In light of the Portland Business Journal’s recent 2014 Women of Influence Awards, we’d like to take the opportunity to honor the contributions of our extraordinary women associates. Jan Robertson became the first woman to head a major brokerage firm in 2011 when she was promoted to CEO – proving that behind our great company are even greater women.
Carter Beyl has joined NAI Norris, Beggs & Simpson as the newest addition to the Portland brokerage office team. Beyl specializes in the leasing and sales of office properties throughout the Portland metropolitan area.
After graduating in the PSU Real Estate Finance program, Beyl spent two years honing his brokerage experience with Apex Real Estate Partners as an Associate Commercial Broker where he focused on office tenant representation. He assisted clients with their acquisition, disposition and leasing of office space, as well as economic consulting and space-efficiency audits.
He is a licensed real estate broker in Oregon and a member of the Commercial Association of Brokers Oregon/SW Washington (CAB).
JJ Wood Energy, LLC has purchased 14-acres of industrial land in Longview, WA for $1.5 million. NAI Norris, Beggs & Simpson Associate Vice President Ron Kawamoto and Senior Real Estate Broker Sierk Braam represented both the buyer and seller. The land will supplement the expanding business of bark manufacturer, Swanson Bark Wood Products, Inc.
Conveniently adjacent to Swanson Bark’s business, the vacant 14-acres found on 80-90 Tennant Way proved to be a perfect opportunity of both time and location. The land will be a welcome addition to Swanson Bark’s existing 68-acre property as well for the impending seasonal gardening rush.
“It was a great opportunity that benefited both parties, which made for a pretty straightforward negotiation,” Kawamoto explained. “The timing and location could not have been better.”
Founded in 1928, Swanson Bark has evolved and grown into a successful full-service soil business specializing in natural rock, soil mixtures, landscaping materials, as well as 10 different types of bark.
We’ve just completed our newly rebranded First Quarter Market Reports! Not only does it feature a brand new format, but the report ensures accuracy due to the annual truing up of our database.
- The Central City office market’s vacancy rate saw little change at 10.92% with negative absorption of 111,443 sf.
- With a vacancy rate of 14.6%, the Suburban office market benchmarked another record-low since 2008, and ended First Quarter with a positive 253,906 sf absorption.
- The Vancouver office market’s vacancy was all but unchanged at 10.38%, having several lease-ups under 3,000 sf. Activity may pick-up within the year, especially since Clark County attained a major economic milestone by recovering all of its 10,000 jobs it lost in the Great Recession.
- Industrial vacancy dropped to 8.91% with positive absorption of 650,843 sf. This is the lowest vacancy and highest absorption since 2007.
- As the second lowest rate since 2001, the 11.35% flex vacancy this quarter reflected the expansion seen in the latter half of 2013.
- The First Quarter retail vacancy remained flat at 6.20% from 2013 over last quarter.
- Albertsons announced two more Clark County grocery stores closures, and Nordstrom said it will close its stores at Westfield Vancouver mall and Portland’s Lloyd Center in 2015.
- Portland currently reigns as the seventh hottest apartment boomtown, ahead of both Seattle and San Francisco.
- The multifamily market boasted another healthy 2.46% vacancy rate with rents jumping north of $235 from last quarter and both permits and construction still on the climb.
Polygon Northwest Company, LLC bought a 9.67-acre piece of land in Hillsboro, for $3.4 million. The metro and city of Hillsboro sold the land to become a single-family residential community. NAI Norris, Beggs & Simpson Vice President Denis O’Neil and Associate Vice President Mike Tharp represented the seller.
Located at NW Quatama Road and NW Cornelius Pass Road in Hillsboro’s Orenco Station neighborhood, the 9.67-acre lot was originally part of a sprawling 50-acres owned by Hillsboro. The lot will be transformed into new custom-built housing while the surrounding land, still owned by Hillsboro, will become a public park.
“This deal was a win-win for everyone,” O’Neill explained. “It’s a major attraction for Hillsboro and it creates community. It’s great news for the local economy too.”
Polygon Northwest is a homebuilder and developer of single-family homes, town homes and condominiums based in Bellevue, WA.
