NAI Norris, Beggs and Simpson

NAI NBS Earns CoStar Power Broker Awards

2011-05-10T11:48:00.000-07:00

NAI Norris, Beggs & Simpson made a strong showing in the 2010 CoStar Power Broker Awards. For the sixth consecutive year, NAI NBS was named a top leasing and sales firm in the Portland metropolitan market.

A number of NAI NBS brokers earned individual awards:
Top Office Leasing Brokers: Chris Johnson and MaryKay West
Top Retail Leasing Brokers: J.J. Unger and Pam Lindloff

Visit the Power Broker website for the entire list.

First Quarter Reports Show Some Improvement for Portland CRE

2011-04-18T14:01:00.000-07:00

NAI Norris, Beggs & Simpson has released its First Quarter 2011 quarterly reports for office, industrial, retail and multifamily commercial real estate, as well as its economic report.

Central City office vacancy rose slightly to 12.41 percent during First Quarter. The biggest office news downtown was the $129 million sale of Shorenstein’s First & Main to American Assets Trust. Suburban office vacancy also rose slightly, to 24.13 percent.

Industrial vacancy rose nearly a percentage point to 15.94 percent, with 529,020 sf newly available. Vacancy especially increased in North/Northeast, up to 18.94 percent, as a number of tenants vacated large spaces. But positive signs included Subaru’s build-to-suit lease at Rivergate Corporate Center III.

Retail vacancy remained fairly stable at 6.3 percent. Vancouver is seeing considerable retail activity, including a new Cinetopia under construction at Westfield Vancouver Mall and the recently-announced New Seasons in Fisher’s Landing, opening this October.

The multifamily market has seen recovery more quickly than other property types. Apartment vacancy was 2.74 percent during First Quarter, down from a peak of 5.43 percent during Fourth Quarter 2009. The multifamily investment market remains a bit sluggish, though the institutional market is more robust. The construction pipeline has also started to heat up.

Happy Anniversary, NAI Norris, Beggs & Simpson!

2011-04-01T10:54:00.000-07:00

Today marks the 79th anniversary of NAI Norris, Beggs & Simpson's founding. The company was founded April 1, 1932, in the midst of the Great Depression, in Portland, Oregon. Starting out primarily as property managers, the company has grown into the full service operation it is today. For our 75th anniversary in 2007, we compiled some company history, which can be found here.

NAI NBS #1 Top CRE Company in Portland, Wins CAR Awards

2011-03-08T14:23:00.000-08:00

Last week was a good one for NAI Norris, Beggs & Simpson. The Portland Business Journal's list of Top Commercial Real Estate Companies in Portland came out, and NAI NBS was ranked #1! The list is ranked by number of current metro licensed agents, and we have 55. The full list is only available for subscribers, but you can see the Top 10 here.

The Commercial Association of Realtors (CAR) of Oregon/SW Washington also held its awards ceremony last Thursday. Many of our brokers and staff members are involved with CAR. Chris Johnson was named Office Broker of the Year, MaryKay West was named Co-Humanitarian of the Year, and Jeff Borlaug was recognized as Member of the Year. We also had two runners-up: Andrew Rosengarten for Rookie of the Year, and J.J. Unger for Retail Broker of the Year.

NAI NBS Brokers $7.1M Sale of Tanasbourne Retail Property

2011-02-23T15:55:00.000-08:00

StanCorp Real Estate LLC has sold Tanasbourne Lot 19 – Retail, a 7-acre property in Hillsboro with three retail buildings totaling 21,154 sf, to Atlas Investments for $7.1 million. Tenants are Stanford’s Restaurant & Bar, Red Robin and US Bank. NAI Norris, Beggs & Simpson Executive Vice President Chris Johnson and Vice President MaryKay West represented the seller.

The buyer, a local investment company, immediately recognized the quality of the property and its investment potential, leading the property to be under contract in just two weeks, and to close in a relatively short period of time.

“It’s nice to see strong interest in triple-net leased investments,” Johnson said. “This is a good indicator that investment activity will be improving in 2011.”

The property’s location, at 2550-2770 NW 188th Ave., was key. It has outstanding visibility and lies in the heart of Tanasbourne, which has seen considerable commercial and residential growth in recent years. It is close to sites of significant economic development, including the Intel campus, the new Kaiser Westside Medical Center, and the campuses of companies like Genentech and SolarWorld.

The tenants, all well-established and solid performers, were also draws. Though the recession was challenging for restaurants, both Stanford’s and Red Robin saw significantly better sales in 2010 than in 2009.

Two NAI NBS Brokers Recognized at NAI Global 2011 Convention

2011-02-18T10:52:00.000-08:00

Two NAI Norris, Beggs & Simpson employees were recognized at NAI Global’s 2011 Convention in Las Vegas last week.

Executive Vice President Roger Qualman, who manages NAI NBS’ Vancouver, Washington, office and oversees the company’s industrial sales team, received the Chairman’s Award. It recognizes the NAI Business Director who best exemplifies the “right stuff” as it relates to the effective management of an NAI office, including leadership, business generation, service delivery, participation in enterprise initiatives and integration of NAI tools and resources throughout the firm. Qualman is pictured at right accepting the award from NAI Global President Jeff Finn.

Real Estate Broker Ross Connor, who specializes in industrial properties, was named to the NAI Global Elite, a group comprised of the organization’s top performers and top producers. He qualified as a Top Performer at the Elite level based on 2010 production.

Portland Investment Market Seeing Signs of Life

2011-02-17T11:32:00.000-08:00

MaryKay West, who specializes in investment sales in NAI NBS' Capital Asset Group (CAG), has a column in today's Daily Journal of Commerce. West says that though the investment market certainly hasn't completely recovered yet, 2010 was a big improvement over 2009, and momentum is building in the Portland metro area.

Here's a brief excerpt:

In 2010 we saw a total of $754.1 million in transactions ($500,000 and larger) in the tri-county area. This number, although only 24 percent of the total volume of 2007, is still encouraging because it represents a 19 percent increase over 2009. Last year also saw a rise in the number of transactions greater than $10 million, and all product types were represented in this category - another promising sign.

Rent trends seem to have reversed course - rates are leveling off and perhaps even rising. Vacancy rates are dropping slightly and absorption is rising slowly - however, this is as much a function of no new construction as it is of few new companies leasing up more space. Cap rates are dropping again, but not precipitously, and most of the movement is for trophy properties. Interest rates are still very attractive.

All in all, it appears the market correction has started, but it will take a while to turn the ship - which is actually a good thing. Significant volatility tends to breed uncertainty and uncertainty tamps down real estate investment activity.

The whole article can be accessed here.

Downtown Office Broker Turley is NAI NBS' Number One Top Producer of 2010

2011-01-24T15:52:00.000-08:00

NAI Norris, Beggs & Simpson's Number One Top Producer of 2010 is Sean Turley. Turley, a specialist in downtown office leasing and sales, has been with NAI NBS since 1999. He completed 57 transactions valued at nearly $40 million during 2010. He helped sell the historic Sherlock Building for $6.4 million, and helped sign 46,000 sf in leases at the Bank of America Financial Center, where he represents the landlord.

Jennifer Medak and John Medak Tie For Number Two Top Producer of 2010

2011-01-24T15:44:00.000-08:00

Office brokers and siblings John Medak and Jennifer Medak, who have both been with NAI NBS for about 10 years, tied for the Number Two spot for the second year in a row. They completed 64 deals valued at more than $51 billion last year, primarily in the suburban markets. Their landlord representation during 2010 included leasing 24,000 sf to State Farm Auto Insurance at Fanno Creek Building B, and 17,400 sf to CNA Insurance at Pacific Parkway Center.

Merino Takes Number Four Top Producer of 2010 Spot

2011-01-24T15:15:00.000-08:00

Industrial broker Michael Merino, who has achieved the respected CCIM and SIOR designations, is NAI NBS' Number Four Top Producer of 2010. A frequent and consistent member of this list, he is actively involved in conducting business through the NAI Global Network. Some of his highlights of 2010 were representing Precision Elite Gymnastics in a 34,000 sf lease in Clackamas, and serving as a landlord rep in XO Communications’ 31,000 sf lease at Cascade Business Center.

Investment Broker West is Number Five Top Producer of 2010

2011-01-24T15:09:00.000-08:00

Investment broker MaryKay West, CCIM, was NAI NBS' Number Five Top Producer of 2010. She and partner Chris Johnson completed a number of significant deals last year, including leasing the entire 340,000 sf office portion of downtown’s First & Main. She also helped represent Alpha Broadcasting in its 31,000 sf lease at Pacwest Center. She is an accomplished writer and serves as Chair of the Independent Publishing Resource Center Board of Directors.

Chesnut Foster Honored as NAI NBS Property Manager of the Year

2011-01-24T14:02:00.000-08:00

NAI Norris, Beggs & Simpson named Beverly Chesnut Foster Property Manager of the Year at the company's annual awards banquet Jan. 22.

Chesnut Foster is a Certified Property Manager (CPM) who joined the company in 2008. She currently manages three properties with office and retail components totaling nearly 300,000 sf. One client deemed her the “property manager of the century,” and said she ably deals with challenges and goes above and beyond to satisfy tenants and clients. Prior to coming to NAI NBS, Chesnut Foster had a diverse career that included managing property for the Port of Portland and lecturing on real estate and management in central Europe.

Some Positive Signs for PDX Commercial Real Estate During Fourth Quarter

2011-01-14T15:11:00.000-08:00

NAI Norris, Beggs & Simpson has released its Fourth Quarter 2010 quarterly reports for office, industrial, retail and multifamily commercial real estate, as well as its economic report.

Office vacancy in Central City decreased to 11.78%, with a few significant leases. Suburban office vacancy fell slightly to 23.88%, with 121,056 sf absorbed. One of the larger leases of the quarter was ACS taking 30,656 sf at Triangle Pointe for a new call center. Vancouver office vacancy rose slightly to 18.7%.

Industrial vacancy fell slightly to 15.01%, with 108,375 sf absorbed. As one recent study showed, the industrial sector is a bright spot in Oregon’s economy, and the Port of Vancouver has recently seen heightened activity with BHP Billiton’s 60-acre lease.

Retail vacancy was stable at 6.4%, with 81,081 sf absorbed. The area’s first H&M opened in November at Pioneer Place, and H&M also leased nearly 20,000 sf at Washington Square. Ross Dress for Less and Dick’s Sporting Goods also signed significant leases during Fourth Quarter.

The Fourth Quarter ended with a flurry of multifamily investment sales. The $79 million sale of Ladd Tower and $70 million sale of the Palladia Apartments were just two of the significant sales of the quarter. Apartment vacancy also fell to 3.09%.

Full reports can be accessed here.

NAI Global Releases Global Market Reports

2011-01-05T13:15:00.000-08:00

NAI Global has published its 25th annual Global Market Report, containing information on commercial property in more than 200 markets around the world, including Portland.

2010 was a tough year for the commercial real estate market, but recovery is starting to occur, and there's some room for optimism.

“Although 2010 was another very challenging year for the industry, we began to see clear signs that the global economy and commercial real estate markets had stabilized and were beginning to improve with a noticeable pickup in transaction volume around the world,” said Jeffrey M. Finn, President & CEO of NAI Global. “Companies around the globe are taking advantage of the current market, extending or renegotiating leases, securing investment properties, disposing of underperforming assets and finalizing plans for growth in the next 24 months. We expect a much more active market for buyers, sellers and occupiers as conditions continue to improve.”

The full report can be found here, and the snapshot of Portland is on page 124. It discusses Portland's office, industrial, retail and multifamily markets.

NAI NBS an Oregon Most Admired Company for Sixth Consecutive Year

2010-12-10T10:58:00.000-08:00

For the sixth consecutive year, NAI Norris, Beggs & Simpson was recognized as one of Oregon's Most Admired Companies, based on a survey of Oregon CEOs conducted by the Portland Business Journal. NAI NBS ranked third out of the top ten Most Admired Commercial Real Estate Companies. President J. Clayton Hering accepted the award at a luncheon held at the downtown Hilton yesterday. About 1,800 CEOs and top-level managers in Oregon and Southwest Washington were surveyed to determine the Most Admired Companies.

Hering Featured in Oregon Business

2010-12-03T10:00:00.000-08:00

Norris, Beggs & Simpson Companies President J. Clayton Hering was profiled in the December issue of Oregon Business magazine. Click here to read the article. Clayton has been with NBS since 1972, and became president of the company in 1993. He is very active in civic organizations and the arts, serving on the board of the Oregon Symphony and on the Young Audiences Advisory Board, among others.

NAI NBS Property Managers Win Big at Oregon Chapter IREM Awards

2010-11-10T10:10:00.000-08:00

NAI Norris, Beggs & Simpson had a great showing at the Institute of Real Estate Management (IREM) Oregon -Columbia River Chapter Annual Awards Ceremony last week. NAI NBS was named the Accredited Management Organization (AMO) Firm of the Year. Kimberly Fuhrer, who works out of our Vancouver office and is IREM's Vice President, Member Services for 2011, was named Certified Property Manager (CPM) of the Year. Traci McCauley, IREM's Vice President of Education for 2011, was honored for Outstanding Member Participation of the Year. Debra McCracken, another Vancouver property manager and IREM's 2011 President, was recognized with the President’s Award.

A number of other NAI NBS property managers will also hold leadership roles in IREM in 2011:

Nutan Engels - Community Service Committee Chair
Monique Clouser - Income/Expense Committee Chair
Christina DuCoté - Legislative Committee Chair
Stephanie MacPherson - Newsletter Committee Chair

Congratulations to all! NAI NBS has a strong asset/property management division. Our current portfolio is about 7 million square feet, 345 residential units and 117 acres of land, around the Portland metropolitan area and Vancouver, Wash. NBS Multifamily Management, a division of Norris, Beggs & Simpson Cos., manages the residential portion.

Gresham's Burnside Commons Lands First New Tenant Since Change in Ownership

2010-11-02T08:03:00.000-07:00

Gresham’s Burnside Commons has secured its first new tenant since FMK Properties – Burnside, LLC purchased the property in July.

Gresham Therapeutic Massage Center leased 3,899 sf, and the lease began Oct. 15. NAI Norris, Beggs & Simpson Senior Vice President Jack McConnell represented the landlord, and Bill Butler of Web Properties, Inc. served as a consultant on the lease.

Gresham Therapeutic Massage Center, a locally-owned business, found precisely what it was seeking in Burnside Commons: a larger space with good street exposure that had an improved interior and was ready to occupy. The business was previously located in a space on Burnside about half a mile from Burnside Commons.

Since health care is one area of the economy that is growing, brokers are seeing increased activity from health care tenants, McConnell said.

Burnside Commons is a 38,053 square foot, three-building retail property built in 2001 and 2006 at the intersection of Burnside and Eastman Parkway. Burnside Commons’ owners are still working on lease-up of the property, which has considerable vacancies.

Third Quarter Market Reports for PDX CRE: Signs of Improvement in Multifamily, Central City Office Markets

2010-10-13T15:23:00.000-07:00

This week we released our Third Quarter 2010 quarterly reports for the Portland metro area. There's no doubt that we're still seeing the impact of the recession, but there was certainly some good news, too.

Office vacancy in Central City decreased to 12.13% with 282,442 sf absorbed, thanks to large leases at First & Main and the Meier & Frank Depot Building. Suburban vacancy remained stable at 24.06% with about 4,000 sf absorbed, the first positive absorption in the suburban office market since Third Quarter 2008.

