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.
Creative engineering firm Allion USA Engineering Services has expanded to 52,746 sf at Building 1365 as part of 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. Vice President Charlie Floberg of JLL represented the lessee.
“This deal is yet another existing tenant choosing to deepen their presence in the Sunset Corridor,” noted Brandon Frank. “The major expansions come from a diverse tenant base led by technology companies, local apparel giants and several medical-related firms. This trend is a testament to the strength of the Sunset Corridor.”
AmberGlen is a 217-acre business campus just 20 minutes from downtown Portland.
Walgreens Specialty Pharmacy has expanded their offices at 9775 SW Gemini Drive as part of the Nimbus Corporate Center campus, growing from 29,806 sf to 47,938 sf. Walgreens Specialty Pharmacy will occupy both Buildings 1 and 2. NAI Norris, Beggs & Simpson’s Senior Vice Presidents John Medak and Jennifer Medak represented the lessor, Shorenstein. Managing Director Chris Elsenbach of JLL represented the lessee.
Nimbus Corporate Center is a 16-building office campus located in Beaverton, one of Portland’s leading suburban communities, just minutes southwest from downtown Portland.
Liberty Door & Window, a manufacturing startup, has leased 12,330 sf at Vancouver Commerce Park. NAI Norris, Beggs & Simpson’s Vice President Tamara Fuller represented the lessee. Dave Brown of Columbia Commercial Properties, LLC represented the lessor.
With over 50 years’ of combined experience in the industry, the owners of Liberty Door & Window recognized a unique opportunity in Vancouver. Unlike major home improvement stores, Liberty Door & Window offers quality, detailed and customizable services.
“There’s high demand for custom doors and windows, but locally, there aren’t any available resources to meet that need,” explained co-owner Felipe Hernandez.
Liberty Door & Window sought a warehouse with access to dock high doors and an office to expand their growing showroom. Considering Vancouver’s tight industrial market and limited space options, finding that ideal location proved challenging.
“Vancouver Commerce Park was the best fit because of its centralized location and competitive rates,” said Tamara Fuller. “The lessor was willing to accommodate Liberty Door & Window’s needs, allowing for an easy transition and move-in.”
Located at 11006 NE 37th Circle, Vancouver Commerce Park provides easy access to I-205 and SR 500.
Wheeler Dealer Liquidation, a retail store specializing in discount products and merchandise, has leased the Bartel Building, a 17,780 sf property located at 1740 Geary Street. NAI Norris, Beggs & Simpson Associate Vice President Jack Gallagher and Real Estate Broker J.T. Sand represented the lessee.
Motivated by successful, existing stores in Eugene, Salem and Woodburn, Wheeler Dealer wanted to expand their presence in Albany. The former location of Save-A-Lot Grocery Store was ideal with its excellent parking, high traffic intersections, incredible exposure and easy access to I-5.
“As Wheeler Dealer’s fourth and largest location to date, we were thrilled to assist them in their expansion and continued growth,” said J.T. Sand.
The popular Oregon-based retail chain offers closeout deals on a range of brand-name and generic products, groceries, gifts and apparel.
The former Multnomah Greyhound Park (MGP), a rare parcel of 31 mixed-use acres in the Portland metro-area, is finally up for grabs.
Located at 944 NE 223rd Avenue in Wood Village, MGP has long been considered a business and development asset, adaptable to a wide range of commercial uses. Now, to borrow an industry phrase, the mixed-use property is “shovel ready” and in need of the right buyer. NAI Norris, Beggs & Simpson Senior Vice President Jack McConnell and Vice Presidents Denis O’Neill and Ken Boyko are leading the property’s selling efforts.
“This could be a unique opportunity for rapidly growing companies, especially tech companies opting to expand or move, but not wanting to compete with downtown’s escalating rates,” said Ken Boyko.
Currently, the metro-area’s major office activity is driven by tech companies seeking refuge from high rent cities with limited space options like San Francisco and Seattle. In contrast, Portland offers a deep talent pool and comparatively low cost of living. With ample public transportation and nearby affordable housing options, MGP is just 15 minutes from Portland International Airport and 25 minutes from downtown Portland.
“The property’s current transformation as a residential and employment destination is essential to the economic development of Wood Village as well as Portland because it’s one of the few remaining large, open pieces of land,” explained Denis O’Neill.
