NAI NBS Earns CoStar Power Broker Awards

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

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!

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.