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

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

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.

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

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

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

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.