Doug Jones on office
So much can change in a city over the course of three decades – especially in Portland, which seems to reinvent itself overnight. Yet the effect on Portland’s office market during the past 30 years of economic booms and busts has been relatively moderate as evidenced by its consistent downtown Class A office rental rates.
Unlike other consumer goods, the cost of Class A office space has remained surprisingly stagnant over the past 30 years. For example, unleaded gasoline sold for $1.21 per gallon in 1984 versus $3.46 today. In contrast, office space on the top floor of the newest high-rise building downtown rented for approximately $30 per square foot in 1984, and the same space would rent for close to that amount today.
Why? In short, like many other cities, Portland has a downtown office market that has experienced increased competition from the emerging suburban office market. In 1984, the unadulterated farmlands of Kruse Way and the Sunset Corridor were only beginning to transition for an impending flight to the suburbs. Low-cost suburban office and flex space became the hot new trend.
Fast-forward to today, with our economy in recovery mode and the urban growth boundary reigning in suburban expansion, and suburban office rates are starting to increase. The current trend in office space has shifted back from the suburbs to the central city markets, including the downtown Central Business District, the Pearl District and the close-in eastside.
High demand for creative and green office spaces are a symptom of Portland’s revitalized urbanization, largely driven by young Millennial professional and creative types. And the surge of interest for more close-in urban options, despite consistent rental rates, has only fueled and bolstered Portland’s competitive office market.
Michael Hale on industrial
The Central Eastside is losing its foothold as a safe haven for manufacturers, as it evolves into Portland’s next trendy hub of culture and community. The growing pains speak to an undercurrent of change much deeper than a simple market shift, but rather to the area’s identity crisis as a new intersection of gritty and mainstream. Of course, the area’s manufacturing and distribution roots are part of its alluring charm, but its marketability is proven by rising property values and spikes in rent.
Traditional industrial space is being repositioned to fit the growing demand, and major developments are slated for the next 18 months. As the area gains more retailers, office users and residents, existing industrial tenants face tough competition. Even walking down the street has become a challenge in identifying whether a business is manufacturing or creative, when in recent past it had been without question.
The gentrification process is not new to Portland, as exampled by the Pearl District. Yet, the big push for revival of the Central Eastside is helmed by Portland Mayor Charlie Hales, who is working to make it a formidable employment district for years to come. These major efforts include an overhaul to transportation with the addition of bike lanes and accessibility to light rail beginning in 2015 with a new transit bridge.
The efforts by the city aren’t without merit, because the region’s population growth in the past five years has been driven by young professional Millennials hungering for close-in urban living. Demand in this new submarket is for accessibility to transportation, work, culture and community all within a five-mile radius. Seizing this opportunity, the Central Eastside is now primed to accommodate.
Pam Lindloff on retail
Today, landlords of retail properties are seeing a strong level of interest in space from a new category of tenant – the medical community. All types of medical service providers are considering retail locations for expansions or relocations of their businesses. These include general physicians, physician specialists, urgent care clinics, physical therapy groups, plastic surgery and cosmetic surgery centers, general and specialty dental clinics, chiropractors, and both vision and vision surgery services.
Why would these medical service providers choose a retail shopping center over an office building or a medical clinic facility? Specifically, providers want the very qualities and features that make a shopping center what it is. A retail shopping center’s most attractive amenities typically include ease of access, strong location, convenient parking often at tenants’ doors, excellent signage opportunities and a strong presence in the center with its own storefront signage. Oftentimes a pad location, like a bank or a fast-food restaurant, is perfectly suited for a new urgent care clinic.
The above qualities aside, retail centers drive significant customer traffic gaining the medical tenant exposure beyond its patient base. Neighborhood centers anchored by grocery stores have consistent foot traffic, which in turn translates to repeatable customers and thus potential new patients for a medical tenant.
Additionally, medical tenants are a good fit for retail centers. With many typical retailers adapting to the impact of online shopping and developing smaller store formats, landlords are seeking new tenant types to fill available spaces. Service businesses, including all variety of medical services, are a more stable tenant not subject to Internet dilution. In fact, the medical tenant tends to strengthen the tenant mix at many shopping centers. Medical tenants have a heavy build-out requirement, but they are also able and willing to pay competitive lease rates in order to achieve their goals and take advantage of a retail center’s benefits.
