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)
LoanRefine.com – 1940 NW 24th Ave. | 3,500 SF
New Relic – Commonwealth Bldg | 421 SW Sixth | 1,287 SF
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)
Empire Group – Lovejoy Square | 930 NW 14th | 4,000 SF
DesignDex (A/E|consulting|graphic d)
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.
