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.
Norris, Beggs & Simpson Companies awarded advanced titles at the company’s annual Awards Banquet February 1, and named Sierk Braam, a land and investment sales broker in the Vancouver office, Senior Real Estate Broker.
Sierk Braam began his career with NAI Norris, Beggs & Simpson in 2009 and focuses on the sale of financially distressed commercial real estate, bank owned real estate and investment sales.
NBS Financial Services awarded advanced titles at the company’s annual Awards Banquet February 1. Jeff Henderson was named Associate Vice President and Zack Goodwin was named Associate Finance Officer.
Jeff Henderson joined NBS Financial Services in 2009. He brings a strong commercial real estate background to NBS Financial’s growing Seattle office, where he originates loans on all types ofcommercial properties around the Pacific Northwest.
Zack Goodwin joined NBS Financial Services in 2013. He helps satisfy the capital needs of our clients through exclusive relationships with life insurance companies, conduits and various other lenders.
Norris, Beggs & Simpson Companies announced its top producers of 2013 at the commercial real estate firm’s annual awards banquet February 1.
Rounding out Norris, Beggs & Simpson’s Top 5 Producers, multifamily investment sales broker Robert Black was named #1 in the brokerage division for the second consecutive year. Office brokers and siblings Jennifer Medak and John Medak tied for #2. Downtown office broker Sean Turley came in 4th, followed by industrial broker Denis O’Neill.
Becky Yarger, who manages an impressive portfolio of several downtown office buildings, was NAI NBS’ Property Manager of the Year, and Ken Griggs was NBS Financial Services’ Finance Officer of the Year. Ken Griggs was also the top producer in the entire company.
The event also highlighted production across the company in 2013. NAI Norris, Beggs & Simpson’s brokers completed 762 deals worth over $276.7 million, sold 920,000 sf and 344 acres, and leased 3 million sf. Its property managers managed 10.5 million sf, 147 acres and 850 residential units all valued at $1.5 billion. NBS Financial Services originated 60 loans worth over $447 million, and the loan servicing department serviced approximately 400 loans valued at $1.8 billion.
Ode to Roses, a two-story 5,780 sf mixed-use building designed by Kevin Cavanaugh, was sold for $1,267,697. It was purchased by an urban commercial real estate owner from San Francisco, 4440 NE Fremont, LLC. NAI Norris, Beggs & Simpson Vice President Robert Black represented the seller.
As one of the first buildings completed by pioneer architect Kevin Cavenaugh, Ode to Roses is both innovative and unique. Named after the former site of Rose’s Famous 24 Flavors ice cream shop, the landmark building remains a stimulant to the development of the pedestrian-oriented Northeast neighborhood.
“Ode to Roses possesses the spirit of the neighborhood,” Robert Black said. “The buyer sought commercial real estate with deep roots to the community and unique personality, so Ode to Roses was an obvious choice. With over a decade of positive influence.”
With Grand Central Bakery anchoring the ground floor and ten pod executive suites for creative upstairs, Ode to Roses will continue to influence and add to the fabric of the neighborhood.
As featured in The Portland Business Journal, Texas-based Nation Tours, specializing in Segway city tours, has finally arrived to Portland, having leased 606 sf at the Governor Building. NAI Norris, Beggs & Simpson Real Estate Broker Geri Varvel represented the lessee, Oregon Nation Tours, Inc.
Having been successful in Texas, Nation Tours eyed Portland’s ever-growing tourism industry. According to Travel Portland, the Portland-metro area welcomed 8.1 million visitors in 2012 generating $4.1 billion in direct spending. And that market continues to grow with Portland’s popularity as one of the nation’s top destinations.
“Segway tours fit the city’s personality,” Geri Varvel said. “It’s a great opportunity and the Governor Building was the perfect spot for Oregon Nation Tours’ debut in Portland. Both Portland natives and tourists will truly enjoy these unique and fun tours along the Willamette River and throughout Downtown.”
Oregon Nation Tours will open in March 2014, offering 5 Portland Segway tours daily and bike tours on weekends.
There is a lot of change happening in Portland. It’s obvious that Portland’s economic forecast has trended from typical, expected “gray skies” to “sunny with a few showers”. We’re by no means basking in the glow of a booming economy, but our progress as a city shows. According to the Value of Jobs Coalition, Portland has regained 65,900 jobs of the 72,400 jobs lost between August 2008 and August 2009, and Portland ranks first among three peer metros (Sacramento, St. Louis, and Cincinnati) in terms of employment gained and median household income growth. These aren’t just feel-good facts, but substantial indicators of steady recovery. And this progress has significant impact within the commercial real estate office market, especially when Norris, Beggs & Simpson’s third quarter office market report show Portland to have an overall office vacancy rate of 12.5 percent, the lowest level since the peak of activity in 2008.
