is lower risk, though considered a second tier investment market, with our neighbor to the north considered a good first tier investment by many. I’m not sure if we have seen the full effects as a result of Wamu’s collapse (whose 700,000 SF downtown office tower will be vacated) and Boeing’s continued layoffs, which could change the outlook for Seattle.
The story references statistics provided by my partner and I through our quarterly report on the market conditions in Portland and Vancouver. If you are interested in receiving our quarterly report, contact me at kristin.hammond(at)pacific-re.com.
Here’s the article from the DJC – http://tinyurl.com/blpefchttp
Posted in Trends, commercial real estate, office space | Tagged basis points, bps, commercial real estate, credit market, daily journal of commerce, lease, leasing, McGee Financial, office space, pacific real estate partners, portland, square feet, Ted, treasury bills, vacancy rate | Leave a Comment »
March 4, 2009 by squarefeetpdx
According to an article in today’s Portland Business Journal, the U.S. Environmental Protection Agency has ranked Portland 19th for the highest number of energy efficient buildings in the country. Portland has 45 buildings that meet the criteria.
Los Angeles has the most buildings with the EPA “Energy Star” rating, with 262, followed by San Francisco with 194 and Houston with 145. Those cities are followed by Washington, D.C.; Dallas-Fort Worth; Chicago; Denver; Minneapolis-St. Paul; Atlanta and Seattle.
For buildings to be considered for Energy Star classification they must use 35 percent less energy and emit 35 percent less greenhouse gases than average buildings.
For a list of the 45 buildings in Portland that meet the Energy Star classification go to – http://tinyurl.com/bjggoc
Posted in Green Building, LEED, commercial real estate, lease, oregon, portland, square feet | Tagged commercial real estate, energy efficient, energy star, epa, Green Building, lease, LEED, office buildings, office space, portland business journal, square feet | Leave a Comment »
March 9, 2009 by squarefeetpdx
Commercial Real Estate Will Survive This Economy
Despite what the average joe may think, a survey conducted by Greenwich Associates, a Stamford, Conn.-based consultant and research firm confirms what many advisors already know — real estate will continue to be an integral part of diversified portfolios. Hard to believe I know, but remember this is not like the dot com bust, where businesses were peddling unrealized concepts at best. We are talking about office towers, industrial facilities, multi family housing and numerous other structures that are a foundational component to business. According to 30-year veteran of institutional investing Ted Leary, “Institutions like real estate, they know real estate,” “They are not going to get out of real estate. Some may shrink their allocations, some may increase their allocations.”
For the full story – click on http://tinyurl.com/apwx4b
TechDex (apps|provider|hardware|var)
Westside
Ziprealty Inc – Fanno Creek Place | 16037 sW Upper Boones Ferry Rd | 2,052 SF
DesignDex (a/e|consulting|graphic d)
Vancouver
Security Design Group – 3315 NE 112th Ave | 2,000 SF
SustainDex (environmental|sustainable|clean/bio tech)
Westside
SCS Consulting Engineers – 14945 SW Sequoia Parkway | 2,347 SF
HealthDex (hospital/provider|managed care|product)
Central Business District
Dr. Raymond Frye – 926 NW 13th Ave. | 2,318 SF
Westside
Dungarvin Oregon LLC – Hilltop Business Ctr | 7320 SW Hunziker Rd | 3,521 SF
Posted in Trends, commercial real estate, office brokerage, office space | Tagged clean tech, commercial real estate, Dungarvin Oregon, Fanno Creek Place, hilltop business center, lease, leased, LEED, office buildings, office space, rates, SCS consulting, square feet, technology, vacancy, ziprealty | Leave a Comment »
March 5, 2009 by squarefeetpdx
A client of mine, Schlesinger Companies, has stepped up as a steward of the environment and committed to installing a new type of spongy filter, created for large-scale oil-spill remediation, that will be used to prevent harmful hydrocarbons from seeping into the Willamette River from high-pollution areas. Placed under the runoff catch basin at Star Park’s Southwest Fourth Avenue parking lot near PSU, these cool, new filters will absorb harmful heavy metals and other pollutants.
The company behind these intriguing new filters is local firm Hydrophix (who, coincidentally resides at 610 SW Alder – a building owned and managed by the Schlesingers). Referred to as Smart Sponges, these spongy balls are each about the size of a foam peanut and can absorb more than three times their own weight in pollutants.
For the complete story – http://tinyurl.com/d2vsrt
Posted in Green Building, Trends, commercial real estate, headquarters, office brokerage, office space | Tagged Alder, clean tech, commercial real estate, environment, green tech, hydrophix, office space, oregon, portland, psu, schlesinger, smart sponge, square feet, star park, sustainable practices, willamette river | Leave a Comment »
March 13, 2009 by squarefeetpdx
Agave, so, here’s a neat company that relocated in 2006 from Los Angeles to the Pacific Northwest. Agave designs and manufactures high end jeans, yep the denim we love to cover our legs with at least 350 days a year. Agave just made an expansionary move into a 22,500 square foot facility in Ridgefield, WA and appears to be doing well despite our economy. As the founder, Jeff Shafer, talks about his views of natural wetlands, I can only assume things are pretty calm and peaceful in this new location.
For more – check out this article from the Columbian – http://tinyurl.com/dkczvk
-
-
New Agave Jeans Headquarters in Ridgefield, WA
Posted in Trends, commercial real estate, headquarters, office space | Tagged agave jeans, commercial real estate, denim, headquarters, lease, los angeles, manufacturing facility, new building, office space, or, portland, ridgefield, square feet, WA | Leave a Comment »
March 16, 2009 by squarefeetpdx
A Lack of Transactions is Warping Index Report
A key tool used to track the health of the economy and the commercial real estate market is being affected by the shrinking number of transactions, according to the Massachusetts Institute of Technology’s Center for Real Estate.
“The fourth quarter of 2008 is the first time we’ve ever had to skip updating one of the sector indexes,” Geltner says. “We couldn’t update the retail index because there were literally zero sales of retail properties” in the database.