Iconic to Portland for almost 60 years, the MGP originally opened as the state’s greyhound racing track in 1957. Over the decades, the destination entertainment venue changed several names before becoming Multnomah Greyhound Park during its peak in 1991. However, after consecutive years of slipping attendance and waning popularity in the late 90s, MGP finally shuttered and closed its doors in 2004.
As a premier chunk of developable land, the property was targeted for the state’s first nontribal casino – a splashy $500 million bid. Yet, stalled efforts in the aftermath of the recession led to defeated ballots in both 2010 and 2012. Since then, the expansive 31-acre property has patiently waited for change.
The City of Wood Village and Multnomah County strongly back the new development, having already master planned the property with a Town Center zoning designation. The zoning allows a broad range of uses, including a minimum of 308 residential units with no maximum. Ideally, the City of Wood Village wants a balance between residential and employment.
“The City of Wood Village has invested $3.5 million in infrastructure for the Town Center, improving streets on three sides and installing three lighted intersections,” remarked City Administrator Bill Peterson. “As a ‘shovel ready’ project, only minimal off-site improvement is necessary, like an updated traffic study.”
Such united public support also includes readily available urban renewal financing with assurances of expedited permits for new construction or renovations of existing improvements. Even a public private partnership is possible.
“The wait is over,” added Jack McConnell. “The timing is right with advantageous market conditions and the support is there.”
- 2014 was the best year for American job gains since 1999, and 2015 has only continued to build upon that momentum. U.S. employers stepped up hiring in February and the jobless rate fell to its lowest level since 2007, which could put pressure on the Federal Reserve to raise interest rates in June. Whether it’s June or not, 2015 is widely expected to be the year that Chairwoman Yellen presides over a rise in short-term interest rate from near zero. The goal is to push rates higher across the spectrum to avoid fueling economic and market bubbles. Critics voice concern that the Fed will have difficulty increasing longer-term rates, potentially disrupting economic stability. Most economists consider a steep yield curve, or a wide gap between short-term and long-term rates, very healthy. Conversely, a flat yield curve—where longer-term rates are below those of short-term ones—has foreshadowed poor economic times and recession. That last happened June 2007, shortly before the financial crisis.
- Rises in consumer prices suggest inflation pressures are slowly building back up after succumbing to a seventh-month slide in oil prices. Since June 2014, gas prices have plummeted, effectively lowering inflation. In February 2015, the modest 2.4% rebound in gas costs and broad gains in other categories lifted consumer prices for the first time in four months. The Commerce Department also announced that sales of newly built homes surged nearly 8% in February to the highest level since early 2008. Such sales are only about a tenth of all home purchases, but a sustained pickup could encourage more construction and consequently more jobs.
- The U.S. Census Bureau reported the Bend metro-area was among the nation’s fastest-growing from 2013 to 2014. With a population increase of approximately 2.7%, Bend posted the 7th fastest growth rate in the county. In comparison, the Portland metro-area also grew by an estimated 26,000, roughly about 1.7%.
- With steady population gains, it’s becoming increasingly difficult for the average Portland metro-area resident to buy a house. Nationally, home price appreciation outpaced wage growth by 13 to 1. In the Portland-Vancouver-Beaverton area, RealtyTrac reported the average weekly wage only rose from $938 in December 2012 to $978 in December 2014. Median home prices rose from $225,000 to $259,777 during the same period.
- The intense competition over the city’s limited creative collaborate lifestyle workplaces continues despite Portland’s Central City vacancy rate nudging up to 9.47% this quarter,
- Last year, a Seattle-based developer bought 1320 SW Broadway. Extensive renovation began in March and the project will offer 170,000 sf of Class A creative space downtown.
- Suburban’s vacancy rate remained strong despite its vacancy rate increase to 13.81%. Tech firm Eid Passport signed a lease to expand its headquarters at 5800 NW Pinefarm Place in Hillsboro. The new lease will add more than 63,000 sf to the company’s existing 72,000 sf office.
- Portland’s industrial vacancy edged up to 7.02% during First Quarter. The metro-area is still reacting to major industrial growth and development, which currently accounts for 7 projects totaling 1,184,385 sf.
