Oregon ranks #1 among the states when it comes to the portion of the GDP which can be attributed to manufacturing. Oregon’s manufacturing, specifically durable goods, continues to be a strong contributor to our economy. Durable good manufacturing is very cyclical and jobs are directly tied to overall output. This will bode well for Oregon’s employment as production continues to accelerate. A trend of expanding and bringing manufacturing back into the states, “reshoring”, has recently been seen in Portland by the likes of Oracle and Shimadzu.
Posts Tagged ‘rental rates’
Posted in commercial real estate, Forecast, lease, oregon, portland, renewal, square feet, Trends, vancouver, tagged chart of the week, commercial real estate, GDP, lease, portland, rental rates, square feet, squarefeetpdx, vancouver on March 22, 2013 | Leave a Comment »
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 on October 5, 2009 | Leave a Comment »
Epicor – Pacific Corp Center | 6650 SW Redwood Lane | 3,517 SF renewal
East2West – 4815 SW Macadam Ave | 5,100 SF
Benefit Partners – Bank of America | 121 SW Morrison | 2,450 SF
H5 Ventures – Macadam Center | 5125 SW Macadam Ave | 3,089 SF
Oak Tree Insurance – Kruse Woods II | 5335 Meadows Rd | 4,200 SF
Sacagawea Inc – Columbia Tech Center | 1301 SE Tech Center Dr | 10,692 SF
GovDex (government agencies)
Washington State Auditors – EastRidge Biz Park | 9611 NE 117th | 2,868 SF
NonProfDex (charitable|education|trade assoc)
Northwest Reading Clinic – EastRidge Biz Park | 12000 NE 95th | 502 SF
Posted in commercial real estate, Forecast, headquarters, lease, LEED, new office, office brokerage, office space, oregon, portland, square feet, start up, sublease, Trends, Vacancies, vancouver, tagged auctionpay, bradshaw international, commercial real estate, lease, northstar consultants, office buildings, office space, oregon education association, plas2fuel, relocation, renewal, rental rates, square feet, strategic investment group, sublease, trammell crow residential on August 10, 2009 | Leave a Comment »
NonProfDex (charitable|education|trade assoc)
Oregon Education Assoc. – MMC Building | 333 SW 223rd, Gresham | 3,445 SF
AuctionPay – Tigard Triangle Corp Ctr | 13221 SW 68th | 14,580 SF renewal
Bradshaw International – 4800 SW Macadam | 2,794 SF
Strategic Investment Group – River Forum I | 4380 SW Macadam | 2,143 SF
Trammell Crow Residential – One Pacific Sq | 220 NW Second | 3,525 SF
NorthStar Consultants - Riverside | 5100 SW Macadam | 7,625 SF renewal
Salt Grotto LLC – Lovejoy Square | 908 NW 14th Ave | 1,900 SF
SustainDex (environmental|sustainable|clean/bio tech)
Plas2Fuel Corp – Wall Street Industrial Park | 7904 Hunziker | 22,307 SF
Posted in commercial real estate, downsizing, Forecast, lease, new office, office brokerage, office space, square feet, start up, Trends, tagged blend and extend, extension, lease, office space, renewal, rental rates, square feet, sublease, tenants on August 3, 2009 | Leave a Comment »
Tenants may have the opportunity to take advantage of lower rental rates through a process termed “Blend and Extend”. What this means is that tenants with two years or less left on a lease can secure lower rent today in exchange for extending their lease for an additional three to five years. Tenants achieve an immediate savings to their bottom line and the landlord maintains a tenant for the long term. Some landlords are reluctant to do this, betting the market will improve over the next couple of years.
Tenant occupies 10,000 SF and is three years into a five year lease. Fair market value at the end of the third year is $22.00/SF. Tenant agrees to add three years on to their lease term in exchange for an immediate rent reduction.
$85,776+ savings in the first two years
The Tenant saves 16% in rent over the next two years and their overall rent is reduced over the next five years due to the discount in the market rent. The landlord benefits from no further out-of-pocket tenant improvements, potential lost rent if the tenant moves, and additional real estate fees paid out to find a new tenant.
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 | Leave a Comment »
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.
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.
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
Posted in commercial real estate, office brokerage, office space, Trends, tagged commercial real estate, credit market, landlords, leasing, occupancy, office properties, office space, renewals, rental rates, square feet, tenants, vacancy on March 18, 2009 | Leave a Comment »
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).