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.

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.

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.

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.

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.

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.

Retail Vacancy Flat in Second Quarter, