With the ever-changing commercial real estate climate, 83-year-old Norris, Beggs & Simpson made a bold move to enhance its competitive advantages and position itself for future growth. The company has sold its brokerage division and will be transferring many property management accounts to Colliers International in order to focus on the capital markets divisions of the company, Norris, Beggs & Simpson Financial Services and Morrison Street Capital.
“Even though we had a number of suitors interested in buying the brokerage and property management divisions, they were not for sale. Then the Colliers opportunity presented itself and we felt like it could be a good fit. This decision really had two important elements, what is best for the future of the company and how to best take care of our people. Colliers’ culture and philosophy felt like a good match to our own and we knew would be the best transition for our employees.” explains Jan Robertson, partner with NBS.
Over the next several weeks, the entire brokerage division will transition to Colliers International, a leading global commercial real estate services firm with a well-established business in the Portland market. Details on the transition of the property management business were not disclosed other than a target completion date within the next six months.
With over 20 years’ of relatable experience as an accomplished attorney, Burgess is repositioning her career firmly within the commercial real estate industry. Her counsel and business acumen is a value to both ownership and tenants alike. Currently, she manages a growing portfolio of office and retail properties in Bend, Oregon.
Prior to NAI NBS, Burgess was the principal of her own firm and provided the full spectrum of legal work for businesses.
Mt. Tabor Brewing, a local craft brewery with a taproom in downtown Vancouver, has leased 3,000 sf at Felida Village. NAI Norris, Beggs & Simpson Real Estate Broker R. Tom Smith represented the lessor, Western Properties II, LLC. John Lee of JLL represented the lessee.
Located at 3600 NW 119th Street, Mt. Tabor Brewing is the latest tenant to commit to Vancouver’s newest retail community, Felida Village. The three-building, 20,000 sf property features both ground floor retail and second-floor residential space and is expected to deliver by February 2016.
“Felida Village’s accessibility was the perfect complement to Mt. Tabor Brewpub’s community feel and atmosphere,” said R. Tom Smith.
Mt. Tabor Brewing joins Felida Village’s growing list of strong tenants, Barre3 and Edward Jones.
The Red Lion Headquarters Building (RLH Building), a 100,362 sf Class A office building in Spokane, Washington, has sold for $12,398,600. NAI Norris, Beggs & Simpson’s President Chris Johnson and Senior Vice President MaryKay West represented the sellers, 201 North River LLC and Red Lion Hotels LP. Executive Vice President and COO David Peterson of Goodale & Barbieri represented the seller as well as the buyer, DPGB-WA-1, LLC.
Located at 201 W North River Drive along the Spokane River’s north bank, the RLH Building features six-stories of office space with an attached two-story parking garage of 252 stalls. Built in 1985, the RLH Building offers direct access to the Riverfront Park and the Centennial Trail, as well as exceptional amenities including shopping, restaurants and banks. The building’s thriving location is also home to several universities nearby.
After receiving capital improvements in 2014 to improve energy efficiency and reduce waste, the “pride of ownership” property was marketed to sell.
“Ownership was motivated by robust office market conditions and recognized an advantageous opportunity to sell,” explained MaryKay West.
The asset proved especially attractive with no existing debt to be assumed. Investors were also confident in the building’s anchor tenant, Red Lions Hotels, and its historically strong rent roll.
- Citing global uncertainly, chiefly China’s murky economy, Federal Reserve Chairwoman Janet Yellen postponed any change in its stimulus campaign. Yellen stressed that the Fed’s first increase in almost a decade was more important than the timing, and indicated interest rates will most likely be raised by year’s end.
- Though the U.S. economy is in its 7th year of steady job growth, the median American household still reported a lower income in 2014, in inflation-adjusted terms, than it did in 2013. According to the Census Bureau’s annual income report released in September 2015, the 2014 real median income was 6.5% below its 2007 level and 7.2% below its 1999 level. However, falling oil prices have slowed temporary inflation and middle-income Americans feel like they have more money to spend.
- Despite broad wage stagnation, consistent job stability has encouraged more Americans to buy homes. Portland’s sizzling residential market is evident to this fact, with home sales closing at record pace. According to Redfin Realty, more than half of homes close in Portland’s core sell in less than 10 days. Regional home prices have gone up 19% in the last two years alone. Consistent home price gains can make homeowners feel wealthier and are more likely to spend, providing a boost to the economy.
- Mayor Charlie Hales announced plans to ask the City Council to declare a housing emergency with the hope of providing shelter for all homeless women by the end of the year. It’s not clear if the emergency would have any impact on Portland’s rental crisis and housing affordability. City officials estimate roughly 1,800 homeless people lack shelter on any given night in the Portland-metro area.
- The housing emergency is seen as tangential to Portland’s skyrocketing apartment rental market. Not too long ago, Portland’s low vacancy rate was a welcome sign of a rebounding and thriving economy. Now, the surge in rates is symptomatic of a much larger, national concern. The majority of new multifamily development, both in Portland and throughout the U.S., has been priced and marketed toward the same demographic, consequently pricing out a large chunk of middle class and working class residents. In August, Axiometrics reported Portland at a 15% year-over-year average rent increase, the steepest increase in the country.
- Portland’s Central City vacancy rate barely increased to 9.48% during Third Quarter 2015.
- The Suburban’s office vacancy rate dropped to 12.63% with significant activity owed to the Sunset Corridor submarket. Nike was the biggest driver behind that submarket’s low 8.68% vacancy rate, and the sportswear juggernaut committed to the largest lease of the quarter with more than 100,000 sf at AmberGlen Business Center.
- Vancouver’s office vacancy dipped to 12.55%.
- Portland’s industrial market remained strong Third Quarter with vacancy slightly increasing to 8.86%. 7 buildings totaling 430,013 sf are currently under construction with considerable development in the Southwest I-5 submarket.
- With little activity to report, Vancouver’s vacancy rate barely increased up to 5.3%.
- The Flex market’s vacancy rate bumped up to 11.40%.
- Oregon’s industrial market may need to brace for a ‘green rush’ with heightened warehouse demand for marijuana grow operations. Rents for Colorado warehouses rose 10% in 2014 with similar projections for the Portland metro area.
- Portland’s retail vacancy held steady at 6.08% Third Quarter with 170,836 sf absorbed. 4 buildings totaling 45,267 sf are currently under construction.
- Vancouver’s vacancy dwindled down to a low 8.34%.
- Grocery and supermarkets continue to be a major source of retail activity for the Portland metro area. Lake Oswego will soon welcome Whole Foods’ newest venture, Whole Foods 365. Targeted toward millennials and focused on value, the new store will be much smaller.
- Portland’s multifamily market continues on a tear without any signs of slowing down. Though it barely increased, the Portland metro-area benchmarked another low vacancy rate at 2.45% for Third Quarter.
- Though the rate of construction has subsided, capital continues to flood the market as evidenced by the soar in multifamily property sales.
- Not too long ago, Portland’s low vacancy rate was a welcome sign of a rebounding and thriving economy. Now, the surge in rates is symptomatic of a much larger, national concern. In July, Vancouver showed a 9.8% year-over-year increase in rent and Portland posted a 8.5% increase. In August, the data grew grimmer with Axiometrics reporting Portland at a 15% year-over-year average rent increase, the steepest increase in the country.
Edward Jones, an investment company, has leased 974 sf at Felida Village. NAI Norris, Beggs & Simpson Real Estate Broker R. Tom Smith represented the lessor, Western Properties II, LLC. Mike Giammanco of Cushman & Wakefield represented the lessee.
Located at 3604 NW 119th Street, Edward Jones joins Portland-founded Barre3 Studio in Building 3 of the newly delivered Felida Village, which completed construction earlier this year. The three-building, 20,000 sf property features both ground floor retail and second-floor residential space.
“Felida Village is well-positioned with excellent exposure and accessibility,” said R. Tom Smith. “Edward Jones is an ideal complement to the other tenants.”
Edward Jones is expected to move-in by the end of October 2015.
Party Fair, a discount party superstore, has leased 9,500 sf at the Tigard Triangle Center at 7297 SW Dartmouth Street. NAI Norris, Beggs & Simpson Associate Vice President Jack Gallagher and Real Estate Broker R. Tom Smith represented the tenant. Matt Sichel of Elliott Associates represented the landlord, American Industries, Inc.
Predominately an East Coast retail chain, Party Fair was founded in 1983 and currently boasts over 24 stores. Wanting to establish and grow a West Coast presence, Party Fair looked to retail experts on how to break into the Portland market.
“The Tigard Triangle Center is a terrific regional location and an ideal space for Party Fair’s first West Coast location,” explained Jack Gallagher.
Anchored by Winco, PetSmart and OfficeMax, the Tigard Triangle Center is a well-positioned community center within the heart of Tigard, Oregon. Offering excellent exposure and a high volume of foot traffic, the multi-tenanted property was an obvious choice for Party Fair.
Party Fair is expected to move-in by early October 2015.
A former Pearl District warehouse facility is getting a major makeover.
The property at NW 14th and Hoyt Street was previously owned and operated by Premier Press as a specialty printing business. An entity controlled by Meriwether Partners LLC acquired the property last year with plans to renovate the building.
“We were attracted to the urban location and the opportunity to preserve the character of the existing building,” said Robert Briscoe, Principal of Meriwether Partners.
In an effort to capture the industrial history of the Pearl District and respond to the demands of today’s tenants, the redevelopment will offer both industrial design and office innovation.
“1440 NW Hoyt embraces the history and transformation of the Pearl,” noted Briscoe. “The project will maintain the structure’s integrity and its existing materials, and will have cutting-edge office space.”
The most ambitious aspect of the redevelopment is the addition of four floors of office space. Each additional floor will feature an open floor plan with 13-foot ceilings and expansive 9-foot windows with operable bays. The top floor will be an executive penthouse with two outdoor roof decks, one facing toward the West Hills and another to the east with views of Mt. Hood.
The property will also feature exposed wood, concrete and steel, abundant natural light, a comprehensive seismic upgrade to code, new building mechanical systems and new restrooms and common areas with shower and bike parking. Building signage opportunities also provide significant exposure from Interstate 405 and visibility throughout the Pearl District.
“This is a creative take on Class A office,” explains Chris Johnson, President of NAI Norris, Beggs & Simpson. “The redevelopment is in response to tenant expectations of having a seamless transition between ‘live, work, and play.’”
The project is expected to deliver by Third Quarter 2016. Upon completion, 1440 NW Hoyt will offer approximately 75,000 square feet of creative Class A office space.
Robert Briscoe, Principal
Chris Johnson, SIOR, President
Northwest Regional Educational Services (Northwest Regional ESD) has relocated and expanded to 23,415 sf at Building E of Nimbus Oaks. NAI Norris, Beggs & Simpson’s Senior Vice Presidents Jennifer Medak and John Medak and Associate Vice President Tom Dechenne represented the lessee. Senior Vice President and Partner Josh Schweitz and Broker Travis Parrott of Kidder Mathews represented the lessor, IPERS (Illinois Public Employees Retirement System).
The relocation and expansion proved quite challenging for the former tenant of Woodside Corporate Park, an office campus purchased by Nike in 2013. The property’s sale meant inevitable displacement for Northwest Regional ESD upon their lease’s expiration.
“It was difficult finding existing space while competing against Intel and Nike as well as other displaced tenants in today’s tight market, but we were able to deliver with Nimbus Oaks,” said Jennifer Medak.
Located at 9560 SW Nimbus Avenue, Nimbus Oaks was an ideal, centralized spot for Northwest Regional ESD, which is the largest and most diverse Education Service District in the state of Oregon. Northwest Regional ESD currently serves over 118,000 children throughout 4 counties (Clatsop, Columbia, Tillamook and Washington), 20 school districts and 184 schools.
Northwest Regional ESD was looking to find a facility that could accommodate their specific use, buildout and location. Nimbus Oaks was a good fit.
Yet, with the expiring lease’s deadline looming, Nimbus Oaks needed to be ready rather quickly to accommodate its newest tenant’s special requirements. The space would need to support Northwest Regional ESD’s Special Student Services, a program which seeks to improve the lives of children with disabilities and those at risk.
A Special Student Services facility required specific zoning, upgraded occupancy ratings, adequate classroom sizes, raised ceiling heights for play areas, ample parking for buses without overlap, and area for teacher’s office space. Thankfully, additional support was facilitated by collaborative partnerships with LRS Architects and the City of Beaverton.
“LRS Architects and the City of Beaverton were instrumental in expediting the confirmation of proper zoning requirements and occupancy rating for Nimbus Oaks,” explained Jennifer Medak. “As a team, we understood the special contingencies upfront, so we could avoid the typical long turnaround and address the space needs immediately.”
LRS Architects worked closely with the landlord and tenant to design a strategic layout of the space, so that neighboring tenants remained unaffected by the school’s presence. With an expected move-in by November 1, Nike also remained tremendously cooperative and supportive of Regional Northwest ESD.
“All parties truly came together to champion Northwest Regional ESD because at the end of the day these are our kids and our neighbors,” added Jennifer Medak.
Nike, Inc. has signed the largest office deal to date in the Portland-metro area, inking a 105,005 sf lease at the AmberGlen Business Center campus managed by Unico Properties. NAI Norris, Beggs & Simpson’s President Chris Johnson, Senior Vice President MaryKay West and Vice President Brandon Frank represented the lessor, AmberGlen Office Corporation. Executive Managing Director Bradford Fletcher of Newmark Grubb Knight Frank represented the lessee.
Nike’s lease is the third major transaction this year for AmberGlen Business Center. In March, Portland-based retailer Columbia Sportswear leased 27,379 sf at the 1385 Building and earlier this month Allion USA Engineering Services expanded to 52,746 sf at Building 1365.
“This lease is a continuing trend of existing tenants in the Sunset Corridor expanding their footprint,” noted Brandon Frank.
AmberGlen is a 217-acre business campus just 20 minutes from downtown Portland.