Doug Jones specializes in the leasing and sales of office properties at NAI Norris, Beggs & Simpson, a real estate brokerage and asset/property management company. Contact him at 503-273-0332 or firstname.lastname@example.org.
Michael Hale specializes in the leasing and sales of industrial properties at NAI Norris, Beggs & Simpson. Contact him at 503-223-7181 or email@example.com.
Pam Lindloff specializes in the leasing and sales of retail properties at NAI Norris, Beggs & Simpson. Contact her at 360-852-9622 or firstname.lastname@example.org.
Open 4 Business Production, LLC, a digital production company, has leased 11,000 sf in the competitive Northwest market. NAI Norris, Beggs & Simpson Real Estate Broker Michael Hale represented the tenant in their lease at 2350 NW York Street.
An industrial park may have been the easier, more preferable location considering the tenant’s amount of space and parking needs, but the market’s competitive sub 5 percent vacancy rate presented limited options, and Hale was tasked to find the best space within the city limits.
“It was a creative but challenging deal,” Hale said. “Not many properties would have considered it, but the lessor, Trial Guides, LLC, was the perfect match for such a strong tenant. It’s a great opportunity and an excellent location.”
Open 4 Business, LLC began their 6-month lease in December 2013.
Eleven Norris, Beggs & Simpson Companies employees were awarded advanced titles at the company’s annual Awards Banquet February 1.
In the NAI Norris, Beggs & Simpson brokerage team, Robert Black, a Portland multifamily investment sales broker, and MaryKay West, a Portland investment broker, were awarded the title of Senior Vice President.
In NAI NBS’ property management department, Monique Clouser was named Senior Vice President, and Beverly Chestnut Foster and Mary Mitch were named Vice President. Valorie Cochran earned Associate Vice President. Nutan Engels was awarded Senior Property Manager. Leslie Murphy and Heather Selby both received the title of Senior Property Management Assistant.
In the administrative division, Sara Litton earned the title of Assistant Controller.
Robert Black specializes in apartment investment and land sales. A member of the NAI Norris, Beggs & Simpson Capital Asset Group since 1999, he has more than 16 years of experience in the commercial real estate market.
MaryKay West has been with NAI Norris, Beggs & Simpson since 1991. During her time with the company, she has managed property for large institutional owners, supervised our commercial Loan Administration and Market Research Departments, and worked on new business development and property management takeovers.
Monique Clouser specializes in office and retail properties and currently manages the properties One & Three Centerpointe. She adds value to her assets by implementing operational goals to achieve energy efficient strategies that minimize operational costs and reduce environmental impacts.
Beverly Chesnut Foster joined NAI Norris, Beggs & Simpson in 2008 with more than 20 years of experience in commercial real estate, including office, retail and industrial properties, and development strategies.
Mary Mitch joined NAI Norris, Beggs & Simpson in 1984. As well as being a Certified Green Broker, she currently manages a lease administration portfolio for Integra Telecom, Inc.
Valorie Cochran has a 20-year + career in commercial and residential property management and joined NAI Norris, Beggs & Simpson’s property management team in 2013. She presently manages AmberGlen Corporate Center.
Nutan Engels joined NAI Norris, Beggs & Simpson in 2007 with over seven years of experience in the property management field. At this time, she oversees retail, office and industrial properties, as well as 3 condominium units.
Leslie Murphy started her career with Norris, Beggs & Simpson in 1996, and she assists in the day-to-day operations of retail, office and industrial commercial properties. She most notably assists in the 249,825 sf industrial property Park I-84.
Heather Selby joined Norris, Beggs & Simpson in 2010. She currently provides support to multiple property managers by assisting in the daily operational and customer service needs of several office and industrial properties.
Sara Litton was welcomed at Norris, Beggs & Simpson in 2008. As Assistant Controller she provides support with accounting functions, such as reconciling accounts and auditing Property Management fees.
Mick Stapleton began his career with NBS Financial Services in 2006, and works closely with our highly qualified loan origination staff in attaining the borrowing and investment needs of our clients, which include major life companies, conduits, REITs and pension funds.