For the full story from NREI – http://tinyurl.com/cj5xoe
TechDex (apps|provider|hardware|var)
Central Business District
SubmitNet Inc. – Congress Center | 1001 SW Fifth Ave. | 5,109 SF
Digital Trends – US Bancorp Tower | 100 SW Fifth Ave. | 8,084 SF sublease
Westside
AuctionPay – Triangle Corp Park | 13224 SW 68th | 14,580 SF
Nikon Precision – 22845 NW Bennett St. | 9,155 SF
SustainDex (environmental|sustainable|clean/bio tech)
Central Business District
Element Power US – Commonwealth Building | 421 SW Sixth Ave. | 9,940 SF
HealthDex (hospital/provider|managed care|product)
Westside
Vermont Hills Family Life Center – Fairway Center | 9115 SW Oleson Rd. | 3,224 SF
Posted in commercial real estate, headquarters, office brokerage, office space, sublease | Tagged auction pay, brokerage, commercial real estate, commonwealth building, congress center, digital trends, element power us, fairway center, nikon precision, office space, shorenstein, square feet, submitnet, triangle corporate park, unico, us bancorp tower | Leave a Comment »
March 23, 2009 by squarefeetpdx
This week’s wrap up of moves is showing more activity, but there are still a large number of companies currently in the market for new office space. I expect to see more announcements over the coming weeks as groups like Survey Monkey, Eleven Wireless, Credence, Elemental Technologies, Forrester, NexPlanar, New Horizons, Kaiser Permanente, Becker Capital, Trans Canada, City University and Azumano Travel, to name a few, finalize decisions about their office space needs. The 2nd Quarter is typically more active than the 1st Quarter and this year appears to be on track with that historical trend.
TechDex (apps|provider|hardware|var)
Westside
Golden Signals – 1915 NW AmberGlen | 3,109 SF
Coherent – Boeckman Corp Ctr | 27650 SW 95th Ave., Wilsonville | 41,250 SF
ServerLogic – Lincoln Tower | 10260 SW Greenburg Rd | 4,385 SF sublease
T3 Company – 7412 SW Beaverton-Hillsdale Highway | 3,555 SF
Vancouver
Purple Communications (GoAmerica) – Vancouver Center | 700 Washington St.
GeneralBizDex (mgmt consulting|finance|insurance)
Westside
Dickinson Consulting Group – 4 Lincoln | 10250 SW Greenburg Rd.| 2,216 SF
Vancouver
AmeriCasa – Park Tower | 1201 NE Park Plaza Dr. | 1,854 SF
GovDex (government agencies)
Westside
Oregon Dept Consumer Svcs – Parkway Plaza | 25195 SW Parkway | 2,650 SF
Eastside
Oregon Dept of Revenue – 1550 NW Eastman Parkway, Gresham | 5,640 SF
Vancouver
Washington GSA – Stonemill Biz Ctr | 204 SE Stonemill Dr. | 14,545 SF
Posted in Trends, Vacancies, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease | Tagged AmberGlen, americasa, coherent, commercial real estate, golden signals, headquarters, lincoln tower, office buildings, office space, purple communications, serverlogic, square feet, stonemill, sublease, vancouver center | Leave a Comment »
March 18, 2009 by squarefeetpdx
Office Leasing : Advantage Tenant
Recent reports are saying the same thing: the office market is fast becoming a tenant’s market. Nationwide, the vacancy rate rose steadily through 2008 with a spike toward the end of the year. This increase in vacancy is applying downward pressure on rental rates, decreasing occupancy costs, and increasing the amount of inducements being offered by landlords (ie. free rent or larger tenant improvement allowances).
Now is also a good time for tenants to review their existing leases to see if there is the ability to lower expenses through an early renewal. Keep in mind, tenants willing to sign a longer term lease (say 5+ years in this climate) are the ones who have any real play with this option. Short-term leases do not have leverge with landlords.
Commercial Property Values Still Tumbling
According to Moody’s/REAL Commercial Property Price Indices, in 2008, commercial real estate prices dropped 15%, nearing 2005 levels. In December, the prices fell 2.2% from November levels – a significant drop. Commercial properties are now down more than 16% from their peak in October 2007 and are projected to decline further over the near-term. The good news (there is some) is credit markets are improving (see my earlier post about TED).
Posted in Trends, commercial real estate, office brokerage, office space | Tagged commercial real estate, credit market, landlords, leasing, occupancy, office properties, office space, renewals, rental rates, square feet, tenants, vacancy | Leave a Comment »
March 18, 2009 by squarefeetpdx
source: NREIonline.com
According to a recent report from Oakland, Calif.-based research firm Foresight Analytics, an extremely tight credit market coupled with $814 billion in maturing loans over the next three years could prove to be a toxic mix that delays recovery and puts pressure on valuations.
A total of $296.2 billion in loans originated by banks, commercial mortgage-backed securities (CMBS) and life companies is projected to come due in 2011. Of that total, $17 billion to $40 billion each of maturities this year and next will come from 2006 and 2007 vintages. In 2011, the amount of 2006 and 2007 vintage loans maturing shoots up to $85 billion.
An example that has already hit maturity issues is Chicago-based General Growth Properties (GGP), a real estate investment trust with a stake in 200 malls across 44 states – including Pioneer Place and Clackamas Town Center. GGP currently has about $1.2 billion of past due debt and another $4.1 billion worth of debt that could be called in. It also has an additional $1.4 billion worth of consolidated mortgage debt and $595 million of unsecured bonds scheduled to mature during 2009 that remains to be refinanced, repaid or extended. As of March 10, 2009, GGP is asking holders of $2.3 billion worth of bonds to hold off on calling in payments and give the company until the end of 2009 to refinance its crushing debt as it seeks to stave off a Chapter 11 bankruptcy filing.
For the full story from National Real Estate Investor - go to http://tinyurl.com/dl2k5t
Posted in Forecast, Trends, commercial real estate, office space, retail brokerage, square feet | Tagged clackamas town center, cmbs, commercial real estate, general growth properties, ggp, maturities, office buildings, office space, pioneer place, REIT, square feet, valuations | Leave a Comment »
March 20, 2009 by squarefeetpdx
Ziba HQ view from NW Ninth
It’s been a year since Ziba Design broke ground on their new headquarters building in the Pearl District. On the corner of NW Ninth and NW Marshall, the building has a new “skin” on it and glass walls are in place.
This building will not be ignored as Holst Architecture has done an outstanding job of designing something unique among highrise condos. With a building total of 76,000 square feet, upon completion there will be 8,000 square feet of office space for lease and 18,000 sf of retail space for lease, both on the ground floor. Here’s your chance to get in one of the coolest new projects in town on the ground floor-literally.
Ziba will occupy the 2nd and 3rd floors of the building, with spaces for a 275 seat auditorium, war rooms, cafe’, library, outdoor deck and grand staircase connecting to the front reception area.
Exteriors: metal, stone & cumaru hardwood
Other features such as wall-mounted digital sketch boards and wireless access throughout are being incorporated to spur creativity and flexibility among the talent.