- The Southeast submarket has experienced tremendous tightening with its 3.15% vacancy rate, a near 5 percentage point drop from just a year ago.
- During First Quarter 2015, the Portland metro-area’s retail vacancy rate declined to 5.89%, the lowest since Fourth Quarter 2008.
- Vancouver’s retail vacancy rate dropped slightly to 7.92% with 49,723 sf total absorption.
- Portland’s multifamily market continues to be a tour de force in 2015. The market’s vacancy rate dipped to 2.7% with broad-based gains in rent and construction.
- Though high demand and high rents are currently fueling Portland’s apartment boom, there is serious question if the city can sustain such remarkable growth.
University Plaza, a 22,500 sf office property in Vancouver, Washington, has sold for $5,150,000. NAI Norris, Beggs & Simpson’s Associate Vice President Doug Bartocci represented the seller, FFLP MTH, LLC. Brian Petro of Horizon Real Estate Group represented the buyer, Sea Mar Community Health Centers.
Over the past year, office sales have increased significantly in response to Vancouver’s tightening market. With low interest rates and low inventory, lenders are hungry to provide owner-occupant loans. It’s an advantageous climate for buyers, especially ideal for growing business sectors like medical office.
“With quality, existing medical space available, and the ability to move-in quickly, University Plaza was an obvious choice for Sea Mar Community Health Centers,” explained Doug Bartocci.
Located at 14508 NE 20th Avenue, University Plaza is part of the developing Salmon Creek community next to Kaiser Permanente and Washington State University. Sea Mar Community Health Centers, founded in 1978, is a community-based organization committed to providing quality, comprehensive health and human services in Washington state.
Padden Industrial Park, a 40,870 sf, 5-building fully leased property in Vancouver, Washington, has sold for $3,250,000. NAI Norris, Beggs & Simpson’s Vice President Garret Harper represented the buyer, Herschell Management, LLC. Jim Lewis of Cushman & Wakefield represented the seller, Heuvel Enterprises, LLC.
Since January 2014, Vancouver has had the lowest industrial vacancy rate in the Portland-metro area. The submarket benchmarked a robust 2.83% vacancy for Fourth Quarter 2014 and is expected to continue this trend for First Quarter 2015. These conditions have since created advantageous investment opportunities for existing properties, including Padden Industrial Park.
“Padden Industrial Park is a well-positioned and fully-leased property with local companies as stable tenants,” explained Garret Harper. “It was an excellent investment opportunity for that particular price range, which is becoming harder to achieve in that submarket.”
Located at 7613 NE St. Johns and 4601 NE 78th Street, Padden Industrial Park features industrial/flex spaces from 1,200 to 3,500 sf and has undergone recent upgrades including parking lot repair, T-8 lighting fixtures, electrical and roof.
GBD Architects renewed and expanded its lease to 16,489 sf at the Brewery Blocks II, a five-block shopping and professional destination in the heart of Portland’s Pearl District. NAI Norris, Beggs & Simpson’s President Chris Johnson, Senior Vice President MaryKay West and Real Estate Broker Carter Beyl represented the lessee. Senior Vice President Eric Haskins of Jones Lang LaSalle represented the lessor, MEPT Brewery Block 2, LLC.
Established in 1969 in Portland, Oregon, GBD has throughout its history played a significant design role in transforming Portland’s central city to become what it is today. Every GBD project is guided by a mission to build beautiful, responsible spaces that move and elevate people. A prime example of their work is the Brewery Blocks, a sustainable, mixed-use, multi-block project that has garnered international attention for its urban design qualities. Partnering with esteemed developer Gerding Edlen, the former site of the Blitz-Weinhard Brewery was repurposed into today’s thriving urban epicenter. NAI Norris, Beggs & Simpson later represented the property in its sale. Naturally, GBD planned to share in the space they created and relocated offices to the Brewery Blocks II in 2002.
“GBD Architects renewed and expanded their lease because they want to maintain a presence in an area they helped shape from the ground up,” explained Carter Beyl. “It’s a reflection of their confidence and commitment to their work.”
As a testament to the quality of GBD’s work with Gerding Edlen, the Brewery Blocks recently won the prestigious 2014 Urban Land Institute’s Global Award for Excellence. Their expansion included 1,647 sf on the third floor in addition to their fourth floor offices.