Industrial vacancy was stable at 15.22%, with about 10,000 sf absorbed. A few large transactions occurred, including PFX Pet Supply leasing 70,000 sf at Columbia Corporate Park I in North/Northeast.

Retail vacancy decreased to 6.5%, and a few projects broke ground, including the 215,000 sf Progress Ridge Town Square between Tigard and Beaverton. Retail sales were up in August and September with the help of a strong back to school shopping season.

Multifamily was a bright spot during Third Quarter. Vacancy fell to 3.65%, the lowest it has been since Second Quarter 2008. The multifamily investment market also showed increased activity, especially for properties developed as condominiums and converted to apartments.

A PDF of all the reports can be found here.

NAI NBS Welcomes Ionescu to Office Brokerage Team

2010-09-29T10:54:00.000-07:00

Alexandra Ionescu has joined NAI Norris, Beggs & Simpson as a Real Estate Broker specializing in office properties. She will initially focus on the Sunset Corridor area, specializing in tenant and landlord advisory and working with local and regional clients.

Prior to joining NAI NBS, Ionescu was an Assistant Relationship Manager in the Commercial Real Estate Division of U.S. Bank in Portland. There, she performed financial and operational analysis of cash flow and leverage, and assessed client relationship risk.

Ionescu holds a Bachelor of Arts in business administration, with a dual specialization in commercial real estate finance and financial management, from Portland State University. She is a licensed real estate broker in Oregon.

First Ever Dex One Solution Center Opens in Vancouver, Wash.

2010-09-21T09:50:00.000-07:00

Dex One has leased 6,508 square feet of retail space at Columbia Tech Center, Building 601, for the company’s new Dex One Solution Center. NAI NBS' Tamara Fuller represented the lessee.

The new location serves as the first Dex One Solutions Center in the country. The center, which combines a local Dex One office with a unique storefront presence, is designed to help local businesses and consumers interact directly with Dex One’s marketing consultants. In addition to on-site consultation, the storefront features kiosks and interactive displays to help visitors learn about Dex One’s online, print, voice-enabled and mobile solutions.

“Columbia Tech Center provides not only a prime location, but also ample space and amenities that will help Dex One’s consultants better serve Vancouver’s local business owners and residents,” Fuller said.

Dex One unveiled the new facility to the public on Sept. 20 with a Grand Opening celebration featuring live music, activities, food and a special appearance by “The Dex Guy,” star of Dex One’s TV commercials.

NAI Global Partners With AuctionPoint

2010-09-17T14:40:00.000-07:00

Earlier this summer, NAI Global announced that it has entered into an agreement with AuctionPoint to provide NAI agents with access to an online auction tool that empowers brokers to auction commercial properties online, under their name and brand. AuctionPoint realizes that the local broker is the key player in bringing together buyers and sellers, and is the first online auction platform built specifically for brokers.

AuctionPoint’s technology gives brokers the ability to customize auctions to handle a multitude of selling scenarios, from the most basic to the most complex. They also have the ability to set a date-certain window of time for interested parties to bid on the property, online and through AuctionPoint.

On NAI Global's blog today, Senior Vice President Patricia Faulkner interviews AuctionPoint CEO Joe Tang about AuctionPoint and current market conditions.

Good News on Portland's Retail Development Front

2010-09-01T14:47:00.000-07:00

It's been a slow couple of years for new development in Portland, so the fact that two new retail projects recently broke ground is great news.

In late July, Gramor Development broke ground on Progress Ridge, a $60 million, 325,000 sf retail development in Beaverton-Tigard. Big Al's Family Bowling and Entertainment Center at Progress Ridge just opened in August, and construction on the rest of the center should be finished by fall 2011. Tenants include New Seasons Market, Cinetopia, Rivermark Credit Union, and more.

And last week, Gramor broke ground on Lacamas Crossing in Vancouver, which includes a 154,000 sf Costco and 27,000 sf of additional retail space for 15 businesses. About half of the non-Costco space is preleased, and the center should employ about 500 people. Costco should open in November, and the rest of the space in First Quarter 2011.

This is good news for the market, and hopefully our Third Quarter reports, which will be released the first or second week of October, will hold some more positive indicators.

Local Investor Pays $1.8M for Burnside Commons

2010-07-28T09:06:00.000-07:00

Owner Injecting New Life into Property, Space Attracting Tenant Interest During Lease-Up

FMK Properties – Burnside, LLC has purchased Gresham’s Burnside Commons, a 38,053 square foot, three-building retail property, for $1.8 million, and the property is already attracting new tenant interest.

Burnside Commons was built in 2001 and 2006, and offers spaces for lease of 1,200 square feet and larger, for a broad range of retail, office and service uses. The property is well-located in the heart of Gresham, at the intersection of Burnside and Eastman Parkway, with many large employers nearby, including Boeing, Boyds Coffee and ON Semiconductor.

NAI Norris, Beggs & Simpson Associate Vice President Jack Gallagher is handling leasing for the center, and is already working with three tenants interested in space at Burnside Commons. The buyer owns a number of investment properties around the area, has flexibility in establishing competitive lease terms, and is a hands-on owner who works closely with tenants.

Burnside Commons felt the impact of the recession, losing three tenants in the past four months, which led to 91 percent vacancy and foreclosure. But the new owners recognized Burnside Commons’ potential. The property has many positive features and will be a solid investment, according to NAI NBS Senior Vice President Jack McConnell, who represented the buyer.

Fuller Earns Certified Green Broker Designation

2010-07-21T10:58:00.000-07:00

NAI Norris, Beggs & Simpson Vice President Tamara Fuller has earned the Certified Green Broker designation, a certification granted within the commercial real estate industry to commercial brokers and affiliated professionals who have completed the Certified Green Broker course.

Washington state-based Commercial Brokers Association (CBA), in partnership with the Cascadia Green Building Council, developed Certified Green Broker to enable commercial brokers to identify sustainability issues related to real estate practices. Green Brokers provide appropriate counsel on the benefits of buying, building, leasing and managing green properties. The U.S. Green Building Council (USGBC) has approved Certified Green Broker through their Approved Education Provider Program.

The Certified Green Broker education program consists of ten three-hour online modules presented in an interactive format. The program offers 30 hours of real estate continuing education credit in Washington, Oregon and Idaho.

Fuller, an office broker in NAI NBS’ Vancouver office, joined NAI NBS in 2000 and has since had a hand in leasing more than a million sf of space, and selling about $18 million in total value of real estate. She was one of NAI NBS’ Top Ten Producers the past three years. Fuller is on the board of the Greater Vancouver Chamber of Commerce and is active in the Rotary Club of Greater Clark County and SW Washington Junior Achievement.

Multifamily Vacancy Down in Portland in Second Quarter

2010-07-15T10:19:00.000-07:00

Overview

Multifamily vacancy decreased to 4.11% during Second Quarter. Downtown Portland units continued to be leased up at a healthy rate, as vacancy for both new and seasoned units fell around 2 percentage points. Last quarter, this report began tracking a number of recent central city deliveries, and two new properties, the Matisse in South Waterfront (272 units) and the Broadstone Enso in the Pearl (152 units), will be added to the report when they are stabilized in 2011. Rental rates increased by $10 overall, or a cent per square foot, and as expected, downtown units led these increases.

Market Trends

It’s a good sign that vacancy is down and rents are increasing, and landlords are offering fewer concessions (except for new downtown properties), which indicates a healthier market. If new units continue to be absorbed at the current rate and the economy shows signs of solid recovery, we should see stabilization in 2011. But owners and managers remain guarded in their optimism, questioning whether recovery will occur without significant job creation, which we haven’t yet seen.

Despite the uptick in occupancy and some other positive indicators, the multifamily investment market remains sluggish. According to CoStar’s sales comparables, just two transactions over $3 million occurred during Second Quarter, one being the $38.75 million sale of the 188-unit Tupelo Alley in North Portland, which was a solid institutional sale. Investors remain uncertain about the region’s economic outlook, and worry that the Portland Metro Area doesn’t have one particular economic driver or growth engine, which may lead to a flat recovery. Companies are hunkered down, waiting to see significant improvement before investing, and the volatility on Wall Street in May didn’t help. Potential owners are also deterred by the increased costs of utilities and fees associated with owning and developing.

The deals being done in Portland and around the Pacific Northwest are at lower cap rates; this doesn’t necessarily indicate recovery, but of finding the ideal buyer on the transaction. Few aggressive buyers are currently active, though, and there’s little leverage to do deals. Financing remains challenging, with a limited number of lenders. Fannie Mae and Freddie Mac are the two most active lenders, and a number of other sources, like Chase and some life insurance companies, are becoming more active in pursuing deals.

The full report can be found here.

Retail Vacancy Flat in Second Quarter, Some Large Leases Signed

2010-07-15T10:14:00.000-07:00

Overview

Retail vacancy was unchanged at 8.0% during the Second Quarter, with negative 20,547 sf of absorption. Vacancy in Central City decreased nearly a percentage point to 10.9%. Vacancy in Southeast/East Clackamas increased more than a percentage point to 6.5%, with more than 20,000 sf of negative absorption each at Clackamas Town Center and Hilltop Mall. However, there was considerable leasing activity in big-box stores that are not tracked in our report. For instance, Salvation Army leased about 40,000 sf at the former Linens ‘n Things on SE 82nd, and Dick’s leased the nearly 50,000 sf former Joe’s Sports, Outdoors & More at Johnson Creek Crossing in Clackamas.

Vancouver vacancy rose by half a percentage point to 11.0%, with 46,688 sf of negative absorption. At Columbia Square – Vancouver, 20,000 sf became available. This is a portion of the former Joe’s Sports, Outdoor & More space, which is partially occupied by Chuck’s Produce (expected to open in August).

Noteworthy News

Closely watched indicators of the health of the retail market were mixed during the Second Quarter. Retail sales grew by a seasonally adjusted rate of 0.6% in April, but fell by 1.2% in May. The Conference Board’s Consumer Confidence Index also dropped by almost 10 points to 52.9 in June. Economists didn’t expect such a significant decrease, as the index had been rising since February.

Portland continues to attract large tenants of all kinds. In recent months, Ultimate Electronics, which was acquired by Hollywood Video founder and former CEO Mark Wattles, leased the 40,000 sf former Levitz Furniture building in Beaverton. Two new clothing stores are also in the works: H&M confirmed its Pioneer Place store will open this fall, and Saks Fifth Avenue Off Fifth will open at Bridgeport Village September 2. Nordstrom Rack also leased 48,344 sf at Cascade Plaza Shopping Center.

Signs of life were present in the Portland retail investment market during the Second Quarter. Retail Opportunity Investments, Corp., purchased Vancouver Market Center in Vancouver for $11.19 million, and is under contract to purchase a portfolio of four other centers in the Portland Metro Area from Gramor Development for about $90 million.

Though retail development has slowed, with our report tracking just under 30,000 sf of space under construction in the metro area, some activity and future planning is occurring. Big Al’s, the popular bowling center in Clark County, has a second 66,000 sf location under construction at Progress Ridge in Beaverton. It is expected to open in August, and developers hope the site will also be the future home of New Seasons and Cinetopia.

The full report can be found here.

Portland Industrial Vacancy Increases Slightly in Second Quarter

2010-07-14T14:08:00.000-07:00

Overview

Industrial vacancy rose less than a percentage point to 15.24% during Second Quarter, with negative 354,330 sf absorbed. Southeast saw a significant increase in vacancy, to 14.35%, as United Stationers Supply Co. vacated 40,608 sf at Commerce Park – McLoughlin and relocated to 195,510 sf at Rivergate Corporate Center III in the North/Northeast submarket. Vancouver vacancy also increased about four percentage points to 15.44%, and Columbia Business Center had more than 450,000 sf available. Significant leases of the quarter included Consolidated Molding & Millworks leasing 48,000 sf and Stanton Furniture leasing 92,960 sf at 115th Commerce Park in Southwest I-5.

Flex vacancy increased slightly to 18.23%, with negative 23,633 sf absorbed, down considerably from First Quarter’s negative 166,559 sf of absorption. Vacancy in the North/Northeast submarket fell about 5% to 12.09%, and Columbia Gorge Corporate Center saw considerable activity, with Multnomah County leasing 18,150 sf and Pac/West leasing 11,950 sf.

Market Trends

Greenlight Greater Portland, a privately funded economic development group, released a report in June suggesting that manufacturing will be a major factor in Portland’s economic recovery. It predicted that the manufacturing sector could grow by 14% in the next five years.

Renewable energy companies, particularly solar power companies, continue to be active players in the Portland industrial market. Solexant Corp. is expected to receive a $25 million state loan to build a factory in the metro area to develop ultra-thin-film solar cells. The plant would initially employ 100, and could rise to the same capacity as SolarWorld in Hillsboro, which will employ 1,000 by this fall when its expansion is completed. ReVolt Technology, a battery maker, also won a $5 million U.S. government grant that will help it build a Portland plant to develop a battery for plug-in vehicles.

In other major transactions, Farwest Steel will acquire more than 20 acres from the Port of Vancouver for about $5 million. The company will build a $20 to $30 million steel processing and distribution facility that will create 125 new jobs and employ about 200 overall.

The full report is available here.

Portland Office Vacancy Rose During Second Quarter

2010-07-13T08:25:00.000-07:00

Central City office vacancy increased to 12.73% during the Second Quarter, with negative 242,145 sf absorbed. About 40,000 sf of this negative absorption was from multiple tenants leaving the historic Stevens Building. The Church of Scientology of Portland purchased it in 2008 and planned to inhabit the whole building, but it was found to be unsuitable for the organization and is for sale. This quarter the Church of Scientology bought downtown’s historic Sherlock Building for $6.4 million to serve as its new home. In a highly-anticipated decision, the Portland Development Commission opted to remain at its current location in Old Town (but in 10,000 fewer sf), rather than move to the stalled Park Avenue West, its other primary option. It is uncertain when construction will restart at Park Avenue West, as the project lacks financing. Active tenants downtown include alternative energy groups, who seek environmentally friendly buildings. Many tenants are also seeking moderatelypriced Class A buildings with quality buildouts.

Suburban office vacancy rose about two percentage points to 23.92%, with negative absorption of 179,725 sf. This is the 7th consecutive quarter of negative absorption for the suburbs. Kruse Way saw the most significant increase in vacancy, from just under 23% last quarter to 29.36% during Second Quarter. Kruse Woods V had nearly 100,000 sf of negative absorption, as Northwest Evaluation Association vacated about 108,000 sf to move to the former Port of Portland building in Central City. However, Black & Veatch filled some of the space at Kruse Woods V, leasing about 25,000 sf. Vacancy in I-5 South rose significantly to 28.10%, but some large leases occurred, including State Farm’s lease of nearly 24,000 sf at Fanno Creek Building B. Brokers are seeing a flight to quality in the suburban submarkets, with healthy activity in nicer buildings.

Vancouver vacancy rose slightly to 18.55%, with negative 11,634 sf absorbed. The most significant deal was the $18.5 million sale of The Columbian Building to the City of Vancouver for its new city hall. The 118,000 sf building, previously listed at $41.5 million, was turned over to Bank of America early this year after the Columbian Publishing Co. filed for bankruptcy.

The full report is available here.