Ziba plans to move into their new offices in August of this year. The building is going for LEED Gold certification, so sustainability and energy efficiency have been taken into account along side good design. Geez, is there anything this group doesn’t do right?
For more on this, check out this article from February 2009 -http://tinyurl.com/dfhot4
ADDRESS: 1044 NW Ninth Ave., Portland OR
Posted in Green Building, LEED, build to suit, commercial real estate, headquarters, new office, office space, portland, square feet | Tagged build to suit, commercial real estate, headquarters, holst, LEED, office building, office space, pearl district, square feet, ziba design | 1 Comment »
March 20, 2009 by squarefeetpdx
SolarWorld continues to invest in Oregon with the very recent announcement of expansion plans. The manufacturer will add another 210,000 square foot facility to it’s 100 acre campus in Hillsboro. This brings the total square feet under the SolarWorld umbrella in Hillsboro to 690,000.
This is great news for Oregon as manufacturing in other sectors, particularly steel and timber industries, has taken a big hit from the slowing economy.
The new building is slated to be completed by November of this year and will be home to the company’s logistics, distribution and production operations. The company plans to employ more than 1,000 workers at the Hillsboro facilities by 2011.
Noch einmal!
Posted in build to suit, commercial real estate, headquarters, square feet | Tagged commercial real estate, hillsboro, industrial space, office space, SolarWorld, square feet | Leave a Comment »
March 24, 2009 by squarefeetpdx
The former Hynix Semiconductor plant in Eugene, Oregon is on the market for sale. With 1.2M square feet on 200 acres, this property is similar in size to the HP campus in Camas, WA (which is rumored to have a new buyer of that campus announced in the coming weeks). The campus has three buildings including a 173,000 square foot clean room facility. Built in 1997-98, the Hynix plant employed 1400 people until July 2008, when it announced plans to shut down the fab operation in Eugene. Hynix Seminconductor is the second largest producer of memory chips.
This property will be a challenging disposition. The presence of such a large clean room facility makes the obvious buyer pool much smaller, without even factoring in the current economic climate. The HP campus in Camas has been on the market for well over a year and the expectation is that this property will move no quicker and maybe sell for $50M, likely less.
Posted in building sale, commercial real estate, downsizing, headquarters, office brokerage, oregon | Tagged acres, clean room, commercial real estate, eugene, fab, for sale, HP, hynix, office building, square feet | 1 Comment »
March 25, 2009 by squarefeetpdx
C.E. John Co. will be opening a new $5 million project on the banks of the Columbia this spring. The structure is at 2001 S.E. Columbia River Drive, next to Beaches Restaurant & Bar.
Referred to as the Columbia Shores Development, the two-story office condo building has four units totaling 22,450 square feet. KMS Financial Services has already committed to one unit.
source: The Columbian
The project is an attractive structure, however, office condos can be a bit tricky in good times. Just like any condo situation, you are now sharing ownership of the structural maintenance and upkeep and other obligations with “partners” not of your choosing.
Posted in building sale, commercial real estate, lease, new office, office brokerage, office space, square feet | Tagged CE John, commercial real estate, kms financial, lease, office building, office condo, square feet, vancouver | Leave a Comment »
March 30, 2009 by squarefeetpdx
The big story today in commercial real estate is the failure of national mall owner General Growth Properties to secure a nine month extension from bondholders. Based in Chicago, GGP is now on the verge of filing banktruptcy and trying to work out payment to banks, pension holders and bondholders. GGP has warned the SEC in filings that it may need to seek bankruptcy protection if it could not win reprieves on payment deadlines from lenders. They are carrying $27 billion debt load, with the most recent deadling for $395 million coming and going with no payment made.
General Growth Properties owns and manages over 200 malls and is the second largest mall owner in the U.S. just behind Simon Property Group. A large portion of the current debt load is a result of the purchase of Rouse Co. in 2004. Rouse was the ownership for Pioneer Place among other properties in Portland. Pioneer Place was recently on the market for sale, but has been pulled off in light of GGP’s troubles and lack of interest by buyers. GGP also owns Clackamas Town Center.
For the complete story, visit http://tinyurl.com/dknxu8
HealthDex (hospital|provider|managed care|equipment)
Westside
Blacktoe Medical III Inc - 12725 SW 66th Ave | 2,457 SF
Eastside
Oregon Post Adoption – Pacific Plaza | 2950 SE Start St | 2,441 SF
Vancouver
Orchards Veterinary Clinic – Evergreen Plaza | Fourth Plain Rd | 2,670 SF
Maxim Healthcare – First Place Plaza | 12503 SE Mill Plain Blvd | 1,612 SF
GeneralBizDex (mgmt consulting|finance|insurance)
Westside
Travelers Indemnity Co – 4000 Kruse Way Place I | 2,996 SF
Milliman – Tualatin Corp Ctr | 19771 SW 95th Pl | 5,528 SF
Central Business District
Evanta – Koin Center | 222 SW Columbia St | 6,626 SF
Posted in Vacancies, commercial real estate, headquarters, lease, new office, office brokerage, office space, square feet, start up, sublease | Tagged blacktoe medical, commercial real estate, evanta, evergreen plaza, koin center, kruse way, maxim healthcare, milliman, office buildings, office space, oregon post adoption, pacific plaza, security design group, square feet, tualatin corporate center | Leave a Comment »
March 30, 2009 by squarefeetpdx
The Investment Team at Pacific Real Estate Partners distributes a monthly report to clients updating them on the latest activity in the market. This report covers disposition (sales) activity for the enitre Pacific Northwest. Personally, I think the IKEA store is the best buy option on the market right now, but that’s based purely on my love of swedish meatballs and contemporary napkins.
PROPERTIES IN THE MARKET: SEATTLE
|
OWNER
|
PROPERTY
|
SIZE
|
SUBMARKET
|
| BlackRock |
First & Stewart Building |
90,700 RSF |
Seattle CBD |
| BlackRock |
Canyon Park Heights |
144,400 RSF |
Eastside/Bothell |
| BlackRock |
Landmark East & West |
273,900 RSF |
Southend/Renton |
| AMB |
IKEA Store |
760,000 RSF |
Southend/Renton |
| Legacy |
Seattle P-I Building |
100,000 RSF |
Seattle CBD |
| Legacy |
Seattle Tower |
159,000 RSF |
Seattle CBD |
| Principal |
Lincoln Plaza |
148,000 RSF |
Suburban Bellevue |
PROPERTIES IN THE MARKET: PORTLAND
|
OWNER
|
PROPERTY
|
SIZE
|
SUBMARKET
|
| Bank of the Cascades (REO) |
Sunnybrook Ridge |
64,400 RSF |
Clackamas |
| Dermody Partners |
Portal Way |
265,000 RSF |
East Columbia Corridor |
| National Government Properties |
Robert Duncan Plaza |
350,500 RSF |
CBD |
| Schnitzer Investment Corporation |
217 Distribution Center |
445,000 RSF |
217/Beaverton |
CLOSED TRANSACTIONS: SEATTLE
Costco Wholesale Corporation, headquartered in Issaquah, Washington, recently purchased the 95,000 SF Lake Place II office building. Adjacent to their world headquarters, the property was purchased from Dayhu Investments for $20,327,750 or $214/SF.
