Posted in build to suit, building sale, commercial real estate, downsizing, Forecast, headquarters, lease, new office, office brokerage, office space, square feet, start up, sublease, Vacancies, vancouver, tagged cascade park, CBD, evergreen plaza, lease, nautilus, office space, rental rates, square feet, vacancy, vancouver on July 30, 2009 |
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Our Second Quarter Report for the Vancouver submarket is out and the news is less than uplifting. All of the Vancouver submarkets are now in double digit territory for vacancy rate. Rental rates are still on a steady decline while tenant improvement allowances are becoming more challenging to pencil out for landlords. Lease terms are shorter, 2-3 years, with most tenants exercising renewal options as they remain in a “wait and see” mode.
Office Vacancy Rates
With the recent announcement of Nautilus giving back nearly 400,000 square feet of space, the increase in available space in the Cascade Park submarket is nearly doubled from the previous quarter. The likely tenant candidate is a large company, from outside of the region, seeking a campus-like setting and tax breaks. This will not be an easy challenge to tackle in the current economic climate.
Office Rental Rates
New on the market, Evergreen Plaza (611 W Evergreen) is one of the few opportunities available with a stronger tenant mix ( State and County agencies). The current asking price on this 64,975 SF property is $6,090,000 with projected returns of:
Year 1 Return: 13%
Projected 15 Year Cash Flow: $16 million
Projected 15 Year Tax Savings: $6 million
The Columbian remains tied up in legal discussions and fairly inactive from a new tenant perspective due to the uncertainty of ownership.
For a copy of the complete report, email me with Vancouver Snapshot in the subject header.
kristin.hammond(at)pacific-re dot com
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Posted in commercial real estate, headquarters, lease, new office, office brokerage, office space, square feet, start up, sublease, Vacancies, 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 on March 30, 2009 |
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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)
Blacktoe Medical III Inc - 12725 SW 66th Ave | 2,457 SF
Oregon Post Adoption – Pacific Plaza | 2950 SE Start St | 2,441 SF
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)
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
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