Unger Earns Certified Leasing Specialist (CLS) Designation

2010-07-06T10:03:00.000-07:00

NAI Norris, Beggs & Simpson Real Estate Broker J.J. Unger has earned the Certified Leasing Specialist (CLS) designation through the International Council of Shopping Centers (ICSC). He is the first NAI NBS broker to achieve the designation, which is a symbol of leadership and accomplishment and recognizes in-depth insight into every aspect of the shopping center industry.

Founded in 1994, the CLS program was designed to elevate professional standards, enhance individual performance and designate those who demonstrate knowledge essential to the practices of shopping center leasing. CLS designees must have at least four years of experience in shopping center leasing and pass a written exam; they must also maintain the designation through continuing education.

Unger joined NAI NBS in 2006 and has brokered a number of significant retail transactions in the Portland metro area, including John’s Incredible Pizza’s recent 46,212 sf lease at Washington Green Shopping Center.

Unger holds a BS in business administration from Colorado State University and is chair of the Portland chapter of ICSC’s Next Generation group for young professionals. He has completed Leasing I and Leasing II Institutes through ICSC’s John T. Riordan School for Professional Development to master the fundamentals of merchandising, economics and leasing strategies to effectively impact the income and retail productivity of a center and create value for the property.

Three Large Transactions in Portland Metro Area Announced This Week

2010-06-25T15:16:00.000-07:00

Some good news on the Portland metro area investment front this week, just as sunny summer weather finally hit.

Retail Opportunity Investments Corp, a New York real estate investor, is buying five Portland metro area shopping centers for about $90 million. It closed on Vancouver Market Center for $11.19 million, and is under contract for Cascade Summit Shopping Center, Heritage Market Center, Happy Valley Town Center, and Oregon City Point.

Phillips Edison & Co. also purchased Johnson Creek Shopping Center, a 106,709 sf center in Clackamas, for an undisclosed price.

And Behringer Harvard Holdings purchased the 188-unit Tupelo Alley Apartments on N. Mississippi in Portland for $38.75 million in the largest multifamily transaction so far this year.

NAI NBS Brokers Two Tigard Office Leases Totaling 40K SF

2010-06-10T11:24:00.000-07:00

NAI Norris, Beggs & Simpson brokers represented the landlords in two recent Tigard office leases totaling more than 40,000 sf.

State Farm Mutual Automobile Insurance leased 23,712 sf at the Fanno Creek Building B on Upper Boones Ferry Road. NAI NBS' Chris Johnson, John Medak and MaryKay West represented the landlord.

State Farm will relocate its administration and a small claims department from a nearby building in January. It leased the first and second floors, and was especially attracted to Fanno Creek because it was able to accommodate special needs, including a roll-up door on the ground floor.

Fanno Creek delivered in 2008 and has been vacant until this lease, which takes the building to 50 percent occupancy.

“Getting a quality tenant such as State Farm to relocate to this project, in this business environment, is sure to promote strong momentum for the remainder of the lease-up,” Johnson said.

CNA Insurance leased 17,443 sf at Pacific Parkway Center on SW 68th Parkway. NAI NBS' Jennifer Medak, John Medak and Andrew Rosengarten represented the landlord, PacTrust.

CNA’s lease was complex, as the brokers had to restructure four other leases within the building to accomodate CNA’s size needs. CNA also leases from PacTrust in Dallas, and the company was attracted to Pacific Parkway Center because of the building’s quality, aggressive rental structure, and attentive ownership and management.

The NAI NBS team has taken Pacific Parkway Center from about 58 percent leased a year ago to 82 percent leased today.

Investors Pays $1.7M for Box & One in SE Portland

2010-06-07T08:29:00.000-07:00

An investor has purchased the Box & One, two mixed-use buildings at SE 28th and Ankeny, for $1.7 million. NAI Norris, Beggs & Simpson's Robert Black represented the seller.

The transaction had a 7.2 percent cap rate and was a market-rate deal, Black said.

The 7,318 sf project has ground-floor retail and five loft-style apartments above. It is home to Crema Bakery & Cafe, on the corner of SE 28th and Ankeny, whose space features roll-up garage doors. The other ground-floor retail tenant is Coalition Brewing, which is expected to open this year.

The retail and residential spaces have been fully occupied since the buildings were constructed in 2002, and the apartments garner market-leading rental rates, Black said. Just a block off of Burnside in a neighborhood with lots of pedestrians, the project’s location promotes bicycle and bus use, and the buildings are energy efficient and sustainable.

The buyer was familiar with the Box & One because he had often visited Crema on trips to Portland, Black said, and the building’s strong occupancy, unique design and excellent location were appealing.

“Mixed-use, neighborhood-scale projects are popular investments today, especially in Portland,” Black said. “The Box & One has such strong fundamentals that it was a great opportunity for the buyer.”

Certified Green Broker Program Featured in the DJC

2010-05-26T10:34:00.000-07:00

Portland is known as one of the greenest cities in the country, and tenants and owners around the area are increasingly aware of the environmental benefits and savings that can come with green building. So how do they find commercial real estate brokers who are well versed and educated in all aspects of green leasing and sales?

Yesterday an article in the Daily Journal of Commerce examined the Certified Green Broker program, developed by the Commercial Brokers Association of Seattle and the Cascadia Green Building Council that was launched in 2008. Certified Green Brokers complete a 30-hour online course and must pass a comprehensive exam. Course topics include the business case for greening commercial buildings, energy use, green materials, and indoor environmental quality.

Two of NAI NBS' brokers, MaryKay West, an investment specialist, and Charlie Floberg, who specializes in office leasing and sales, recently achieved the Certified Green Broker designation.

While certifications like LEED can be useful for commercial real estate brokers, "it’s difficult to find continuing education offerings that are relevant to commercial practitioners," West said. The Certified Green Broker program is attractive because it is created specifically for brokers and the unique issues they face, like drawing up a green lease.

“Many office tenants, especially large office users, are interested in at least some types of green features,” Floberg said. “It’s important for brokers to know the benefits of green building and effectively communicate them to clients.”

DuCote Joins NAI NBS as Senior Property Manager

2010-05-25T10:41:00.000-07:00

Christina DuCoté, an experienced property manager who has managed a diverse portfolio of Class A commercial office buildings in the San Diego area, has joined NAI Norris, Beggs & Simpson as a Senior Property Manager.

Christina has more than 12 years of experience as a property manager. She was previously a Senior Property Manager with The Muller Company in San Diego, where she managed more than a million square feet at one time. She won The Office Building of the Year Award (TOBY) in 2008. Issued by the Buildings Owners and Managers Association (BOMA) of San Diego, the award recognizes quality in office buildings and rewards excellence in office building management.

Christina holds a bachelor of arts in economics from San Diego State University. She is a Real Property Administrator (RPA) and Certified Property Manager (CPM), both prestigious property management designations.

CAR Food/Funds Drive for Oregon Food Bank

2010-05-24T11:47:00.000-07:00

Last week, the Commercial Association of Realtors (CAR) of Oregon/SW Washington sponsored its second annual brokerage house food and fund drive competition benefiting the Oregon Food Bank. Together, the brokerage houses donated the equivalent of 14,543 pounds of food! CAR members also volunteered at the Oregon Food Bank on Friday, sorting and packing enough food for 376 meals.

And the winner of the competition was (drumroll please . . . ): NAI Norris, Beggs & Simpson! The money and food we donated equaled 124 boxes of food. We also had an internal competition to encourage donations, and our property managers especially stepped up and gave generously.

Though the competition was fun, the real goal of this project is to give as much as possible to the Oregon Food Bank, which is the hub of a network of 935 hunger-relief agencies throughout Oregon and Southwest Washington.

The Oregon Food Bank is a busy organization in good times, but the recession has been especially tough on Oregonians. From 2008-2009, distribution of emergency food boxes increased more than 14 percent from the previous year, to a historic high of 897,000.

The number of people per month who ate meals from an emergency food box jumped from an average of 200,000 per month in 2007-08 to 240,000 per month in 2008-09.

Please consider supporting the food bank in your area!

Is Commercial Real Estate the Next Storm?

2010-05-20T09:46:00.000-07:00

Has the commercial real estate market reached bottom? Or do we have yet to see the worst? This is the question Denis O'Neill, an NAI NBS broker who specializes in the sale of retail properties and land, addresses in a column in today's Daily Journal of Commerce.

Here's an excerpt:

Just when it appears we finally have some good economic news, many investors wonder if another financial storm is brewing. The residential market, if not at the bottom, appears close to it. Though the number of residential foreclosures and loans 90 days past due are still rising in 2010, and unemployment is holding steady, few experts see significant additional drops in residential values on the horizon.

So is commercial real estate the next shoe to drop?

Of the $3.4 trillion in commercial debt outstanding, a congressional oversight panel in February estimated that $1.4 trillion will reach maturity between now and 2014; up to 50 percent is held by local banks. Residential defaults led the way, particularly development loans. With plummeting values and no income stream, these loans were the first to be turned back to lenders. Banks’ problem loans are near-term and dwarf the $380 billion of commercial mortgage-backed securities debt that matures from 2015 to 2017. Furthermore, the vast majority of bank exposure to these securities is held by large banks. The big banks have demonstrated the ability to both raise equity and generate profits.

Click here for the full article.

New Report Says CRE Industry is Leveling Off

2010-05-12T10:07:00.000-07:00

A recent survey of senior real estate executives suggests that the commercial real estate market is leveling off, but uncertainty remains about how the recovery will play out.

The Real Estate Roundtable’s quarterly “Sentiment Survey” for Second Quarter 2010 was released this week, and provided some hope that commercial real estate has reached bottom. It also said more capital is available, but is limited by markets and property types.

Our friends at NAI Global posted this summary:

Of the 100+ senior real estate executives participating in the Q2 survey, 82% characterized market conditions today as better than a year ago (up from 73% in Q1), although only 17% said conditions are “much better.” The “Current Conditions” index hit a low point of 17 in Q4 2008 (during the near-collapse of U.S. financial markets); rose to 56 in the final months of 2009; and now stands at 74.

“Clearly, the sense of gloom that prevailed a year ago has eased, property values no longer seem to be in a freefall, and market participants are feeling more confident,” said Roundtable President and CEO Jeffrey DeBoer. “But, while sentiment is up, that’s not to say things are ‘good.’ Refinancing remains difficult for many and defaults are still rising, which means more pain ahead.”

In a sign that values may be leveling off, only 28% of those polled perceived asset prices today as lower than they were a year ago, compared with 57% in the previous quarter. Correspondingly, 46% said valuations today are better than a year ago, compared with only 22% in Q1. Looking ahead, 56% expect valuations to be “somewhat higher” a year from now and 35% expect them to remain “about the same,” compared to 42% and 35%, respectively, in the previous survey.

In another important metric, the Q2 survey shows “signs of life” in the debt and capital markets, although numerous respondents qualified their statements by saying improved availability is limited to certain parts of the market or types of properties (e.g., with positive cash flows). Of the 65% who said debt capital is more available today than one year ago, 27% characterized availability as “much better.” By contrast, only 19% of Q1 survey participants felt conditions were “much better” than a year earlier.

On the equity side, 76% said availability is better than one year ago (with 26% characterizing it as “much better”). However, the number of respondents predicting conditions will be better “one year from today” declined from 75% in Q1 to 66% in Q2, with a corresponding increase in the number who expect equity availability to remain “about the same.”

What do you think? Is your market seeing signs of life?

Overall Portland Multifamily Vacancy Down in First Quarter; NAI NBS Adds New Properties to Report

2010-05-03T11:31:00.000-07:00

Multifamily vacancy decreased more than half a percentage point to 4.82%. Downtown, however, saw a significant increase in vacancy. This increase resulted in the addition of new product; we added ten properties totaling more than 2,100 units to the report this quarter.

Our report tracks buildings of 100 units and above in the metro area; we consider smaller buildings in some submarkets if they lack many 100+ unit properties. This quarter we added the majority of downtown units that have come to market in the past 24 months, excluding three properties that are under construction or have very recently delivered: the Broadstone Enso, the Matisse, and Indigo 12 West.

With the additions to the report, downtown vacancy rose 5 percentage points to 10.15% and vacancy in new units came in at over 15%. The new units have impacted existing and historic downtown apartments by pushing down effective rents on existing units and creating a more competitive environment. Concessions like free rent and parking are thus being offered on new and seasoned units, and marketing has become considerably more aggressive. If the economy continues to recover, the downtown market could begin to stabilize by the end of 2010.

Market Trends
Apartment managers and investors report seeing a significant uptick in tenant traffic in the latter part of the quarter. This is a good sign but doesn’t necessarily indicate a recovery, which is contingent on two to three quarters of increased tenant traffic, a reduction in vacancy and increasing rental rates. The suburban markets have seen good absorption of new product, since there has definitely not been an oversupply, and submarkets like the Sunset Corridor, East County and the close-in eastside are truly tightening up.

The multifamily market is heavily dependent on the state of the local and national economy, and especially on the fragile job market. Considerable improvement in the job market should be reflected in quarter-over-quarter improvement in occupancy and rental rates. The bright spots locally are that companies like FedEx, Boeing, and Genentech continue to invest in the area. And despite challenges, Portland continues to grow. U-Haul pegged Portland’s growth rate at 10.16% (No. 3 in the country) for 2009, meaning the number of families renting U-Hauls to move to Portland was 10.16% higher than the number of families renting trucks to leave.

Portland Retail Market Vacancy Increases During First Quarter, But Some Positive Signs

2010-04-30T11:25:00.000-07:00

The Portland area’s overall retail vacancy rose about half a percentage point to 8.0%, with negative 293,920 sf of absorption. Central City saw the greatest increase of 1.5% for a total vacancy of 11.7%, the highest of any submarket. Nearly 15,000 sf is currently available at One Main Place, and Pioneer Place has about 50,000 sf available. Vacancy also rose nearly a percentage point in the Southeast/East Clackamas and Eastside submarkets. Vancouver vacancy stayed steady at 10.5%, though 59,573 sf was absorbed at Columbia Square. The 93,000 sf Bowyer Marketplace WinCo store, at the corner of NE 119th Street and 117th Avenue, delivered this quarter.

Construction remains slow, with 24,499 sf under construction throughout the Metro area. 17,000 sf of this is a freestanding building at 13233 SE McLoughlin in the Southeast/East Clackamas submarket.

Noteworthy News
The national retail market is showing signs of a slow recovery. Consumer spending rose for the fifth straight month in February, by 0.3%, according to the Commerce Department. And the International Council of Shopping Centers (ICSC) expects retailers to close fewer stores in 2010 than in 2009. But many retailers continue to face challenges, and Saks Fifth Avenue announced that it would close its two downtown Portland stores. It is rumored that Swedish retailer H&M will take over the 23,000 sf men’s store, and Saks will vacate the 60,000 sf main store by the end of July. Area officials are working to find a quality tenant for this space. In one bit of good news, Saks may open an Off Fifth store, which offers discounted designer clothing and accessories, at Bridgeport Village.

Though restaurants have been challenged during the recession, Portland’s restaurant scene has remained solid. Affordable, casual restaurants have generally fared better during the recession than their higher-priced counterparts, so many are focusing on this market. For instance, Foster Burger opened late last year in Southeast, and Little Big Burger is expected to open in Northwest this spring. Some of Portland’s popular food carts are even opening storefronts – Korean taco truck Koi Fusion, has opened a restaurant on NW Lovejoy. Some higher-end restaurants are also in the works – Lucier is expected to reopen in South Waterfront, and a group from San Francisco plans on opening a restaurant in the former Bay 13 space in the Pearl.