CLOSED TRANSACTIONS: PORTLAND
Manchester Capital Management, LLC of Manchester, VT closed on the purchase of Felton Properties’ historic Spalding Building in downtown Portland. The purchase price for the 99,000 RSF property was $12.5 million or approximately $127/SF. The assumable debt totaled $5.3 million and the property was 93% leased at the time of sale due in part to a large tenant that signed while the property was under contract. The estimated cap rate on in-place income is approximately 8% increasing to 9% for Year 2 when the property benefits from a full year of income on the recent leases.
Lucas Oregon Properties purchased three office buildings in Portland’s Airport Business Center for $4 million, or $103 per square foot, from Airport Business Center Inv. Located at 6601, 6623 and 6645 NE 78th Court, the 38,806 square foot office portfolio is 65% occupied.
Upcoming…. details on the sale of the 46,216 RSF Willamette Wharf Building, located at 4640 SW Macadam Avenue in Johns Landing.
Posted in Vacancies, building sale, commercial real estate, downsizing, headquarters, new office, office brokerage, office space, oregon, portland, square feet | Tagged amb, blackrock, buildings for sale, commercial real estate, dermody, ikea, industrial, legacy, office buildings, retail property, robert duncan plaza, schnitzer, seattle tower, square feet | Leave a Comment »
April 6, 2009 by squarefeetpdx
CABLE TELEVISION SERIES SETS UP SHOP IN PORTLAND
source: tnt.com
The exciting news last week in commercial real estate was the two lease deals involving Leverage 2 Productions (office and warehouse/studio space). These two deals combined for a total of 67,693 SF. Leverage 2 is the production unit for the television series on cable (TNT) titled, as you can guess, ”Leverage”. As a viewer of Season One, I have enjoyed its Oceans Eleven meets Robin Hood theme backed by some quality actors like Hutton. The season finale ended with the main office being blow to bits and the characters identities compromised, so apparently they will be relocating to another city to set up a new shop – enter Portland. The second season will be filmed here in Portland (and I’m assuming Oregon/Washington rural areas) which is great for the local economy and yet another win for the Office of Film & Television in Oregon. See the transaction details below.
MediaDex(traditional|digital|research)
Central Business District
Vertis Inc. – Marine Building | 1771 NW Pettygrove St | 4,400 SF
Eastside
Leverage 2 Productions - Clackamas Biz Ctr | 14911 SE 82nd | 4,928 SF
Leverage 2 Productions – Clackamas Commons II | 12440 SE Capps Rd | 62,765 SF
SustainDex(environmental|sustainable|clean/bio tech)
Eastside
Medallion Forest Products – Portland Int. Plaza | 8338 NE Alderwood | 1,986 SF
GeneralBizDex(mgmt consulting|finance|insurance)
Central Business District
Charter School Capital - 239 NW 13th Ave | 2,222 SF
Posted in Vacancies, commercial real estate, downsizing, lease, new office, office space, oregon, portland, square feet, start up | Tagged charter capital, clackamas business center, commercial real estate, lease, leverage, marine building, medallion forest, office space, portland international plaza, square feet, sublease, tnt, vertis | Leave a Comment »
April 7, 2009 by squarefeetpdx
THE PEARL DISTRICT
The latest round of economic losers (not to be interpreted as groups not worthy but rather unfortunate victims) in the Portland area includes Brookfield Renewable Power. Brookfield subleased a space in the historic DeSoto Building (720 NW Davis) on the edge of the Pearl District back in October of 2008. Their very slick 6,400 SF space is now on the market for sublease with a 5 or 7 year term option. Furniture and equipment are included in the asking rent of $24.00 per square foot all in. This is a nice space (LRS Architects own the condo) with rooftop deck access, showers, and quick access to the Park Blocks.
CLOSE IN NORTHWEST (23RD & GLISAN)
If you drive up 23rd Avenue much, I’m sure you have noticed the new construction taking place on the corner across from Pizzacato (the former bridal shop spot). Details have finally emerged on this property which has taken on the look of a more mid-century modern design. It has just over 3,000 SF of office space on the 2nd floor, but can be divided down to smaller sizes. It will be ready this month and is asking $22.00/SF NNN.
source:mbm properties
Posted in Vacancies, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, sublease | Tagged brookfield renewable, close in NW, desoto building, lease, LRS, NNN, NW 23rd, office space, pearl district, post and beam, square feet, sublease | Leave a Comment »
April 7, 2009 by squarefeetpdx
News stories broke today confirming that The Columbian Building is facing foreclosure by Bank of America if the ownership, Columbian Publisher Scott Campbell and his family, could not service debt of up to $15 million. The ownership is attempting to renegoiate their debt terms. The Columbian occupied the new building for one year and then moved back to old facilities in order to cut expenses and survive and avoid bankruptcy.
The 114,800 SF Columbian Building is the newest Class A office building in the downtown Vancouver landscape and attracted tenants including Apple and AHA! Unfortunately, the building delivered in down times and vacancy hovers around 75%, making the property a less than attractive investment opportunity despite it’s attractive features.
source:costar
Posted in Vacancies, building sale, downsizing, headquarters, lease, new office, office space, square feet, sublease | Tagged aha, apple, class a, columbian, foreclosure, lease, office, square feet, sublease, vancouver | Leave a Comment »
April 13, 2009 by squarefeetpdx
BACK TO THE DRAWING TABLE FOR PARK AVENUE WEST
The big news late last week was the announcement of the halt on construction for the Park Avenue West Office Tower located across from the downtown Nordstroms. While this news was not entirely unexpected in the commercial real estate community (we have been concerned about financing for months now) it was still a major blow to the positive energy supporting Portland’s steady office market.
The next question will be whether major law firm and anchor tenant Stoel Rives will remain with the project or pull the trigger on an option to back out of their commitment to lease nearly 160,000 SF in the building. Nike has also committed their new store location to this project and could reconsider as well (perhaps the new Zell space in Pacific Center would be a good alternative?).