Are we trending toward a landlord’s market?
Due to the low office vacancy and job recovery, we are starting to see a transition from a tenant to landlord’s market. Before the Great Recession, there was the Field of Dreams attitude that, ‘if we build it, they will come.” The Sunset Corridor is a testament to this type of uninhibited assurance in the market and was overbuilt because of it. But due to 2008’s economic dropout, the market now restrains from such flagrant displays of confidence. The market’s natural and expected caution is also true of Portland’s current transition toward a landlord’s market because we’re not seeing the traditional shift indicator of rental rate growth. In fact, despite changeable economic climates, Portland’s rates generally don’t fluctuate over time, and consequently cannot be used as reliable market shift indicators.
Rental rates just don’t fluctuate in PDX
Unlike other burgeoning metropolitans like Seattle or Sacramento, Portland’s office rental rates remain consistent and invariable. I recently came across an Umpqua bank flier dating from the mid-1990s advertising the same rental rates as today at $26/psf, full service gross. Furthermore, I even have a client from Beaverton who vacated the Griffith building in 2005, only to reoccupy the same building in 2013 at approximately the same rate. During the 8 years of my client’s vacancy, there was only a quarter difference between the 2005 rate of $16.25/psf, full service gross compared to the 2013 rate of $16.50/psf, full service gross. Whereas other markets may show a spike in rental rates during a landlord’s market, Portland’s rental rates cannot be trusted to show the market’s gradual transition.
Evidence of Portland’s trend toward a landlord’s market is therefore not an increase in rental rates, but rather an apparent decrease in tenant concessions. Though there are still offers of free rent, there are simultaneous decreases in moving and tenant improvement allowances. At the bottom of the market, landlords were offering $.50-$1.00/psf in moving allowances, which is seldom seen today. Such a tightened market only drives the submarket inventory’s competition, which is unmistakably happening to the Sunset Corridor, and for the first time in several years we are seeing multiple offers on the same space.
Sunset Corridor leads revival
The Sunset Corridor epitomized the Field of Dreams attitude in anticipation for a booming high-tech market, but like so many other projects pre-Great Recession, was left to the wayside in its aftermath. During this time, the Sunset Corridor’s overall vacancy peaked at 26.9 percent in 2011, and then steadily trended lower. But it wasn’t until 2013 that the Sunset Corridor’s vacancy rate experienced a noticeable drop between 18.7 percent in the fourth quarter of 2012 and 12.8 percent in the first quarter of 2013. This difference kicked off the Sunset Corridor’s revival, with vacancy continuing to drop to 10.75 percent at the close of the third quarter of 2013.
The sharp contrast between 2011 and 2013 speaks to the evident market shift and the rise in demand for spaces like the Sunset Corridor. The biggest reason is the demand for greater pockets of space, and the Sunset Corridor offers just that with large contiguous floors. Such big spaces are otherwise difficult to come by or pose creative challenges when there is little to no new construction developments.
Rental rates tend to go up when there is no construction to compete with and supply is constant, but as of now, the Sunset Corridor is meeting the high demand with fierce competition. The market is still too raw for any new construction, so buildings that can accommodate this need are being sucked up. For example, I recently had a client looking for 25-30,000 sf in the Sunset Corridor, and we only had three to four options to consider.
Although tenants may not necessarily welcome the shift in the market, Portland’s move away from a tenant’s market is indicative of an overall improving economy. The Sunset Corridor’s spike in activity is proof to this trend, and with unemployment rates dropping to a five-year low, Portland’s office market stands to gain momentum as a landlord’s market in 2014.
Robert Greenfield specializes in the leasing and sales of office properties throughout the Portland metropolitan area.at NAI Norris, Beggs & Simpson, a real estate brokerage and asset/property management company. Contact him at 503-273 0323 or email@example.com.
Congratulations to NAI Norris, Beggs & Simpson for earning the top rank as deemed by Oregon Business’s 2014 Powerbook issue!
NBS Financial Services Senior Vice President Wally Harding and Senior Associate Finance Officer Mick Stapleton have arranged $8,234,000 in refinancing for The Retreat at Union Square, a 126 unit luxury residential property in Boise, Idaho. Financing was placed through the Fannie Mac DUS program for long-time Boise developer, Union Retreat, LLC.
The refinance paid off the construction lender to provide long-term financing with a favorable interest rate. Harding and Stapleton secured the refinance of the construction loan with interest-only for the first 5 years over a 10-year term and a 30-year amortization.
The Retreat at Union Square is a new, exceptionally built Class A residential property offering spacious 1-3 bedroom homes equipped with a community center, pool and spa. The complex is conveniently located in Southwest Boise with quick accessibility to downtown, job centers and shopping.