Specialty grocery stores have continued to do relatively well. The Whole Foods Market on NE 43rd and NE Sandy in Hollywood opened in January, and work has begun on the New Seasons Market on SE 40th and Hawthorne, which has long been delayed but is expected to open this fall.

Featured Deal: John’s Incredible Pizza Lease
John’s Incredible Pizza, a family entertainment restaurant with ten locations in California, is opening its 11th location in Portland. John’s leased 46,212 sf at the former Circuit City at Washington Green Shopping Center, 9180 SW Hall Boulevard, Tigard. John’s features a pizza, salad, soup, pasta and dessert buffet, as well as themed dining rooms and carnival-style rides and video and ticket-dispensing games. It’s expected to open in First Quarter 2011. NAI NBS Real Estate Broker J.J. Unger and NAI Capital Senior Vice President Irwin Hyman of Encino, California, represented the tenant.

Three NAI NBS Brokers Earn CCIM Designation

2010-04-29T16:26:00.000-07:00

NAI NBS' Neville Bassett (Portland), Doug Bartocci (Vancouver), and Garret Harper (Vancouver) have obtained the Certified Commercial Investment Member (CCIM) designation.

A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite group of more than 9,000 professionals across North America and in 30 countries abroad. Only 6 percent of the estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation, an indication of one of the most coveted and respected designations in the industry.

To attain the CCIM designation, each broker completed four core courses, an ethics course and three elective credits, prepared a portfolio and passed a comprehensive exam.

PDX Industrial Market Looking Up in First Quarter

2010-04-29T11:22:00.000-07:00

Industrial vacancy decreased slightly to 14.56%, with 118,458 sf absorbed. Vacancy in North/Northeast remained stable at 17.58%. Some large leases were signed in this submarket, including Owens Corning leasing 123,120 sf at Bybee Lake Logistics Center – Phase II. Ferrotec USA and Archive Systems also signed leases at Birtcher Center @ Townsend Way totaling 81,850 sf. Vacancy in Vancouver decreased about 1.5 percentage points, as 82,800 sf was leased up at Hart Industrial Center, bringing that property to 100% occupancy, and 40,267 sf was leased at Westside Business Center.

Flex vacancy rose nearly two percentage points to 18.01%, with 166,559 sf of newly available space coming back on the market. Much of this space can be accounted for by Intel, which vacated more than 100,000 sf at the Amberglen Business Center in moving back to its headquarters, pushing Southwest Sunset’s vacancy up more than two percentage points to 19.71%. Some positive absorption did occur, though. BiAmp Systems leased 50,963 sf at Nimbus Corporate Center in the Southwest 217 submarket, whose vacancy stayed fairly flat at 17.76%.

Market Trends
The industrial market showed continued signs of a slow but steady recovery during First Quarter. Vacancy in the Portland metro area, though still high, appears to have stopped rising, and construction and new deliveries have been so limited of late that the market isn’t burdened by oversupply. National economic indicators were looking up. Factory orders rose 1.7% in January, the largest increase in four months, with heightened demand for commercial aircraft, and industrial production rose 0.1% in February.

Manufacturers continue to invest in the Portland metro area. LaCrosse Footwear is moving production of Danner boots to a new 59,000 sf factory about a mile from its Northeast Portland headquarters, a facility twice the size of its current plant, which it is replacing. Production is expected to begin there in Third Quarter 2010. Boeing is also investing up to $120 million in upgrading its operation in Gresham, which will add 152 jobs in the next three years. It will build a new 60,000 sf facility on its 87-acre campus where it will treat metals used in making commercial aircraft.

NAI NBS Earns CoStar Power Broker Awards for Performance in 2009

2010-04-28T15:56:00.000-07:00

NAI Norris, Beggs & Simpson made a strong showing in the 2009 CoStar Power Broker Awards.

For the fifth consecutive year, NAI NBS was named a top leasing and sales firm in the Portland metropolitan market.

CoStar said in an article about the awards:

"Given the extreme economic conditions in 2009, last year was one that many in the commercial real estate would just as soon like to forget. Every commercial real estate broker who managed to secure a lease or arrange a building sale during the year probably deserves an award.

The ones who excelled under those conditions and achieved the highest transaction volume in commercial property sales and leases last year in their respective markets are especially deserving of industry-wide recognition. Which is why CoStar is especially pleased to present the 2009 CoStar Power Broker Awards, singling out those who persevered and earned the right to be called one of the 'best of the best' in commercial real estate brokerage."

A number of NAI NBS brokers earned individual awards:

Top Office Leasing Brokers: Jennifer Medak and John Medak
Top Retail Leasing Brokers: Gina Barendrick and J.J. Unger
Top Industrial Leasing Brokers: Michael Merino and Scott MacLean
Top Sales Brokers: Chris Johnson, MaryKay West and Robert Black

Visit the Power Broker website for the entire list.

First Quarter 2010: Portland's Central City Office Vacancy Stable, Suburban Still Rising

2010-04-26T13:54:00.000-07:00

Central City office vacancy remained stable this quarter at 11.99% (see vacancy comparison chart at right), with 54,312 sf absorbed. Some significant sales and leases occurred, especially in the Central Business District. The General Services Administration (GSA) signed four leases totaling more than 250,000 sf at First & Main, which delivered this quarter, and Alpha Broadcasting leased more than 25,000 sf at Pacwest Center. In one of the largest sales in recent months, KBS REIT II purchased One Main Place for $57 million, or about $180 per sf. American Pacific International Capital Inc. also purchased the office portion of the KOIN Center, reportedly for between $53 million and $60 million. Vacancy in Northwest fell more than a percentage point to 15.69%, as two tenants leased space at Machine Works, including the GSA in 19,431 sf.

Suburban office vacancy rose about a percentage point to 21.93%, with negative 142,240 sf absorbed. The Barbur Boulevard, Beaverton-Hillsdale/Sylvan and North/Northeast submarkets all saw vacancy rise at least two percentage points. Though vacancy in the Kruse Way submarket stayed relatively stable, this area saw some movement, including M & T Bank relocating from Kruse Woods I to about 20,000 sf in 4949 Meadows. A few submarkets had positive absorption, such as I-5 South, where vacancy decreased slightly and Pinnacle Mortgage Bankers leased 16,000 sf at Durham Office Center. Though a number of suburban buildings are totally empty, one will soon be fully occupied. The Oregon Institute of Technology is planning to purchase the 131,000 sf former headquarters of InFocus in Wilsonville, and consolidate its four Portland-area locations there. InFocus moved out of the building last fall to a smaller office in Tigard.

Vancouver vacancy fell nearly half a percentage point to 18.10%, with 42,644 sf absorbed. Vacancy in Class C space fell five percentage points to 14.57%, as 29,000 sf was leased up at the Former Red Lion Headquarters. Class A and B space also saw some significant absorption; Doug Williams and Associates and Richard James and Associates both signed leases at the Thurston 500 Building, totaling 12,583 sf.

Featured Deal: General Services Administration Leases

The General Services Administration (GSA) leased nearly 260,000 sf at First & Main at the west end of the Hawthorne Bridge. The GSA leases were the first for the building and took the office areas to 76% leased. The tenants were displaced by the redevelopment of the Edith Green-Wendell Wyatt Building and plan on taking occupancy in May. NAI NBS Vice President Jeff Borlaug, Executive Vice President Chris Johnson and Vice President MaryKay West represented First & Main’s owner, Shorenstein Realty Services.

John's Incredible Pizza Coming to Portland

2010-04-15T14:01:00.000-07:00

John’s Incredible Pizza, a family entertainment restaurant with ten locations in California, has leased space in the Portland metro area to open its first restaurant in the Pacific Northwest.

John’s leased 46,212 sf at the former Circuit City at Washington Green Shopping Center, 9180 SW Hall Boulevard, Tigard, Oregon. NAI Norris, Beggs & Simpson Real Estate Broker J.J. Unger and NAI Capital Senior Vice President Irwin Hyman represented the tenant. Hyman, out of NAI Capital’s Encino office, represents John’s in California, and through the NAI Global network teamed up with Unger when the company wanted to expand into the Pacfic Northwest.

A multitude of big box spaces have become available in the last two years with the closures of chains like Circuit City, Linens ‘n Things and Joe’s Sports, Outdoors & More.

“Landlords can find interested tenants, but in this market it’s been a challenge putting together a deal that works for both parties, and most importantly, finding a tenant that’s a fit for the merchandising plan of the shopping center,” Unger said. “It is a great win for Portland to gain such a unique new tenant from out of the area.”

The restaurant is expected to open in the First Quarter of 2011 and will create about 110 full- and part-time jobs.

John’s chose Portland to expand because it saw the opportunity to fill a niche that’s traditionally been underserved for entertainment, Unger said. The restaurant also believes it will be a good fit because of the weather – rain or shine, it will give families an indoor entertainment option and be a venue with the capacity to cater to large corporate functions. Though the Portland location is John’s Incredible Pizza’s first foray out of California, it has plans for more.

“We are pleased to bring our family-focused restaurant and entertainment facility to Portland,” said John’s Incredible Pizza Owner and Founder John Parlet. “We have been eager to expand our concept outside of California and found the perfect site in Portland and are excited to become an integral part of the community.”

John’s Incredible Pizza offers an affordably-priced all-you-can-eat buffet. It serves pizza, including classic varieties and signature ones like spicy peanut butter, macaroni and cheese, and cheeseburger pizzas. It also has a full salad bar, soup, pasta, and dessert buffet. It has a number of themed dining rooms, and an array of rides and games, including carnival-style rides and video and ticket-dispensing games. John’s hosts birthday parties, business events, lock-ins and more.

NBS Celebrates 78th Anniversary Today

2010-04-01T09:46:00.001-07:00

Today marks Norris, Beggs & Simpson's 78th anniversary. Here's a brief look at NBS' history.

NBS was founded in 1932 in Portland, Oregon, by A.D. Norris and George Beggs, and later joined by David B. Simpson. The company had a small office in the Wilcox Building, which still stands today at the corner of SW 6th Avenue and Washington Street in downtown Portland.

With the country mired in depression, few areas of the economy were left unscathed. Though the real estate industry suffered, Norris, Beggs & Simpson quickly became profitable by specializing in property management and acquiring many prominent families of the Pacific Northwest as clients.

New England Mutual Life Insurance Company of Boston played a key role in the early growth of Norris, Beggs & Simpson, by enlisting the company to manage a series of foreclosed properties in Portland and appointing the company as its mortgage loan correspondent in the area. Commercial and industrial brokerage services were also added to expand the company’s reach, and an emphasis was placed on involvement with major financial institutions.

NBS expanded into a full-service operation, and opened its Vancouver office in 1985 and Bellevue (now Seattle) office in 1988.

Today, NBS is the parent company of four different branches, including NAI NBS, which joined the NAI Global network in 1982. NBS has continued to grow and adapt to the changing times. Early this year, for instance, it joined with Susan Stratton, a local apartment executive, to found NBS Multifamily Management, a new apartment management company.

NAI Global Named Global Broker of the Year by PERE Magazine

2010-03-18T09:01:00.000-07:00

NAI Global, one of the largest commercial real estate service providers worldwide, has been named Global Broker of the Year by Private Equity Real Estate (PERE) magazine in the PERE Awards 2009.

"Each year, the readers of PERE magazine and PERENews.com nominate and choose the firms, individuals and deals they believe stood out from the crowd the previous year," said Zoe Hughes, Senior Editor, Real Estate. "2009 was a year in which the private real estate investing world experienced a tremendous amount of turmoil, so to be selected in this year’s awards is a tremendous accolade from our readers and a vote of confidence in what lies ahead for NAI Global."

"This award is a testament to the quality and commitment of NAI Global and its professionals around the world in serving the private equity and financial sectors," said Jeffrey M. Finn, NAI Global President & CEO. "Looking ahead, we will continue to innovate and add value with focused service offerings like our Special Asset Solutions group or the Commercial Property PowerSale™ program, to deliver exceptional results for clients around the globe."

NAI NBS Takes Home Three CAR Awards

2010-03-05T10:51:00.000-08:00

NAI Norris, Beggs & Simpson had a strong showing at the 2010 Commercial Associa t ion of Realtors (CAR) Awards Dinner last night at the Governor Hotel. The theme of the evening was “Building a Healthier Future,” and NAI NBS' Jeff Borlaug, the 2010 CAR President, emceed. NAI NBS' winners were:

-President Clayton Hering was named Co-Humanitarian of the Year. He is active in a number of charitable organizations, including the Oregon Symphony and Business for Culture and the Arts.
-Executive Vice President Chris Johnson was named Investment Broker of the Year.
-Associate Vice President Garret Harper (also NAI NBS' Top Producer of 2009) was named Industrial Broker of the Year.

We also had several runners up: Pam Lindloff for Retail Broker of the Year, Gina Baren dri ck for Rookie of the Year, and Jennifer Medak and John Medak for Office Broker of the Year. An insert in today's Portland Business Journal featured all of the winners and runners up.

CAR offers education, provides government advocacy and creates opportunities for commercial real estate professionals to connect and grow their business.

NBS Companies and Stratton Launch NBS Multifamily Management

2010-03-03T15:00:00.000-08:00

Norris, Beggs & Simpson Companies and Susan Bowlsby Stratton, a successful apartment management executive, have joined forces to found NBS Multifamily Management, a company dedicated to managing apartment communities of 100 units or more around the West Coast.

Why start a new venture in this economic climate? NBS Companies President J. Clayton Hering said he expects that as the job market grows, the demand for housing will increase, with a short supply of single-family and multifamily housing due to the significant reduction in construction over the last several years. With single-family lenders requiring greater equity and better credit, fewer people will be able to buy houses and will thus reenter the apartment market.

“With increased market activity the necessity for professional, value-added multifamily management will rise, and NBS Multifamily Management will provide a quality of service to enable multifamily owners to be competitive,” Hering said.

NBS Multifamily Management expects to hire more than 100 people in the area to run and maintain the apartment communities it will manage.

Stratton, who has more than 20 years of multifamily management experience up and down the West Coast, will serve as President of the new company. Stratton spent 13 years at Harsch Investment Properties, most recently as Senior Vice President of Operations, where she was responsible for the company’s multifamily division and managed up to 5,500 units. A native Oregonian, she will receive her Executive MBA from Pepperdine University in March.

“I am so pleased to be joining NBS,” Stratton said. “My years of experience combined with NBS’ very successful property management track record will allow us to shine in the multifamily management industry.”

Cassandra Haavisto will serve as NBS Multifamily Management’s Regional Manager for the Puget Sound area. Haavisto’s industry experience spans 20 years; she has managed more than 13,000 units during her career and worked for major companies like Harsch Investment Properties and Trammell Crow.

NAI Global Launches Special Asset Solutions Group to Focus on Distressed CRE Portfolios

2010-02-26T14:49:00.001-08:00

NAI Global has formed a Special Asset Solutions™ group to assist clients with financially distressed real estate assets and REO.