Regardless, it is clear that the developer, TMT, will be removing any reference to “condominium” in the redesign of this project (which will take the building from 32 stories to around 22-25), as that word has become the perverbial “black cloud” in real estate and no doubt a hinderance in securing further financing.
MediaDex (traditional|digital|research)
Central Business District
Steelhead Advertising – The Elizabeth | 333 NW 9th Ave | 2,735 SF
Sasquatch Advertising – Water Tower | 5330 SW Macadam Ave | 2,100 SF
HealthDex (hospital/provider|managed care|equipment)
Eastside
Back in Action PT – 2119 NE Halsey | 1,134 SF
Westside
Dr. Irina Moga – 4970 SW Main St. | Beaverton | 2,478 SF
GeneralBizDex (mgmt consulting|finance|insurance)
Vancouver
Gold Savings Bank – First Pacific Place | 7720 NE Vancouver Mall | 2,626 SF
Eastside
Express Employment Professionals – Gresham Sq | 120 NW Burnside | 1,562 SF
Farmers Insurance – Sayler Building | 10415 SE Stark St | 2,194 SF
Posted in Vacancies, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, square feet, start up, sublease | Tagged express employment professionals, first pacific place, gold savings bank, gresham square, nike, park avenue west, sasquatch advertising, sayler building, steelhead advertising, stoel rives, the elizabeth, TMT, vancouver mall, water tower | 1 Comment »
April 20, 2009 by squarefeetpdx
THE NINES HOTEL TOPS LIST
source: NY Times
Apparently Starwood Hotels legal mayhem (they are in the midst of a lawsuit against Hilton Hotels) hasn’t deterred the reviews of their newest luxury property- The Nines Hotel. The Nines, which happens to be in Portland, Oregon, made Conde’ Naste’s “Hot Hotels” List this year. The Nines was featured in the magazine and on the Today Show (http://budurl.com/hv94) for it’s unique reuse of a department store structure and the high design interiors that carry on the theme established by Macy’s on floors one through five.
The recently debuted rooftop restaurant and lounge, Departure, offers panoramic views of Portland, the river and the Cascasdes. The hotel bar inside the atrium space is also a very cool space with lots of natural light, interesting finishes, and tons of seating.
For the NY Times travel section review of The Nines click here – http://budurl.com/zf29.
TechDex (apps|provider|hardware|var)
Westside
Pacifc Crest Technology – Lakeside Center | 8100 SW Nyberg Rd | 15,422 SF
Trek Tech – Scholls Biz Ctr | 10110-10565 SW Nimbus Ave | 2,060 SF
Vancouver
Nationwide Security Solutions – Courtyard Office | 7200 NE 41st St | 2,623 SF
Advantel – Vancouvercenter | 700 Washington St | 3,230 SF
GeneralBizDex (consulting|finance|insurance|legal)
Central Business District
Charter School Capital – 239 NW 13th Ave | 2,222 SF
Spooner & Much – Skidmore Bldg | 24 NW First Ave | 1,918 SF
Westside
Edward D. Jones & Co. – Murrayhill Prof. Suites | 14780 SW Osprey Dr | 1,423 SF
MasterCare Solutions – Lincoln Center Tower | 10260 SW Greenburg Rd | 3,384 SF
SustainDex (environmental|sustainable|clean/bio tech)
Central Business District
Det Norske Veritas (DNV) – Skidmore Bldg | 24 NW First Ave | 2,734 SF
HealthDex (hospital/provider|managed care|equipment)
Central Business District
OHSU Foundation – Salmon Building | 1121 SW Salmon St | 24,378 SF
The Goldsmith Co – 2151 NW Front Ave | 3,000 SF
Westside
Conmed Integrated Systems – Twin Oaks | 1800-1815 NW 169th Pl | 14,627 SF
Vancouver
Avada Audiology & Hearing - First Place Plaza | 12503 SE Mill Plain | 768 SF
DesignDex (A/E |Consulting|graphic d)
Westside
Black & Veatch – 5000 SW Meadows | 4,232 SF
Chermay International – Park 217 | 12156 SW Garden Place | 3,365 SF
Central Business District
Associated Design Consultants – Dekum Building | 519 SW Third Ave | 1,447 SF
Posted in Trends, Vacancies, commercial real estate, lease, new office, office space, oregon, square feet, start up, vancouver | Tagged advantel, associated design consultants, black & veatch, chermay, commercial real estate, conmed, dekum building, det norske veritas, goldsmith co, office space, OHSU, pacific crest technology, spooner & much, square feet, Starwood hotels, The Nines, trek tech | 3 Comments »
April 16, 2009 by squarefeetpdx
After numerous indicators told us the second largest mall property holder was looking at bankruptcy, the trigger was finally pulled today as General Growth Properties (GGP) filed for Chapter 11 banktruptcy protection. This is the largest real estate bankruptcy in U.S. history, with around $27 billion in debt on the books. The company intends to continue operating 200 properties (including Pioneer Place and Clackamas Town Center) at least for now. Several competitors including Simon Property Group, the largest owner of mall properties, are waiting to see what assets they can snatch up for cheap from this reorganization.
This will not be the end of major real estate holding groups going bust. The pipeline of loans coming due over the next 12 months is large and looming. GGP just hit the wall first.
For the complete story – go here http://budurl.com/gd25
Posted in Trends, Vacancies, building sale, commercial real estate, downsizing, headquarters, lease, retail brokerage, square feet | Tagged bankruptcy, clackamas town center, commercial real estate, general growth properties, ggp, pioneer place, retail real estate, Simon Property Group, square feet | 2 Comments »
April 27, 2009 by squarefeetpdx
Our First Quarter Market Report is out and the numbers are showing signs of stress under the economy. Tenants have greater leverage now as landlords are anxious to lease space and maintain rent rolls. The reality behind this is that landlords are not giving away the house in order to water the lawn. In other words, there are concessions and discounts to be had, but a landlord is not going to give rent abatement and build out allowances on a 2 year deal or less. The cost of unleased space is less than the cost of a short-term leased space with build out needs. And some submarkets (Central Business District) are not as vulnerable as others (Sunset Corridor) at this time.
Here are some of the latest numbers on vacancy, rents, and available square feet. For a complete copy of the report, contact me at kristin.hammond(at)pacific-re.com.
Central Business District (downtown core)
Overall Vacancy Rate: 8.82%
Average Rent: $22.00/SF
Available Sublease SF: 190,133 SF
Available Direct SF: 1,839,453 SF
Westside (Sunset Corridor/Hillsboro)
Overall Vacancy Rate: 19.78%
Average Rent: $17.50/SF
Available Sublease SF: 154,498 SF
Available Direct SF: 839,885 SF
Vancouver (Central Business District)
Overall Vacancy Rate: 16.42%
Average Rent: $21.00/SF
Available Sublease SF: 2,892 SF
Available Direct SF: 262,066 SF
TechDex (apps|provider|hardware|var)
Central Business District
Small Society – Dekum Building | 519 SW Third Ave | 1,800 SF
Eleven Wireless – Carson Building | 315 SW 11th Ave | 7,350 SF
SurveyMonkey – The LoveJoy | 1331 NW LoveJoy St | 4,300 SF
Elemental Technologies – 620 SW Fifth Ave | 5,812 SF
Vancouver
Echo Global Logistics – Columbia Tech Center | 1498 SE Tech Center | 5,000 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
Farmers Insurance – Sayler Building | 10415 SE Stark St | 2,194 SF
Rider Levett Bucknall – Brewery Blocks | 1120 NW Couch St | 3,393 SF
Westside
Harris Worksystems – Park 217 – Tigard| 6,499 SF
ReMax Equity Group – Tanasbourne Commons | 17933 NW Evergreen | 5,421 SF
Folexport – 10800 SW Tualatin Sherwood Rd | 21,843 SF
Eastside
Munecos Tax & Business – 300 SE 181st Ave | 3,190 SF
HealthDex (hospital/provider|managed care|equipment)
Eastside
SEDIA Biosciences Corp – Pacific Business Park | 4900 NE 122nd | 4,513 SF
NonProfDex (non profits)
Central Business District
Cascasde Aids Project – Lincoln Building | 421 SW Oak St | 15,034 SF
Posted in Vacancies, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, vancouver | Tagged columbia tech center, commercial real estate, dekum building, echo global, farmers insurance, lease, office space, sayler building, small society, square feet, survey monkey, The LoveJoy | 2 Comments »
April 24, 2009 by squarefeetpdx
Despite speculation about Boeing’s future size in Seattle, a little known subsidiary of the aircraft giant is flying high, so to speak. Insitu designs and manufactures unmanned aerial vehicles for reconnaissance/surveillance missions. Founded and headquartered in Bingen, WA, Insitu leased offices in the Columbia Tech Center park of Vancouver back in early 2008 (about 8,300 SF of office and another 4,800 SF of industrial space).
The company was recently awarded a $30M contract from the Canadian government to provide unmanned aerial vehicles for Canadian Intelligence operations in Afghanistan. Insitu is now expanding their offices and will no doubt continue to see increased revenues as the demand for highly sophisticated, unmanned surveillance equipment continues. And here I thought of the Canadians as the long lost brothers to the Swiss!
Posted in commercial real estate, headquarters, lease, new office, office space, square feet, vancouver | Tagged bingen, boeing, canadian government, columbia tech center, insitu, square feet, vancouver | 3 Comments »
April 24, 2009 by squarefeetpdx
With all of the development that has occurred in the Airport area, it’s no surprise that the General Services Administration (GSA) has expressed interest in moving some operations out that way as well. Currently, the Portland Development Commission (PDC) is in a leaseholder sales agreement with Trammel Crow for five acres at Cascade Station. Trammell Crow plans to build a 37,000 SF office building for the GSA to house administrative offices.
If this deal goes through it will be the second government services building to tentatively commit to the Cascade Station development, with the Federal Bureau of Investigations (FBI) also set to build a new regional headquarters building there (60,000+ SF). The GSA has contracted an Atlanta-based group to develop their new offices with the potential for the building to be the most high-tech of any property in Portland.
For the complete story, click here: http://budurl.com/b5z9
Posted in build to suit, building sale, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet | Tagged airport way, cascade station, commercial real estate, FBI, general services administration, GSA, PDC, portland, portland development commission, square feet, trammell crow | 1 Comment »
May 4, 2009 by squarefeetpdx
Our First Quarter Report was released early last week and the numbers bear out what we predicted back in December 2008, which is to say vacancy is up and rates are down. August is the predicted low point with flat growth through the balance of 2009. A few tips to keep in mind if you are considering new office space:
1. Keep expectations realistic. Free rent, rent reductions and above standard tenant improvement allowances are available, but they are dependent upon the location and credit quality of a tenant.
2. The suburban markets have been hit harder and are more aggressive than the downtown.
3. Some landlords will consider rewriting existing leases three to twelve months prior to lease expiration. This is a great way to take advantage of the soft market today.
For a complete copy of our quarterly report, which includes rate, vacancy and deal information, please email me at kristin.hammond(at)pacific-re.com or DM me on Twitter at FzMcFadden and request a copy.
What Other Tenants Have Paid Recently
|
SUBMARKET
|
SIZE
|
TERM
|
RATE/SF
|
FREE RENT
|
|
I-5/217 (flex)
|
8,500 SF
|
63 months
|
$19.50
|
3 months
|
|
Airport Way (flex)
|
7,000 SF
|
60 months
|
$19.00
|
0 months
|
|
Wash. Square (Class A)
|
2,500 SF
|
66 months
|
$20.50
|
6 months
|
|
CBD (Class A)
|
7,200 SF
|
63 months
|
$19.75
|
3 months
|
|
CBD Class A)
|
8,500 SF
|
65 months
|
$22.50
|
5 months
|
|
Vancouver (Class B)
|
1,612 SF
|
60 months
|
$21.00
|
1 month
|
TechDex (apps|provider|hardware|var)
Westside
AuctionPay – Triangle Corp Park | 13224 SW 68th | 14,580 SF
Zapproved – Lincoln Tower | 10260 SW Greenburg Rd | 1,500 SF
HealthDex (hospital|managed care|equipment)
Central Business District
ACS State Healthcare – 1220 SW Morrison St | 4,106 SF
Vancouver
Brighton Enterprises – Thirty Third Place | 3305 Main St | 2,461 SF
NonProfDex (charitable|education)
Eastside
BigBrothers/BigSisters Columbia NW - 1827 NE 44th Ave | 4,797 SF
Vancouver
St. Elizabeth AS Catholic HS – Sunrise Pro. Ctr | 811 NE 112th | 13,938 SF
DesignDex (a/e|consulting|graphic d)
Westside
GeoDesign – Pacific Corp Ctr | 15575 SW Sequoia Pkwy | 12,913 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Westside
Ameriprise Financial – 2 Lincoln | 10220 SW Greenburg Rd | 2,798 SF
Posted in commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, start up, vancouver | Tagged auctionpay, brighton enterprises, lease, lincoln tower, office space, relocated, square feet, thirty third place, triangle corp park, zapproved | Leave a Comment »
April 28, 2009 by squarefeetpdx
source: NREIonline
In line with an interesting trend among major technology companies in the U.S., Cisco has added an onsite health care center to its San Jose headquarters campus.
The facility is operated by a third party medical group offering primary care, pediatric, nutritional and other health-related services to the 17,000 Cisco employees on campus.
The new building, called LifeConnections Center, is gold LEED certified and features telecommunications equipment hard-wired into the building for video conferencing and medical record transfer services offered to employees both on campus and offsite. The center features wireless check in at the front desk, online scheduling and electronic medical record tracking.
Costing a cool $38 million, LifeConnections Center occupies 24,000 square feet of a 112,000 square foot building that has been retrofitted for health care services. The balance of the building is dedicated to fitness (gym) and childcare services for employees.
Corporate campus health facilities have been gaining traction as companies start to tackle the issues associated with employee health care (costs, lost productivity, recruit/retain). The goal is to achieve significant savings off of medical plans and improve the health status among employees. Intel and Pitney Bowes have also opened medical facilities on their HQ campuses.
For the complete story and details on the extensive technology built into the facility, click here http://budurl.com/krnc
Posted in Green Building, LEED, Trends, build to suit, commercial real estate, data centers, headquarters, lease, new office, office brokerage, office space, square feet | Tagged cisco, commercial real estate, corporate campus, intel, lease, LEED, office space, office trends, pitney bowes, square feet | 3 Comments »
April 29, 2009 by squarefeetpdx
source: DJC
A new library in downtown Vancouver is set to begin construction in August with an opening in 2011. The existing buildings being cleared are part of a Subaru dealership no longer operating out of the C Street location. Directly across the road from the Bank of America Financial Center and adjacent to the cinemas, the new building will be visible from I-5.
The current library takes up two buildings leased from the City of Vancouver and occupies a total of 36,000 square feet. The new building will be 83,000 square feet and offer more room for collections, programs, meeting space, displays and computer rooms. A rooftop terrace will also be accessible to patrons of the library.
The project is funded by a bond measure passed back in 2006 along with an anonymous $5 million donation. Killian Pacific, the developer, donated the land. Total project cost is estimated at $37 million.
For the complete story, click here http://budurl.com/dnmr
Posted in build to suit, commercial real estate, headquarters, lease, square feet, vancouver | Tagged bank of america, killian pacific, public building, square feet, subaru, urban development, vancouver, WA | Leave a Comment »
May 5, 2009 by squarefeetpdx
With the recent exit of numerous retail, and some office, tenants in downtown, the relocation of a thriving financial group to the Vancouver CBD is a welcomed change.
iQ Credit Union has made the move into a new headquarters building located in downtown Vancouver. The $10.5 million office building will hold 40 employees for the Vancouver-based business which had been located in Hazel Dell at 305 N.E. 81st Street.
The new office, in the city government’s former Citizen’s Service Building at 1313 Main St., was purchased by the credit union in 2007. The building has been renovated to include seismic upgrades, new exterior, and a dramatic entrance accented by a bright-red awning over a two-story wall of glass.
IQ Credit Union serves 44,000 members at 15 Clark County branches. The credit union opened as the Vancouver Teacher’s Credit Union in 1940 and then became Clark County School Employees Credit Union. The name was changed to iQ in 2004.
For the complete story, click here http://budurl.com/mtac
Posted in Vacancies, build to suit, building sale, commercial real estate, headquarters, lease, new office, office space, square feet, vancouver | Tagged citizen's service building, iQ Credit Union, office building, square feet, vancouver | Leave a Comment »
May 11, 2009 by squarefeetpdx
C.E. JOHN BUILDING LANDS BANK TENANT
Regents Bank has leased one of four offices in the C.E. John Co.’s new two-story building along the Columbia River at 2001 S.E. Columbia River Drive, next door to Beaches Restaurant & Bar.
The bank will move a staff of 13 employees into the ground-floor space this fall. Regents Bank, which is focused on business banking, now operates from a smaller waterfront office at 1701 S.E. Columbia River Drive.
source: The Columbian
TechDex (apps|provider|hardware|var)
Westside
EarthClass Mail – 15500 SW Jay St. | 10,363 SF
Verizon Wireless LLC – 6600 SW 105th Ave | 18,012 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
The Todd Organization – 4949 SW Macadam Ave. | 2,673 SF
HSVT – Gilbert Building | 333 SW Taylor St. | 3,525 SF
Westside
Wireless Apps Consulting – 275 S. Beavercreek Rd | 1,650 SF
Vancouver
Edward Jones Co – Fisher’s Landing | 16904 SE First St | 1,250 SF
DesignDex (a/e|consulting|graphic d)
Eastside
Bill Frits/Gary Hartill Designers – LeftBank Project | 240 N. Broadway | 3,279 SF
Westside
Kleinfelder West – Nimbus Oaks | 9200 SW Nimbus Ave | 13,319 SF
HealthDex (hospital/provider|managed care|equipment)
Eastside
The Oregon Clinic – Ctr for Aesthetic Medicine | 1111 NE 99th | 1,250 SF
Innovative Care Mgmt – Clackamas River Plaza | 15 82nd Dr. | 2,079 SF
SustainDex (environmental|sustainable|bio_clean tech)
Central Business District
Portland Energy Conservation – 1400 SW Fifth Ave | 14,012 SF – sublease from Microsoft
Posted in Trends, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease, vancouver | Tagged columbian, commercial real estate, earth class mail, edward jones, HSVT, innovative care management, kleinfelder, office space, peci, regents bank, square feet, the oregon clinic, todd organization | Leave a Comment »
May 11, 2009 by squarefeetpdx
Pioneer Park Building
It appears Iterasi is seeking a subtenant for their offices at the Pioneer Park Building in downtown Portland. The local software firm made the leap across the Columbia River last summer into 4,141 SF of office space overlooking Pioneer Square. Their space is now being marketed for sublease by a local real estate firm as available through April 30, 2010.
The office space has a break room, kitchen and ten private offices along with a large open space in the center. The asking rate is only $14.00/SF full service, which is a great deal for this part of town, where rates typically begin around $18.00/SF full service for similar building types.
If you are interested in the property, contact kristin.hammond(at)pacific-re.com and I will send you the contact information for inquiries on this great space or DM on Twitter at FzMcFadden.
