The ft.² Report &#187; kruse way

Ebara Technologies – PSI Biz Park | 6199 NW Casper Pl | 5,169 SF

PMSI - Yeon Business Ctr | 3250 NW Yeon Ave | 13,750 SF

Razorfish LLC – 1532 SW Morrison St | 7,468 SF sublease

Automated Control Systems – EastRidge Biz Park | 9611 NE 117th | 2,014 SF

GeneralBizDex (consulting|finance|insurance|legal|other)

ADP – ADP Plaza | Arthur | 115,000 SF renewal

Hire Factor Inc – Dekum Building | 519 SW Third Ave | 1,447 SF

Raymond James Financial - Mill Plain One | 201 NE Park Plaza | 1,989 SF

MacLaren & Whearty – Fairway Center | 9115 SW Oleson Rd | 2,633 SF

NonProfDex (charitable|education|trade assoc)

Albertina Kerr Centers – Cascade Plaza West | 12655 SW Center St | 771 SF

AcerLogic Educational Svcs – Mtn Park MarketPlace | 4 Monroe Pkwy | 2,672 SF

Portland Baroque Orchestra – Jeffrey Center | 1020 SW Taylor | 1,301 sF

Eastside

Portland Comm. Land Trust – Patton Park | NE Interstate Blvd | 1,514 SF

HealthDex (hospital/provider|managed care|equipment)

Bridgeport Eye Physicians – 20015 SW Pacific Hwy | 3,259 SF

Who’s On the Move – Week Ending 3/27/09

squarefeetpdx — Mon, 30 Mar 2009 18:58:22 +0000

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

Eastside

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

Evanta – Koin Center | 222 SW Columbia St | 6,626 SF

Who’s On the Move – Week Ending 2/27/09

squarefeetpdx — Mon, 02 Mar 2009 21:23:30 +0000

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)

Struck Creative - Skidmore Building | 24 NW First Ave. | 2,752 SF

DesignDex (A/E|consulting|graphic d)

Aras Systems – Cascasde Plaza West | 12655 NW Center St. | 4,731 SF

HealthDex (hospital/provider|managed care|product provider)

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

Who’s On the Move – Week Ending February 6, 2009

squarefeetpdx — Mon, 09 Feb 2009 18:29:16 +0000

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)

E-Mark Solutions- Nimbus Corp Center, Beaverton | 8,986 SF

DesignDex (A/E|consulting|graphic d)

PACE Engineers- 5000 Meadows Road | 7,960 SF

TechDex (apps|provider|hardware|var)

Nationwide Security Solutions- Courtside Building | 7200 NE 41st St. | 2,623 SF

Who’s On the Move – Week Ending 1/23/09

squarefeetpdx — Mon, 26 Jan 2009 21:43:44 +0000

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)