The new group concentrates NAI Global’s resources across multiple disciplines and markets to provide banks, financial institutions, special servicers and other holders of REO assets with the full spectrum of services an asset is likely to require throughout the ownership cycle. The group’s offerings include loan sales and restructurings, asset and property management, receivership, due diligence, valuation, leasing and disposition.

“With a large number of assets coming under their supervision over the next 12-24 months, lenders are having to adapt to a new role as de facto property owners,” notes NAI Global President & CEO Jeffrey M. Finn. “This realignment of our established service lines enables understaffed REO departments to focus on their core competencies while proactively dealing with their nonperforming loans and REO.”

NAI’s Special Asset Solutions™ team, led by Executive Vice President Rhyne Brown, works with the client to assess the physical asset, preserve and enhance the asset’s current value, mitigate risk and put a strategy in place to dispose of the property or loan. The team is supported by the local expertise of 5,000 professionals in over 325 NAI offices worldwide.

“While there are a variety of issues that must be addressed along the way, the ultimate goal for many of our clients is a successful disposition,” Brown says. NAI employs a variety of disposition methods, from traditional marketing to loan sale programs and accelerated marketing programs like the Commercial Property PowerSale™, NAI Global’s online property auction platform. NAI’s disposition expertise runs across all property types and ensures broad exposure to commercial real estate investors across the U.S. and worldwide.

NAI Global's Global Market Report Details Challenging 2009

2010-02-10T10:05:00.000-08:00

Commercial real estate markets around the world experienced the full impact of the global economic recession in 2009, according to the 24th annual Global Market Report released by NAI Global. Rising vacancy rates and declining rental rates were evident in virtually every market sector and geography, with weak demand and a growing supply of sublease space further eroding market fundamentals.

After a turbulent 18-24 months since the market peaked, 2009 marked a year where transaction volume nearly came to a standstill as corporate tenants waited for clear signs of recovery and investors remained on the sidelines waiting for signs the bottom has been reached. As the year progressed, government intervention in the form of stimulus packages in the U.S., Europe and parts of Asia took hold and by year’s end many markets had begun to stabilize. However, with U.S. unemployment topping 10%, consumer demand and spending power at their lowest levels in decades and international manufacturing and trade proceeding at a crawl, the global recovery will take some time to truly stimulate economic growth.

“The past year was extremely challenging for commercial real estate, and we don’t anticipate much new demand in 2010,” said Jeffrey M. Finn, President & CEO of NAI Global. “We’re working with our corporate clients to help them take advantage of the current tenants’ market to reduce their long-term occupancy costs. Many tenants are able to negotiate more favorable lease terms today in exchange for a longer commitment. This ‘extend and blend’ practice is a trend we see continuing well into the next 18-24 months.”

Investors who have been sidelined by economic uncertainty will see tremendous acquisition opportunities in the coming year as banks and financial institutions clean up their balance sheets and move more aggressively to dispose of commercial real estate loans and financially distressed real estate assets, said Finn.

“The recession has been over for six months and job growth is just months away, but the fact remains it will be impossible to predict what will happen next,” added Dr. Peter Linneman, NAI Global Chief Economist and Principal at Linneman Associates. “With significant tax, healthcare and regulatory proposals still in the offing, there is little clarity as to the ultimate outcomes or costs. We’re concerned with commercial mortgage delinquency rates as they have been on the rise and could keep the commercial real estate industry in neutral for several more months.”

NAI Global is one of the largest real estate services providers worldwide. Headquartered in Princeton, New Jersey, NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries. Now in its 24th year, NAI’s Global Market Report offers insider insight and perspective on market conditions reported by NAI experts on the ground in over 200 property markets worldwide. To obtain a copy of the full report, contact psetaro@naiglobal.com.

Vancouver Industrial Broker Garret Harper is Number One Top Producer of 2009

2010-02-03T10:43:00.000-08:00

Garret Harper, the brokerage department’s Number One Top Producer of 2009 and an industrial specialist, makes his first appearance in the Top 5. He has been with NAI NBS since 2003, and participated in 28 deals totaling $18 million in 2009. A number of his deals were significant sales, including the $5.5 million sale of a 19-acre parcel at Birtcher Business Center to the US Army Corps of Engineers and the $4.23 million sale of a 64,000 sf Vancouver warehouse. He serves as Treasurer of the Evergreen School District Foundation Board.

Jennifer Medak and John Medak Tie for Number Two Top Producer of 2009

2010-02-03T10:08:00.000-08:00

Office brokers and siblings John Medak and Jennifer Medak, who have both been with NAI NBS for about 10 years, tied as the Number Two Top Producers of 2009. They completed 88 deals valued at more than $57 million last year. Significant transactions from 2009 included the $8.2 million sale of Dartmouth Square in the Tigard Triangle area, and the $13 million sale of downtown’s Spalding Building. They also helped Greenbrier lease almost 40,000 sf at One Centerpointe, and brokered the $2.1 million sale of a 9,000 sf Lake Oswego office building.

MacLean Takes Number Four Top Producer of 2009 Spot

2010-02-03T10:04:00.000-08:00

Industrial broker Scott MacLean is NAI NBS' Number Four Top Producer of 2009. MacLean has appeared on this list multiple times during his 13 years as an industrial specialist with NAI NBS. In 2009 he was involved in 54 deals valued at $27 million. He helped 24/7 Inc. lease 50,000 sf in NE Portland, and represented the seller in the $2.85 million sale of an 80,000 sf warehouse on SE Belmont. MacLean is on the NAIOP Board of Directors.

Industrial Broker Dodds is Number Five Top Producer of 2009

2010-02-03T09:58:00.000-08:00

Steve Dodds was NAI NBS' Number Five Top Producer of 2009. Dodds has been with NAI NBS for 25 years, and participated in 11 deals valued at more than $22 million during 2009. He represented the buyer in the $8.3 million purchase of Quad 205 Business Park in Vancouver, and helped Benson Industries lease 56,000 sf on NW Yeon.

Winder Honored as NAI NBS Manager of the Year

2010-02-03T08:45:00.001-08:00

NBS Companies honored Mark Winder as Manager of the Year in the Property Management Division at the company's annual Awards Banquet January 30. Winder joined NAI NBS in 1996 and manages the engineering services division, which consists of nineteen engineers.

In 2009, Winder was instrumental in the department’s business development, writing new business proposals and ensuring compliance on vendor contracts. He is known as a “jack of all trades” – a valuable resource for the department and its clients. He is LEED AP certified and holds a number of other engineering certifications.

Portland Industrial, Retail Vacancy Decreased During Fourth Quarter, NAI NBS Reports Show

2010-01-25T10:25:00.000-08:00

NAI Norris, Beggs & Simpson has released its Fourth Quarter 2009 quarterly reports for office, industrial, retail and multifamily commercial real estate, as well as its economic report.

Office vacancy increased slightly to 11.81% in Central City and 20.95% in the suburban areas. The Northwest submarket saw some activity – the 87,976 sf redevelopment Soho 321 delivered, and a few leases were signed at Machine Works. Vancouver vacancy was flat at 18.56%, with positive absorption of 22,488 sf.

Industrial vacancy decreased to 14.85%, with 55,308 sf absorbed. This was the first positive absorption since Third Quarter of 2008. A number of sizeable leases were signed in North/Northeast, including MOR Furniture for Less leasing 156,000 sf at Kelley Point Distribution, and Rose City Printing & Packaging leasing 62,000 sf at Sandy Boulevard Business Park. Flex vacancy rose slightly to 16.16%.

The retail market saw some improvement this quarter as vacancy decreased more than half a percentage point to 7.4%, with 349,919 sf absorbed. The 140,000 sf Cascade Station Target delivered, and better than expected holiday retail sales results were encouraging.

Multifamily vacancy rose nearly a percentage point to 5.43%; a seasonal uptick in vacancy is to be expected, but this rise was more significant. Rents were largely flat. While multifamily permitting and construction is down, opportunities exist for developers to acquire buildable land at substantially lower prices. Yet barriers to development include lack of capital and uncertainty of future rental rates.

Click here for full reports.

Honzel Helps Haberdashers Lease 1,808 SF at Bridgeport Village

2010-01-11T08:00:00.000-08:00

NAI Norris, Beggs & Simpson Real Estate Broker Tyler Honzel represented Haberdashers, a men's clothing store, in its lease of 1,808 sf at Bridgeport Village in Tigard. The store opened on Black Friday.

The Bridgeport Village store has a pool table and bar, and carries brands like Lacoste, Ben Sherman, Original Penguin, 7 For All Mankind and AG Adriana Goldschmied.

Haberdashers also has a location on N. State Street in Lake Oswego.

NBS Companies Named one of Top Donors to Arts and Culture in Oregon

2010-01-05T17:25:00.000-08:00

Norris, Beggs & Simpson Companies has been named one of the top donors to arts and culture in Oregon by Business for Culture & The Arts (BCA). BCA‘s mission is to engage every business in the arts - to build audiences, encourage volunteerism, strengthen board capacity, recognize and stimulate community leadership and create arts advocates. NBS Companies ranked seventh on the list of medium-sized companies (100 to 499 employees).

NBS Companies donated nearly $20,000 to the arts in 2009. Recipients included the Oregon Symphony, Young Audiences, and the Portland Art Museum. Many of NBS’ partners also serve on the boards of arts organizations.

NAI NBS Named One of Oregon's Most Admired Companies

2009-12-11T10:13:00.000-08:00

For the fifth consecutive year, NAI Norris, Beggs & Simpson was recognized as one of Oregon's Most Admired Companies, based on a survey of Oregon CEOs conducted by the Portland Business Journal. NAI NBS ranked fourth out of the top ten Most Admired Commercial Real Estate Companies. President Clayton Hering accepted the award at a luncheon held at the downtown Hilton yesterday.

About 1,800 CEOs and top-level managers in Oregon and Southwest Washingotn were surveyed to determine the Most Admired Companies. 128 commercial real estate companies throughout the state were nominated for inclusion on the list. The PBJ has a complete list of the winners in the commercial real estate category and others (such as manufacturing, technology and nonprofits).

Local Economist Mitchell Provides Economic Forecast for 2010

2009-12-09T14:48:00.000-08:00

Local economist John Mitchell gave an economic forecast for 2010 at a Portland Business Alliance forum this morning. Mitchell said that the recession is likely either over or nearly over, and projected a fairly slow recovery. Though residential real estate has already seen gains, he expects commercial real estate to take much longer to recover. Mitchell is a principal at M & H Economic Consultants, and was previously a chief economist at US Bancorp.

The Daily Journal of Commerce and Portland Tribune both covered the event, and Oregon Business Editor Robin Doussard has a good blog post about it.

The PBA holds breakfast forums once a month. January's forum is on the future of Portland's newspapers.

NAI NBS Special Asset Team and Johnson Reid Team Up to Release 3Q09 Single-Family Housing Report

2009-12-01T10:20:00.000-08:00

NAI Norris, Beggs & Simpson’s Special Asset Team and Johnson Reid, a consultancy specializing in real estate development and land use economics, have collaborated to release a single-family housing report for the Portland metro area for Third Quarter 2009.

The report covers both lots and standing inventory in Portland and Vancouver, and contains some good news for the market.

“Market watchers think that the bottom of the curve is behind us and that we are well on our way into a recovery in this hard-hit market,” said NAI NBS Executive Vice President H. Roger Qualman, who heads up the Special Asset Team.

The inventory of new and used homes and lots is declining, the report says, and houses between $150,000 and $199,000 are a sweet spot for action.

NAI NBS’ Special Asset Team, consisting of five brokers in Portland and Vancouver, was created within the firm to respond to the collapse of property markets through the Pacific Northwest. Tight financing for housing, investors and developers has created a need for its services as stress is placed on banks, bankers and banking relationships. The Special Asset Team works with lenders to provide strategic solutions for distressed assets, improved properties or loans.

The full report can be found here.

NAI NBS Represents Buyer in $8.275M Purchase of Quad 205

2009-11-17T08:28:00.000-08:00

NAI Norris, Beggs & Simpson Vice President Denis O’Neill and Vice President Steve Dodds represented Spears Real Estate, LLC in the $8.275 million purchase of Quad 205 Business Park, a 108,625 square foot landscaped business park in Vancouver, Wash. NAI NBS also took over building leasing and management in the trade.

The buyers are local private investors and were attracted to the property because of the mix of local and regional companies, according to Dodds. They feel the property has great long-term potential, which they can facilitate through personal attention and quick decision-making.

Built in 1983, Quad 205 comprises four buildings near the intersection of NE 112th and NE 39th Streets in the Orchards area, with easy access to I-205.

“Quad 205 is in a great location on the 112th Avenue corridor and offers high-quality light industrial space with nice office build-outs,” said NAI NBS Senior Salesperson Garret Harper, the leasing agent.

Spaces range from about 1,000 to 10,000 square feet, and some major tenants are Johnstone Supply, Thermal Supply and Automotive Electrical Distribution. Large industrial neighbors include companies like SEH America. Quad 205 has tilt concrete construction, dock and drive-in doors, and plentiful parking.

NAI NBS Property Managers Take Home IREM Awards

2009-11-13T11:10:00.000-08:00

NAI Norris, Beggs & Simpson and three of its property managers were honored with awards at the Institute of Real Estate Management (IREM) Oregon chapter annual awards ceremony on Nov. 3 in Portland.

Associate Vice President Traci McCauley, CPM, was honored as Certified Property Manager of the Year. Property Manager Kathi Pearce was recognized as CPM Candidate of the Year. McCauley and Pearce work in NAI NBS’ Portland office. Senior Property Manager Kimberly Fuhrer, CPM, who works in the company’s Vancouver office, was recognized for Outstanding Member Participation of the Year.

NAI NBS was also recognized as Sponsor of the Year.

IREM has been the source for education, membership, resources and information for real estate management professionals since 1933. An affiliate of the National Association of REALTORS®, IREM is the only professional real estate management association serving both the multi-family and commercial real estate sectors. With a network spanning 81 US chapters, eight international chapters and several other global partnerships, its membership comprises over 18,000 individual members and 500 corporate members around the world.

NAI NBS President Hering Receives Award from Portland Business Alliance

2009-11-09T08:34:00.000-08:00

J. Clayton Hering, President of Norris, Beggs & Simpson Companies, was honored with the 2009 William S. Naito Outstanding Service Award at the Portland Business Alliance’s Leadership Evening at the Portland Art Museum on Nov. 4.

The award recognizes exceptional leadership and service to the business community, and has been awarded to a member of the PBA since 1985. In the 1990s, it was renamed to honor the late Bill Naito, whose work exemplified the values the Alliance recognizes – community service, philanthropy and leadership. Past recipients include Fred Stickel, publisher of The Oregonian, the late Bob Gerding, cofounder of Gerding/Edlen Development Company, and Peggy Fowler, CEO of Portland General Electric.

Hering is active in a number of community organizations, and is a strong proponent of the arts. He is on the Portland Business Alliance Board of Directors, and is the Vice Chair of the Oregon Symphony Board of Directors. He is on the OHSU Foundation Board of Trustees, and has been involved with Young Audiences of Oregon/SW Washington and many other organizations.

Hering, a graduate of Dartmouth College, served in the United States Marine Corps for three years, including service in Vietnam where he attained the rank of Captain. He joined Norris, Beggs & Simpson Companies in 1972, was promoted to partner and regional manager in 1976 and became president in 1989. He oversees the company’s finance division, capital asset group and office and retail brokerage operations.

NAI NBS Adds Braam to Special in Sales of Special Assets

2009-11-06T08:00:00.000-08:00

Sierk Braam has joined NAI Norris, Beggs & Simpson’s Vancouver office as a Real Estate Salesperson specializing in the sales of special assets. Braam joins NAI NBS' Special Asset Team, an existing team of brokerage professionals working with lenders on foreclosed or bank-owned properties, including subdivisions, entitled land, and improved properties in the Portland Metropolitan Area.

Most recently, Braam served as Vice President of Specialty Lending and Emerging Markets for National City Mortgage’s Western Division. He was responsible for managing specialty lending and emerging markets and increasing specialty production by at least 20% every year.

Braam holds a Bachelor of Arts from the University of Oregon, and a Master of City and Regional Planning from Ohio State University.

NAI NBS' Fuller Earns CCIM Designation

2009-10-27T08:00:00.000-07:00

NAI Norris, Beggs & Simpson Vice President Tamara Fuller, a broker specializing in office leasing and sales in Clark County, has obtained her Certified Commercial Investment Member (CCIM) designation.

To attain the CCIM designation, Fuller completed four core courses and three elective credits, prepared a portfolio and passed a comprehensive exam.

A CCIM is a valuable resource to the commercial real estate owner, investor, and user, and is among an elite group of about 9,000 professionals in North America and in 30 countries abroad. Only 6% of the estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation, according to the CCIM Web site.

Fuller joined NAI NBS in 2000 and has since had a hand in leasing nearly a million sf of space, and selling about $18 million in total value of real estate. She was NAI NBS’ #2 Top Producer and #3 Deal Maker of the Year in 2008. Fuller is on the board of the Greater Vancouver Chamber of Commerce and is active in the Rotary Club of Greater Clark County and SW Washington Junior Achievement.

NAI NBS Broker Buzz for October: Retail Market is Tenants' Market

2009-10-26T11:07:00.000-07:00

In a recent column for the Daily Journal of Commerce, NAI NBS retail brokers Gina Barendrick and J.J. Unger highlighted the Portland metro retail market. Though this recession has been tough on retailers, they say the current climate is a retail tenant's market.

Here's an excerpt:

"Location, location, location. It's a saying many retailers take to heart. From restaurants to boutiques to grocery stores a prime location is a priority; however, Class A space in popular shopping centers can be costly.

This recession has been tough on retailers, but there is some good news. Increased vacancy in the retail market translates to lower rental rates so companies can move to a better location for less than they would in better economic times."

The whole article can be found here.

Neville Bassett Joins NAI NBS Industrial Team

2009-10-16T13:05:00.000-07:00

NAI Norris, Beggs & Simpson has added Neville Bassett as a Real Estate Broker on the industrial team in Portland.

Most recently, Bassett was a Senior Account Executive in Business Property at GE Capital. In this position he sourced and closed commercial real estate loans, closing 43 transactions valued at $120 million between 2005 and 2009. His career at GE Capital spanned 15 years. He also has experience in commercial equipment finance and sales management.

Bassett holds a BS in business and economics from Eastern Oregon University, and is a licensed broker in Oregon. He is actively working toward achieving the Certified Commercial Investment Member (CCIM) designation.

Bassett's resume and contact info can be found here.

NAI NBS Releases Third Quarter Reports

2009-10-07T16:36:00.000-07:00

NAI Norris, Beggs & Simpson has released its Third Quarter 2009 quarterly reports for office, industrial, retail and multifamily commercial real estate, as well as its economic report.

Office vacancy in Central City rose slightly from the previous quarter to 11.12%, with -272,692 sf absorbed. Two Class B buildings in Northwest were major contributors to this rise in vacancy and negative absorption. Vacancy in the suburban office markets rose about a percentage point to 20.59%, and Vancouver office vacancy rose to 18.42%.

Industrial vacancy increased to 14.94%, with -531,805 sf absorbed. One positive sign for the industrial market this quarter was Daimler Trucks North America’s decision to keep its Swan Island plant open. The plant had previously been scheduled to close in June 2010.

Vacancy in the retail market rose to 8.0%, with 365,818 sf newly available. The closure of all Joe’s Sports & Outdoors stores helped contribute to the increased vacancy, but Dick’s Sporting Goods leased a few previous Joe’s locations in the metro area.

Multifamily vacancy decreased slightly to 4.64%, which can partly be attributed to more tenants being active during the summer months; some landlords offered rent concessions and other incentives to attract tenants. Multifamily rental rates rose slightly.

A PDF of all of the reports can be found here.

Has the Market Hit Bottom?

2009-10-02T10:43:00.000-07:00

This question has been the subject of much speculation lately from commercial real estate experts, economists and more. National Real Estate Investor recently published an article suggesting that the bottom is likely imminent, because investors are starting to gather capital in anticipation of making property acquisitions again. The publication surveyed more than 500 property owners in August to get a feel for where this market is headed.

Columbia Tech Center’s 17200 Mill Plain Gains Three New Tenants Despite Tough Office Market

2009-09-24T09:13:00.000-07:00

Columbia Tech Center’s 17200 Mill Plain Boulevard has gained three new tenants and an existing tenant has expanded since NAI Norris, Beggs & Simpson listed the 52,845 sf building in May, taking it from nearly 85 percent vacant at the beginning of 2009 to more than three-quarters occupied today.

Charter College, which is opening a new Vancouver branch, leased 17,112 sf, and Insitu, a tenant since February 2008, expanded into 7,470 additional sf. Barbara Bushell, Director of Leasing for Columbia Tech Center, represented the owner, PacTrust, on these transactions.

American Ultraviolet Company, another business that is new to the area, leased 5,156 sf, and Ciber, Inc. leased 4,150 sf. NAI NBS Vice President Tamara Fuller and Senior Salesperson Doug Bartocci represented PacTrust on those leases.

The quality of the two-story Class A building, built in 2007, the myriad amenities in the growing East Vancouver area, and excellent rates attracted tenants to the building, Fuller said.

Columbia Tech Center is a mixed-use development featuring 2.8 million square feet of commercial space on 412 acres. Major tenants include Nautilus, Logitech, Rose City Printing and Packaging and CRU-Data Port.

Investment Market May Be Down, But It's Not Out, Brokers Say

2009-09-18T14:03:00.000-07:00

NAI NBS' MaryKay West and Chris Johnson had a column in Portland's Daily Journal of Commerce yesterday about the investment market. They chronicle how the investment market reached the state it's in today, where it is headed and when we can expect a recovery. Though it is a challenging time to be a broker, they say that those who are patient, professional and persistent can still get deals done. You can find the article here.

Barendrick Moves to Portland Office

2009-09-10T10:45:00.000-07:00

Real Estate Broker Gina Barendrick has moved to NAI Norris, Beggs & Simpson's Portland office. Barendrick, a retail specialist, has been in NAI NBS’ Vancouver office since 2006.

Barendrick is teaming up with Real Estate Brokers J.J. Unger and Tyler Honzel to provide comprehensive retail services throughout the Portland metro area. Barendrick has extensive knowledge of the Vancouver and Southwest Washington markets and will continue to have listings in these areas, while also taking on listings in Portland.

Barendrick holds a bachelor of arts in public relations from Gonzaga University, and is a licensed real estate broker in Oregon and Washington. She is involved with the International Council of Shopping Centers Next Generation Planning Committee, among other industry groups.

NAI NBS Represents Seller in Sale of Tigard Office Building

2009-08-27T09:00:00.000-07:00

City County Insurance Services has purchased the 13,593 sf office building at 11625-11675 SW 66th Ave. in Tigard for $2.25 million. NAI Norris, Beggs & Simpson's Chris Johnson, MaryKay West and Charlie Floberg represented the seller.

The building was constructed in 1963 and is close to I-5 and Pacific Highway. It sits on more than an acre of land.

Check out Costar's coverage of the sale here.

Portland Apartment Vacancy Rising, But Market is Poised for Upswing

2009-08-20T09:40:00.000-07:00

Robert Black, Associate Vice President, NAI NBS

Portlanders may be noticing more “For Rent” signs on apartment buildings around the city this summer, one of the more noticeable signs of how this recession has affected the apartment market. Apartment vacancy is rising across the metro area and multifamily investment sales are down, but the Portland market will recover from this economic downturn and be well-positioned for a comeback.

NAI Norris, Beggs & Simpson’s Second Quarter 2009 reports show a slight increase in apartment vacancy from the previous quarter to an overall 5.03 percent; this report only surveys select apartment complexes with more than 100 units, so vacancy across complexes of all sizes could likely be a bit higher.

The increase in vacancy doesn’t mean that people are moving out of the city. In fact, the Portland metro area’s population has been increasing in recent years. The U.S. Census Bureau estimates that Multnomah County’s population rose 2.2 percent in 2008, and that the greater Portland area’s population reached 2.2 million people last year. Portland’s relatively low cost of living, in addition to diversified job prospects and plentiful outdoor activities, continue to attract new residents.

So where are the renters living, if they’re not leaving Portland? Many of them are doubling up in apartments, moving in with family, or renting single-family homes. Though Portland unemployment decreased slightly to 11.6% in June, renters are still concerned about job security and layoffs, so they are taking any steps they can to save money.

Some tenants are also choosing to purchase homes. With median home sale prices down 13.8 percent from this time last year, an $8,000 first-time home buyer tax credit from the federal government and historically low interest rates, buying a home is becoming an option for more people.

Landlords are doing everything they can to attract the fewer active renters in the market. Concessions today in certain submarkets are sizeable, including up to two months free rent on a 13-month lease for some new properties in the downtown area. Renters looking for a new place to live are shopping around for the best deals they can get, and existing tenants are also tuned in and looking for bonuses to extend their leases on expiration.

The Portland-area submarket that everyone is keeping an eye on is downtown. Downtown has seen a building boom over the past five years, and with the condominium market softening at the end of 2007, developers looked for conversion options for projects proposed and under construction.

What resulted was one of the largest deliveries of new units the market has ever seen. Between February 2008 and today, the market added about 2,030 new units in the Central Business District (CBD), according to NAI NBS’ research, with another 450 units under construction delivering between fall 2009 and spring 2010.

This may seem like a large number, but there’s a reasonable explanation. From 2003 to 2007, more than 1,500 existing apartment units in the CBD were actually converted into condominiums. This loss of rental units helped drive the surge in the CBD apartment market, and when the new units began delivering in early 2008 the CBD had strong fundamentals, with the largest historic rental rate growth and vacancy below 3 percent.

If history is our guide in estimating demand for CBD apartments, it will take time to absorb the new product, but once the market stabilizes, in about 24 months, vacancy will tighten and rent growth will return, since there will essentially be no building in the remainder of 2009 and 2010.

Vacancy in the suburban markets is increasing, but because much construction of the past few years occurred nearer to the city’s core, they are well-positioned for when tenants become more active again. And when this happens, the suburbs will likely be underbuilt, driving demand and pushing rental rates back up to 2008 levels and beyond.

Multifamily investment sales have been seriously affected by the recession. The Portland metro area has seen approximately $137 million in apartment sales so far this year through the end of July, according to data gathered from CoStar, a commercial real estate information company. That figure for January to July of 2008 was around $656 million. This equates to a nearly 80 percent drop in sales.

2008 was a record year for apartment sales, and one critical component to the sales volume that year was the number of institutional sales, which we define as sales valued at $20 million and above. In 2008, $380 million worth of transactions was in individual sales over $20 million, while thus far 2009 has produced just one transaction above $20 million. When we omit the institutional transactions, the volume in 2009 compares more favorably, at about 43 percent of the volume in 2008.

Despite the impact of the recession on the apartment market, Portland is in a good position for the upswing. U.S. News & World Report recently named Portland and its commercial market one of the ten cities “primed for a real estate recovery,” due to its green economy and overall economic health. When the job market and overall economy starts to improve, Portland’s multifamily market will be in a strong position for a rebound.

NAI NBS Named a CoStar Power Broker for Leasing and Sales in 2008

2009-08-19T09:15:00.000-07:00

NAI Norris, Beggs & Simpson has been named a CoStar Group Power Broker top leasing and sales firm in Portland, OR, for the fourth year in a row. Many individual NAI NBS brokers also received recognition:

-Top Office Leasing Brokers: Jeff Borlaug, Chris Johnson, MaryKay West
-Top Retail Leasing Brokers: Gina Barendrick
-Top Industrial Leasing Brokers: Randy Young, Scott MacLean
-Top Sales Brokers: Chris Johnson, MaryKay West

You can find all award recipients for the Portland metro area here.

CoStar Group is a leading information provider for the commercial real estate industry. CoStar tracks data on commercial properties and transactions throughout the U.S., UK and France. The Power Broker Awards are presented annually to the top brokerage firms and individual agents in major U.S. markets based on their leasing and sales transaction activities the prior year.

NAI NBS Brokers $8.2M Sale of Dartmouth Square

2009-08-05T09:10:00.000-07:00

Tualatin Valley Fire & Rescue has purchased Dartmouth Square, a 38,000 sf office building in Tigard, for $8.2 million. NAI Norris, Beggs & Simpson Executive Vice President Chris Johnson, SIOR, and Vice Presidents MaryKay West, CCIM, John Medak and Jennifer Medak represented the seller, Dartmouth Square LLC.

Dartmouth Square, a three-story Class A building, is at 11945 SW 70th in the Tigard Triangle, close to I-5 and Highways 217 and 99. Tualatin Valley Fire & Rescue was attracted to the location and quality of the building, and will use it for administrative offices.

Dartmouth Square delivered in November 2008 and has been vacant until now.

“We were very fortunate to line up an owner/user such as Tualatin Valley Fire & Rescue in this very challenging, capital-starved real estate market,” Johnson said. “The fact that they were an all-cash buyer made this transaction doable.”

Read CoStar's write-up of the sale here.

Portland Apartment Vacancy Rising, According to NAI NBS 2Q09 Report

2009-07-28T13:38:00.000-07:00

Overview

Multifamily vacancy continued creeping upward to 5.03% during Second Quarter. Vacancy a year ago was 3.46%, for comparison. Vacancy in SE Portland increased considerably to 7.37%, and SW Portland vacancy also saw a large jump to 5.70%. Vacancy in both the Gresham/Troutdale and Lake Oswego/ West Linn submarkets decreased, remaining below 4%. Rents stayed essentially flat, hovering around where they were last quarter.

Market Trends

Apartment vacancy is on the rise, and our report, which polls select apartment complexes, may be slow to reflect this trend. The increase in vacancy isn’t due to residents moving away from Portland; even with the second highest unemployment rate in the nation, the area’s population is still growing at a healthy rate. Rather, tenants are doubling up, moving in with family, or moving to single-family rental homes. Landlords are now competing for the fewer active tenants by dropping rents and offering other incentives.

Downtown multifamily construction was booming in 2007 and 2008, with a large number of new units entering the market at the same time. As a result, 2,200 new units delivered from mid 2008 to March 2009. These new arrivals will take time to absorb and cause pressure on the entire market. But since very few new projects are in the pipeline, many of these units should be absorbed by 2011 evening out supply and demand.

The balance of the market has seen very light construction activity over the past two years. The lack of suburban building is allowing the small number of new units to be absorbed quickly. We expect to see a strong rebound to the suburban multifamily market when tenants start circulating. Though unemployment in Oregon is at an all-time high, Moody’s Economy.com predicts that Oregon will help lead the country out of the recession, with the state’s job market beginning to recover in late 2009, so leasing activity should increase and rental rates trend higher as unemployment decreases.