Posted in Vacancies, commercial real estate, downsizing, new office, office brokerage, office space, oregon, square feet, start up, sublease | Tagged iterasi, lease, office space, oregon, pioneer park building, pioneer square, portland, square feet, sublease | Leave a Comment »
May 13, 2009 by squarefeetpdx
source: DJC Oregon
One of Portland’s successful startups, Elemental Technologies, has found a new home in a downtown location. The software firm has leased 4,500 square feet (just a little over half a floor) on the 4th floor of the 620 Building (620 SW Fifth Avenue). The building is 12 stories tall with 103,000 square feet of space. It is 96% occupied and last sold in 2006 for a little over $11 million.
Built in 1910, the Class C Historic building recently underwent renovations to the lobby and common areas. Elemental, previously located in Harrison Square (1800 SW First Avenue,) will now reside in the core of downtown alongside numerous other software firms who have made the move into Central Business District over the last two years.
Posted in commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet, start up | Tagged 620 building, commercial real estate, elemental technologies, lease, office space, oregon, portland, software, square feet, startups | Leave a Comment »
May 14, 2009 by squarefeetpdx
Due for completion in December 2009, the Willamette Block, located at 722 SW Second on the corner of Yamhill, is currently undergoing a $7 million renovation in preparation for the arrival of Portland Community College staff and administrators. The 35,000 square foot building used to house the U of O Duck Shop until the University of Oregon moved into the recently renovated White Stag Building on Naito and Couch.
The interior is being completely gutted with the focal point being a large, ground floor conference room with red glass walls visible from the street. The exterior will not change except for the removal of the green awnings.
Perhaps the biggest change will be the upgrade to full seismic requirements and new mechanical systems. This is intended to help the building achieve LEED Gold certification, making it the third downtown historical property to aggressively pursue LEED status (Brewery Blocks and White Stag being the other two). Other green features will include:
- Radiant panels for heating and cooling
- New boiler heating and chilling units
- Sealing existing windows
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Photovoltaic array on the roof
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System to harvest gray water for non-potable use
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Space for bike parking and showers
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Low-flow toilets and aerators to reduce water use
For the complete story, click here http://budurl.com/5puj
Posted in Green Building, LEED, build to suit, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet | Tagged commercial real estate, Green Building, LEED, office, office space, PCC, portland community college, remodel, seismic, SERA, square feet, willamette block | Leave a Comment »
May 18, 2009 by squarefeetpdx
GREEN LEASES – HOW TO AVOID PAYING TOO MUCH GREEN TO BE GREEN
With the official “push” by both state and federal government to attract and build up the sustainable practices industry, it’s no wonder that “green” leases are becoming increasingly popular across a wide swath of industries. But this is unchartered territory, so plan ahead and consider the following issues:
1. Determine Your Vision of Sustainability
Your goals should be captured in the lease terms that define what it means for the rental space to be “green” and allocate construction, design, and operation costs and responsibilities.
2. Identify Barriers to Your Sustainability Goals
The field of green leasing exists because traditional lease documents create barriers to the collaboration between landlord and tenant needed to meet sustainability goals.
3. Align Incentives and Responsibilities to Help Achieve Sustainability Goals
Once the barriers to sustainability in a lease have been identified, the lease must be modified to minimize or eliminate those barriers. There is no one-size-fits-all approach.
4. Consider the Best Time to Implement Sustainability Goals
Some green concepts can be integrated into the building at a lower cost during construction than as a modification at a later date. These include:
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Submetering of electrical and water consumption;
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Incorporation of renewable sources into the power supply; and
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Improved indoor air quality through use of products with low volatile organic compound levels.
5. Negotiate Contracts for Improvements or Upgrades Carefully
Contracts with a general contractor and architect should be specific in spelling out obligations to use certain materials, contractors and disposal methods. Clarify who is responsible for meeting the standards you strive for and describe the remedies available if the standards are not met.
For the entire report, please click on Perkins-Coie/News and Publications.
TechDex (apps|provider|hardware|var)
Central Business District
AECOM Technology – 333 SW Fifth Ave | 4,013 SF
GeneralBizDex (consulting|finance|insurance|legal|other)
Central Business District
ADP - ADP Plaza | 2525 SW First Ave | 115,180 SF renewal
Rossman Nichols – One Centerpointe Drive | 1,565 SF
Oregon Brewery Co. – 1231 NW Hoyt St | 1,145 SF
Westside
Fleet Concepts JNC – 22967 NW Bennett St | 2,794 SF
Gega, Olson, Miller, Sundberg et al – Two Lincoln | 10220 SW Greenburg Rd | 2,798 SF
SCR Inc – 8680 SW Old Tualatin Sherwood Rd | 2,000 SF
DesignDex (A/E|consulting\graphic_d)
Westside
Marshall Gardens – 5775 SW Jean Rd | 2,308 SF
NonProfDex (charitable|education)
Central Business District
Portland Community College – 9700 SW Capital Hwy | 5,300 SF
Westside
Salvation Army – 1440 SE 21st Ave, Hillsboro | 22,500 SF
Posted in Green Building, LEED, Trends, commercial real estate, headquarters, lease, new office, office brokerage, office space, oregon, portland, square feet | Tagged adp, fleet concepts, green lease, marshall gardens, office space, PCC, perkins coie, portland community college, renewals | Leave a Comment »
May 22, 2009 by squarefeetpdx
source: DJC Portland
Slated for the corner of SW 13th and Burnside, the Weave Building, a Skylab Architecture designed office building, is now including a rooftop garden with 2,500 square feet of plantings and around 750 square feet for people to enjoy them. Skylab is known around Portland for designing such popular hangouts as the Doug Fir and Departure (The Nines).
In an effort to make the building as self sustaining as possible, the ecoroof will help with storm-water management that flows down to the ground level where a planter system will treat the storm water (a natural filtration process). The landscape architect on the project, 2 ink Studio, has created a design that uses pine trees on the roof for a sculptural presence surrounded by various grasses (mexican feather and switch) for drought tolerance. The finishing touches include ferns and other shade plants for the ground planter system. Reclaimed wood will be used on the façade at the ground level.
In order to achieve the illustrious LEED Platinum rating (the goal), the 10-story, 50,000-square-foot commercial building will incorporate sustainable systems including a mechanical heating system which will take excess heat from the building’s restaurant and retail space and redistribute it throughout the building. Operable windows for fresh air, bike storage for cycling commuters and locker rooms are also part of the design.
This project is still in the speculative stages and a construction date has not been set.
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Posted in Green Building, LEED,