Transaction volume for apartment complexes remained very slow during Second Quarter. Cap rates are currently unpredictable and difficult to calculate, partially because of the volatility in interest rates and the lack of transaction data. But there is still some activity and financing available, especially through lenders like Fannie Mae and Freddie Mac.

NAI NBS Second Quarter Retail Report: Vacancy Rises, But Some Bright Spots

2009-07-23T13:23:00.000-07:00

Overview

Retail vacancy rose slightly to 7.1% during Second Quarter, with 240,321 sf of newly vacant space. Central City vacancy increased by a percentage point to 9.2%, with a large portion of this area’s negative 30,000 sf of absorption in the Close-In NW area. The suburban submarkets saw significant absorption, both positive and negative, in larger spaces. Vacancy in the 122nd/Gresham submarket rose nearly a percentage point to 8.4%, partly due to Joe’s Sports & Outdoors vacating 55,120 sf at Gresham Town Fair. But, the good news is that Grocery Outlet opened a 20,020 sf store at Sandy Marketplace on Highway 26 in this submarket in May.

Southwest retail vacancy rose nearly one percentage point to 7.5% with 88,722 sf newly vacant, due in large part to the more than 20,000 sf Zupan’s at Appleway Corner closing, and the departure of Linens-N-Things from Cascade Plaza Shopping Center. Retail vacancy in Vancouver also increased to 8.7%, with 91,000 sf newly available at Vancouver Plaza.

Noteworthy News

Some recent indicators, such as May consumer confidence that reached a 9-month high, are suggesting that the retail slump may end soon. But national and local retailers alike continue to struggle. Joe’s Sports & Outdoors liquidated in early April after filing for bankruptcy. The closure of stores like Joe’s and other big-box retailers is injecting an excess of large retail spaces into the market, and not many big-box retailers are looking to expand and fill them. So retail brokers are getting creative in trying to fill this vacant space, including marketing to non traditional tenants like thrift stores, service retailers or call centers, and trying to attract tenants who are surviving the recession better than others, like discount retailers.

Retail tenants aren’t the only ones feeling the recession. General Growth Properties, which operates Pioneer Place and Clackamas Town Center and some community shopping centers in the Portland metro area, filed for bankruptcy in April. GGP, the second largest mall owner in the country, is expected to keep all of its malls open, but may sell some properties.

Construction of new retail properties has slowed considerably in recent months, but some projects are still in the works. During Second Quarter 2008, just one year ago, Vancouver alone had nearly 300,000 sf under construction, while today it has only 16,080 sf at Lacamas Square. Portland’s Eastside retail submarket has the largest amount of retail currently under construction at 193,919 sf, largely due to the 140,625 sf Cascade Station Target, which is expected to deliver this November.

Portland Industrial Vacancy Rises in Second Quarter, NAI NBS Report Shows

2009-07-21T10:41:00.000-07:00

Overview

Industrial vacancy increased nearly a percentage point during Second Quarter to 13.87%, with 515,518 sf coming back on the market. Vacancy in North/Northeast increased substantially to 17.51%. Although there was one major lease, Ernest Packaging took 62,150 sf at PDX Corporate Center South. Vacancy in Vancouver also increased substantially, to 12.30%. Several tenants left Columbia Business Center. Vacancy in Southeast decreased by a percentage point to 10.17%, largely due to Leverage 2 Productions leasing 62,765 sf in two buildings at Clackamas Commons Phase II.

Flex vacancy rose to 15.11%, with a loss of 159,633 sf, and much of the movement in small spaces. The Southwest 217 submarket saw vacancy increase nearly three percentage points to 17.49%, with more than 20,000 sf becoming available at both Creekside Corporate Park and Nimbus Corporate Center. However, Kleinfelder West leased 13,319 sf at Nimbus Oaks – Building C.

Market Trends

Metro, the area’s regional government, released a preliminary urban growth report this quarter suggesting that the Portland Metropolitan Area will require up to 82 million sf of industrial space by 2030, though it also expects manufacturing jobs to continue to decline.

Industrial projects under construction have decreased significantly in recent months, but work continues on one long-awaited project: the FedEx Ground facility in Troutdale. The three building, 415,000 sf facility is expected to be finished in July 2010 and should create 650 new jobs.

Jobs are also being created by adding lanes on nearby South Frontage Road and some additional road projects to prepare for the increase in truck traffic in that area. Transaction volume has slowed considerably, and many industrial sales today are in the $1 million to $5 million range. But Second Quarter had one large, standout transaction: SEH purchased the Vancouver Hewlett-Packard campus for $55 million. SEH, which makes silicon wafers, employs more than 800 people in Vancouver and will use the 4-building, 694,000 sf campus to expand. HP will lease back part of the complex for at least three years. In the works since late 2008, and area leaders hope the sale/expansion will create local jobs.

The full report is available on our Web site.

NAI NBS Second Quarter Office Report: Central City Vacancy Staying Stable, Suburban and Vancouver Vacancy Rising

2009-07-20T15:39:00.000-07:00

Central City office vacancy stayed essentially stable from First quarter at 10.33%, with positive absorption of 47,803 sf. Class A space in the Central Business District remained tight at 6.25% vacancy, with considerable movement in spaces under 10,000 sf. No new available space will deliver in the CBD until Shorenstein’s First & Main finishes construction in March 2010. In early April, TMT Development halted work on Park Avenue West, a 315,000 sf Class A tower scheduled to open in 2011 with anchor tenant Stoel Rives, because financing dried up. The company plans to take out the top 10 stories of condominiums from the plans and is targeting to begin construction again in early 2010. We are continuing to see tenants interested in moving to the urban core from the suburbs – for instance, SAIF moved into 34,000 sf at Crown Plaza at 1500 SW First Ave in April. Tenants are also often seeking to renew leases rather than relocate, and ADP announced that it would stay in 115,180 sf at ADP Plaza for seven more years.

Suburban office vacancy increased nearly two percentage points to 19.06%, with negative absorption of 183,415 sf. Southern 217 vacancy increased almost four percentage points to 25.12%, with considerable space available at Triangle Corporate Park – Building 3 with the departure of EthicsPoint. Part of the increase in Southern 217 and the Sunset Corridor area may be attributed to the failure of financial firms – many are or were located in these areas. Kruse Way sustained a noteworthy increase in vacancy of almost nine percentage points to 21.08%. Absorption in this submarket was a negative 80,857 sf, largely due to two entire floors available at Kruse Woods V. In general, an increasing amount of sublease space is becoming available, and rental rates are dropping, with landlords working to attract tenants through free rent and other concessions.

Vancouver vacancy increased about one and a half percentage points to 17.71% with negative absorption of 81,699 sf, largely in small spaces. Vancouvercenter gained a few smaller tenants, including Purple Language Services and Advantel. Tenants are increasingly interested in renewals and are seeking renewals well before their current leases expire to take advantage of the current market conditions.

The full report is available on our Web site.

VBJ Article Provides Commercial Real Estate Update for Clark County

2009-06-30T15:34:00.000-07:00

The Vancouver Business Journal ran a story Friday exploring the present state of the commercial real estate market in Clark County. The article suggested that lease rates are decreasing and vacancy is going up, but that there are some positives. For instance, retail vacancy has increased, but it could have gone up quite a bit more. NAI NBS' Pam Lindloff, a retail specialist, and Garret Harper, who focuses on industrial leasing and sales, were interviewed for the article. You can find it here.

NAI NBS tracks vacancy and construction in Clark County for office, retail, industrial and multifamily properties. Our Second Quarter 2009 reports will be posted on this blog and on our Web site by mid-July.

Building Ownership Isn't Always the Best Option

2009-06-22T11:56:00.000-07:00

Flexibility and professional property management are among advantages for tenants in business parks

Ken Boyko, Vice President, NAI NBS

Firms seeking industrial space have many options, and one is to buy a building. But tight budgets and financing difficulties may prevent companies from owning their own space.

One viable alternative for companies is to lease space in a business park. Spaces in business parks can suit firms of any size, and they come with some major advantages.

In general, leasing space can be more financially advantageous than owning. One major benefit is less required capital investment, since a tenant’s only significant investment in the property is generally a security deposit. The tenant also has less debt service, which frees up capital to invest in other aspects of the business, such as personnel, equipment or inventories.

Tenants also don’t need to be concerned about transaction costs or risk in a changing market. Some companies that purchased facilities when the market was good would like to sell them now, but selling a building in today’s economic environment can be a real challenge; it also comes with added costs.

Business parks have some additional benefits. One is the flexibility to expand and contract, often without many complications. If tenants are doing well and wish to add space, landlords often will let them to do so. Landlords also may allow tenants that are downsizing to reduce their square footage. This flexibility can take away the stress and costs of having to relocate and sign a completely new lease.

Bigger landlords with national reach, like ProLogis and Opus, often own a number of business parks. This can make it more convenient for tenants desiring to move. A tenant seeking to move to a different business park in the same city may be able to rent from the same landlord. And if a tenant wants to open up a facility in a different city where the landlord has properties, the firm has a contact for space in the market it is moving into.

Another perk of business parks is professional property management. Property managers take care of many of the day-to-day needs of commercial space, including maintenance, landscaping, and cleaning. A property manager is a major asset in a business park because the manager handles many aspects of the facility that would otherwise require time and energy that a tenant may not possess.

Business parks also realize economies of scale. Business parks come in many different sizes, but, in general, the greater the square footage in a facility, the less expensive it is to maintain. That can mean lower rates for tenants. Also, many business parks were built in the past 25 to 50 years, so they are up-to-date and include modern elements such as green features.

A diverse mix of tenants is drawn to business parks. Tenants with complementary businesses may gravitate toward similar types of space, allowing them to do business with each other. Tenants of business parks can make connections and develop relationships with other businesses all under the same roof.

Portland is fortunate to have many attractive business parks located in all corners of the metro area, so local industrial tenants have a wide variety of choices. The Portland metro area has nearly 7 million square feet of industrial space in business parks, according to NAI Norris, Beggs & Simpson’s First Quarter 2009 market report, and a significant portion of the 11 million square feet of flex space in Portland that NAI NBS tracks is also in business parks.

One example of a successful local business park is Parkside Business Center, which is managed by RREEF and leased by NAI Norris, Beggs & Simpson. Built in 1981, Parkside has about 630,000 square feet of flex space on 52 acres. It’s in a convenient Beaverton location, just off of Highway 217 between Interstate 5 and Highway 26, near Washington Square. Many types of tenants have found Parkside Business Center to their liking.

Some businesses do need their own buildings; heavy manufacturing firms, for instance, do not lend themselves as well to business parks. But for many companies, a business park is an attractive and affordable choice to call home.

Honzel Joins NAI NBS Retail Team

2009-06-18T09:52:00.000-07:00

NAI Norris, Beggs & Simpson has added Real Estate Broker Tyler Honzel to its retail brokerage team.

Before joining NAI NBS, Tyler specialized in investments at CB Richard Ellis in Portland. Prior to that, he was a Major Accounts Manager at Verizon Wireless, where he maintained existing accounts and generated new business.

Tyler has also worked in inventory at Nordstrom and JC Penney, ordering product for both companies’ catalogs and working on Internet ordering. In this capacity he gained a comprehensive understanding of the inner workings of the retail industry.

Tyler holds a degree in business marketing from the University of Portland. He is a licensed real estate broker in Oregon.

With the addition of Tyler, NAI NBS' retail team has five members who cover all of the Portland metropolitan area, including two brokers who specialize in retail in Vancouver and Clark County. For more information on Tyler and the rest of our team, visit our Web site's retail page.

Qualman Featured in Article on Vancouver's Proposed Padden Parkway Business Park

2009-06-16T13:19:00.000-07:00

NAI Norris, Beggs & Simpson Executive Vice President Roger Qualman, who runs the Vancouver office, was featured today in a Columbian article about Padden Parkway Business Park, a 276,000 sf proposed business park in Vancouver, on the southwest corner of St. Johns Road and Northeast 78th Street. The property's developer is having trouble attaining financing, so he is asking potential tenants to secure low-risk loans through the federal Small Business Administration and buy their own buildings. The business park would serve office, retail and light industrial tenants. You can find the article here.

NAI NBS Ranks Second on PBJ's Top 25 Commercial Property Management Firms List

2009-06-08T14:45:00.000-07:00

NAI Norris, Beggs & Simpson ranked second on the Portland Business Journal's list of the Top 25 Commercial Property Management Firms, based on total metro square footage managed. The list was published in the Friday, June 5, edition. NAI NBS' 15 property managers in the Portland metropolitan area manage 7,125,814 square feet of commercial space, including office, industrial, flex, retail, and land.

Oregon, Washington May Lead Nation Out Of Recession, Moody's Predicts

2009-06-04T09:55:00.000-07:00

Oregon and Washington are two of the states that will lead the nation out of the recession, according to Moody's Economy.com. The others are fellow western states Idaho, Colorado and Texas.

Moody's said that job growth in these five states should start to rebound first, likely in the fourth quarter of this year.

The large number of high-tech companies in Oregon and Washington will benefit when tech spending picks up again, Moody's predicted, and home sales in these states will be stimulated by lower prices and good mortgage rates.

You can find The Oregonian's coverage here.

NAI NBS' Fuller, Bartocci Represent Landlord in 9K SF Lease at 200 Grand, Vancouver

2009-05-26T10:40:00.000-07:00

International Air Academy (IAA) has leased 9,026 sf at 200 Grand Avenue and will move into the space June 1. NAI Norris, Beggs & Simpson Vice President Tamara Fuller and Senior Salesperson Doug Bartocci represented the landlord, JH Kelly LLC.

“200 Grand offers an excellent location for International Air Academy, given the easy access to and from Hwy 14 and the retail amenities adjacent to this site,” Fuller said.

The overall 200 Grand site comprises approximately 5.4 acres and is immediately adjacent to the popular Grand Central retail development off of Highway 14. JH Kelly LLC is collaborating with Grand Central developer Killian Pacific on the commercial and potential retail development of the remaining 200 Grand acreage.

200 Grand, which was built in 1996, also currently houses Westmar (now Worley Parsons) Engineering and Occuscreen LLC. Upon occupancy by IAA, the building will have about 5,000 sf available.

Precise Buys Vancouver Industrial Building for $4.225M

2009-05-13T13:52:00.000-07:00

Precise, a local precision grinding company with about 20 employees, has purchased the 64,400 sf industrial building at 5600 NE 121st Ave. for $4.225 million.

NAI Norris, Beggs & Simpson Senior Salesperson Garret Harper represented the buyer. The seller was Elixir Industries Inc., based in California, which manufactures aluminum extrusions and other metal fabrications.

Though the building was never on the market, Elixir was planning on closing its Vancouver facility, and Precise owner Rick Jones was looking for some expansion space. Precise will move to the building in May and use the majority of the space, while subleasing out roughly 25,000 sf.

5600 NE 121st, which is in the Orchards area, was built in the mid-‘90s and is a larger building for the Vancouver market, Harper said.

"It is great to see a local company making a significant investment and believing in its long-term growth here in Clark County," Harper said.

NAI NBS' Clouser Earns CCIM Designation

2009-04-27T10:38:00.000-07:00

NAI Norris, Beggs & Simpson Vice President Monique Clouser, a property manager, has obtained her Certified Commercial Investment Member (CCIM) designation.

To attain the CCIM designation, Clouser completed four core courses and three elective credits, prepared her management portfolio and passed a comprehensive exam.

A CCIM is an invaluable resource to the commercial real estate owner, investor, and user, and is among an elite group of more than 9,000 professionals across North America and in 30 countries abroad. Only 6% of the estimated 150,000 commercial real estate practitioners nationwide hold the CCIM designation, an indication of one of the most coveted and respected designations in the industry.

Clouser joined NAI NBS in 1996 and has managed more than two million square feet of office and retail space in her career to date. Management highlights include Lincoln Center, with seven Class A office buildings totaling 731,391 sf, 5800 and 6000 Meadows, which she managed from construction to operation, and One and Three Centerpointe, two office buildings totaling 190,335 sf in the Kruse Way submarket.

Clouser is a Certified Property Manager (CPM), a licensed broker in Oregon and Washington, and holds a business degree from Linfield College.

NAI NBS' Lindloff and Fuller Represent Landlord in Lease at Sunrise Professional Plaza

2009-04-23T10:26:00.000-07:00

St. Elizabeth Ann Seaton Catholic High School has leased 13,938 sf at Sunrise Professional Plaza in Vancouver. NAI Norris, Beggs & Simpson Vice President Tamara Fuller and Associate Vice President Pam Lindloff represented the lessor, Sunrise Medical Plaza LLC.

The tenant is expected to move in on August 1.

On Earth Day, BOMA Gives Tips for Greening Buildings

2009-04-22T11:24:00.000-07:00

BOMA (Building Owners and Managers Association) International has released a list that is very fitting for Earth Day: "100 Days, 100 Ways" gives tips for commercial real estate professionals to make buildings more environmentally friendly. You can find a link to the list here. The list includes tips like installing bicycle racks so workers can ride to work, starting an energy awareness program, instituting or increasing recycling programs, and cutting down on water use.

Slater Joins NAI NBS' Vancouver Office as Property Manager

2009-04-20T10:18:00.000-07:00

NAI Norris, Beggs & Simpson has added Brandon Slater to its Vancouver office as a Property Manager.

Prior to joining NAI NBS, Brandon was a Senior Consultant with Spectrum Real Estate Advisors, a boutique commercial real estate consulting firm in Portland. There he advised on commercial real estate portfolios of varying sizes, created and audited operating budgets, reviewed leases and rent rolls and performed building inspections. Prior to Spectrum, Brandon spent five years with CB Richard Ellis in Las Vegas, where he advised clients on office, retail and industrial projects and brokered over $200 million in sales. He was a founding member of the CBRE National Land Group, a nationwide coalition of land acquisition and disposition specialists, and served as a board member for two years.

Brandon holds a bachelor’s degree in business management and finance from Brigham Young University – Idaho, is a licensed broker in the state of Oregon, and is fluent in Spanish.

Creativity, Flexibility Key to Selling Industrial Properties Today

2009-04-16T09:05:00.000-07:00

Scott MacLean, Vice President, NAI NBS

Many brokers who specialize in investment sales have not put any sales in escrow recently, and most institutional buyers have headed for the hills. So, what does it take to sell property in these tough economic times? Sellers need to remember two words: creativity and flexibility.

Buyers are out there. But to consummate a transaction, brokers must use all of the tools in their arsenals. Brokers also need to look at industries that are more recession-resistant. Brokers have applied these techniques in the last six months to successfully sell buildings in the Portland area that had previously languished on the market with little or no activity.

Leasing with a fixed option purchase price allows buyers to “try before they buy.” Oftentimes, lessees/buyers are able to negotiate fixed purchase options with a specific timeline in which to purchase the building. This strategy allows a potential buyer to move into a building and get situated before having to spend the money to purchase the building. The buyer has flexibility to purchase the building on his or her timeline, which can allow a buyer to shop around bank terms without the pressure of a short due-diligence period looming. This strategy also creates immediate cash flow for the seller, and can allow a seller more time to work on a 1031 exchange.

A recent win-win was at 425 N.E. Ninth Ave. The property had been on the market for quite a while. The lessee/buyer got the flexibility of being in the building, and using capital for improvements rather than the purchase price. The company has also been able to lease some of the extra space in the building.

The contract sale, a tried-and-true method used successfully by brokers during the 1980s, allows buyers to purchase a building without the hurdle of bank financing. In some instances, sellers are able to realize a higher purchase price if they are flexible on the interest rates or down payment. This can allow buyers with less than stellar credit to purchase a building and can significantly reduce the due-diligence period, expediting the entire transaction. Contract sales aren’t an option for all commercial buildings, but in certain situations they can be very successful.

Another strategy for large buildings that do not have much functional ease is to divide them into two or more sections that appeal more to owners/users. Not every user of industrial space needs a 100,000-square-foot building, just as not every homeowner desires a six-bedroom, four-bathroom house. The “sweet spot” in the residential market is a three-bedroom, two-bathroom house. Commercially, industrial buildings that cater more to users of smaller spaces can be very desirable. Again, splitting a building is not always possible, but it is one strategy a broker can use.

One recent example of this “condominiumizing” is Yeon Business Center Building 9. The building had been on the market for a year when it was split last fall to make it more marketable, and two different owners/users purchased the halves. The buyers were happy to find smaller spaces in the desirable Northwest Portland neighborhood, which is dominated by larger buildings. The sellers were able to sell the building quickly after it was split, and got a higher price per square foot than is typical of small buildings.

A reverse on the aforementioned strategies is the sale-leaseback, in which a business owner is able to raise capital for his or her business by agreeing to a fixed lease rate on the building and then selling that property to an investor. The sale-leaseback scenario is oftentimes more attractive than trying to raise capital in the more traditional ways of financing with a bank, etc.

Buyers are having difficulty obtaining financing today, and some sources that aren’t utilized as much in better economic times are becoming good resources. Buyers are turning more and more to Small Business Administration (SBA) financing to help reduce their down payments. While the SBA loan can be paperwork intensive, it does allow a buyer to purchase a building with only 10 percent down, making the dream of building-ownership available to more businesses. More businesses are also utilizing grants available through the Portland Development Commission.

Now is the time for real estate brokers and sellers to work together and look at all possibilities available in the marketplace. The seller that is waiting for “the perfect buyer,” who will offer the asking price with a short closing period, is a thing of a past – at least for the foreseeable future. These days, brokers will be tested on their creativity and sellers will be tested on their flexibility.

NAI Global Ranked #4 Commercial Real Estate Brokerage Worldwide

2009-04-15T14:09:00.000-07:00

NAI Global tied for the #4 spot in the Top 25 Brokerages 2009 in the April issue of National Real Estate Investor. The rankings were based on the total dollar value of leasing transactions and investment sales globally in 2008, and can be found here.

NAI Global closed $42 billion in leasing and sales last year, tying with Colliers International. NAI Global manages a network of 5,000 professionals and 325 offices in 55 countries throughout the world.

NAI NBS Offers Accelerated Marketing Program to Help Property Owners and Financial Institutions Dispose of Troubled Real Estate Assets

2009-04-14T15:23:00.000-07:00

NAI Norris, Beggs & Simpson is participating in the Commercial Property PowerSale™, an Accelerated Marketing Program created by NAI Global to help property owners and financial institutions dispose of troubled real estate needs. More than 50 properties, valued in excess of $150 million and located in states, will be auctioned off during the first Commercial Property PowerSale™ on May 1.

The Commercial Property PowerSale™ employs a variety of accelerated marketing techniques that have proven effective in previous economic cycles when traditional sales channels are gridlocked. Property owners will have the option of offering their property for sale via a series of live online auctions, sealed bids or a unique combination of the two formats. Properties in the Commercial Property PowerSale™ benefit from an aggressive marketing campaign that includes focused print, broadcast and electronic advertising, and a direct-to-buyer outreach to more than 175,000 active buyers. Sellers are assured a shortened sales process and a date certain sale schedule. The three program options – Auction Marketing, Sealed-Bid and Sealed-Bid Plus™ – set up a competitive bidding environment that creates urgency, forcing buyers to act immediately.

The program is open to both private and institutional owners and will include the sale of both commercial real estate equity and loans. Sellers can submit an individual asset or an entire portfolio, and property types will include everything from office, industrial, retail, hospitality and multifamily properties, to residential subdivisions and land for development. Both performing and non-performing commercial real estate loans may also be offered for sale. The NAI team will evaluate each property and guide the seller through the program process, helping them to choose the sales vehicle that best suits their needs.

Find more information about the Commercial Property PowerSale™ here.

NAI NBS First Quarter Economic Report

2009-04-08T14:27:00.000-07:00

National Highlights

President Barack Obama took immediate economic policy action after his inauguration in January. A $787 billion stimulus package, passed in mid-February, includes tax cuts for most Americans, increased unemployment benefits, and funds for infrastructure projects, education and health care. In addition, a $75 billion mortgage assistance program aims to help up to 9 million Americans refinance their homes or avoid foreclosure.

The government is also taking steps to mend the nation’s financial system. Treasury Secretary Timothy F. Geithner revealed some details of a financial system reform, which would provide the government with more power to intervene in non-bank financial institutions. The major stock markets gained 500 points with the news of this plan on March 23, whereas in late February and early March the markets had fallen to lows not seen since 1997.

National unemployment numbers continued to be discouraging. Unemployment rose to 8.1% in February, the highest it’s been since 1983. Major employers across many sectors, from Nissan to Caterpillar to Home Depot to Sprint Nextel, slashed thousands of jobs.

But after months of disheartening news, a few economic indicators showed positive signs this quarter. Sales of existing homes grew 5.1% in February, according to the National Association of Realtors, and 30-year mortgage rates have fallen to 4.85%, the lowest level since 1971. Orders for durable goods also increased 3.4% in February, according to the Commerce Department, which was better than expected. And consumer spending rose 1% in January and .2% in February after months of considerable declines.

Local Highlights

State unemployment rose to 10.8% in February, with 9.6% unemployment in the Portland Metropolitan Area. Two major Portland-area employers, Oregon Health & Science University and Intel, each laid off up to 1,000 people this quarter. However, Intel announced that it will invest $1.5 billion at Intel Oregon during 2009-2010. Oregon will also benefit from stimulus measures. Go Oregon!, a state stimulus package, will provide $175 million for infrastructure projects, and federal stimulus funds include $76 million for public transportation and $334 million for road and bridge repairs.

Portland’s bid for a Major League Soccer team was the talk of the town this quarter. The Timbers gained approval to move up to the majors in 2011 with the franchise fee paid by owner Merritt Paulson. If funding can be acquired, the Timbers will play at an upgraded PGE Park, and the minor league Beavers baseball team will move to a new stadium in the Rose Quarter. City leaders and stakeholders are also working on renewing the Rose Quarter and surrounding area as a year-round destination for entertainment and dining, not just sporting events.

Multifamily Market Still Healthy, But Product Sales Down

2009-04-07T16:58:00.000-07:00

Overview

Multifamily vacancy crept up a bit to 4.96% in the First Quarter 2009. For comparison, the overall vacancy rate a year ago was 3.80%. The Clackamas/Oregon City/Milwaukie submarket had the highest vacancy at 6.00%, nearly two percentage points up from last quarter. Vancouver’s vacancy decreased more than a percentage point, however, to 4.81%. Southwest Portland had the lowest vacancy at 4.28%.

Average rental rates in all apartment types rose slightly, between $2 and $5, during First Quarter. The Downtown Portland and Wilsonville submarkets saw significant price increases in certain apartment types. The price of a 2 BR/2 BA unit downtown increased by $26 to $1,800, and a 3 BR/2 BA in Wilsonville rose by $18 to $868. The overall average to rent an apartment in Vancouver was $679, the lowest of all submarkets.

Market Trends

The current economic stress is evident in the multifamily market. Vacancy rates are increasing in suburban markets, including Vancouver and free rent incentives are now common, driving down effective rental rates. We expect to see this trend for the balance of 2009.

Many experts today view multifamily as the most stable product type and the one least affected by the uncertainties in this downturn, though the uncertainty has affected sales activity. Product sales were down dramatically in 2008, and we expect this to continue throughout 2009. It’s difficult to determine where values will settle, but going forward, they will be determined based more on tried and true methods like cash-oncash returns, driven by real numbers and interest rates, rather than specific pro forma models. Cap rates will be calculated more conservatively with much more scrutiny on underwriting, in-place income, historic performance, cost of capital and market stability.

The federal stimulus package got off to a bit of a bumpy start and its impact is still unknown, but it is encouraging to see economic stimulus action being taken, and investors may have some reason to be optimistic. Smaller, local banks will benefit from the stimulus, allowing them to clear the overhang of single family development inventory by extending lower interest rate loans. Low mortgage rates, along with the $8,000 tax credit for first-time home buyers, are stimulating the balance of the single family market and sales are picking up for homes under $350,000. On the multifamily side, Fannie Mae still has the lowest rates, but these rates come with more scrutiny on the borrower and property.

The full report is available on our Web site.

Vacancy Increases in Tough Retail Market, But Retailers Adapting

2009-04-07T16:17:00.000-07:00

Overview

Vacancy in the Portland Metropolitan Area retail market increased during First Quarter to an overall 6.5%, with a negative absorption of 264,390 sf. Every submarket except two showed increases in vacancy of at least half a percentage point. Central City stayed relatively stable from last quarter at 8.2%, with a few thousand feet of negative absorption and considerable movement in small spaces.

The Eastside retail market was 5.6% vacant with a negative 40,226 absorption, largely due to Circuit City closing its 42,555 sf store at the Jantzen Beach Supercenter. Southwest Retail had the highest negative absorption at 82,341, with substantial space available at Canyon Place Shopping Center in Beaverton and Washington Green Shopping Center in Tigard near Washington Square. Vancouver vacancy increased more than a percentage point to 7.9%, with considerable negative absorption in spaces under 10,000 sf.

Noteworthy News

National retail sales last quarter were better than expected, with a 1.8% gain in January and only a 0.1% drop in February. Though these numbers were an improvement over months of declines, they don’t necessarily signal a turnaround, and many retailers are taking serious measures to cut costs. One trend is tenants, including large, national chains, renegotiating leases. Pier 1 has begun talks with landlords to reduce rents and says it will close up to 80 stores if it can’t cut enough costs, while retailers like Gap and Finish Line are attempting to cut down on store square footage.

Retailers around the country are using creative strategies to adapt to the new retailing environment. Promotions and special sales can reel in frugal consumers, and one restaurant in the area is going a step further than traditional sales or specials. The Blue Sage Café, with locations in Lake Oswego and West Linn, ran a special promotion for a few weeks (which may be extended) that allows restaurant-goers to choose how much they want to pay for an entrée.

Another tactic is to cut back hours or days of operations. Westfield Vancouver Shopping Center, for instance, is opening half an hour later and closing half an hour earlier on weekdays. Kitchen Kaboodle, locally owned with five locations in the metro area, is completely closing its stores three days a week.

Bankruptcy filings have become more common in this recession, and local retailers aren’t immune. Joe’s Sports & Outdoor, previously G.I. Joe’s and based in Wilsonville, filed for Chapter 11 bankruptcy in early March and explored its reorganization options, including seeking a buyer for the company.

The full report is available on our Web site.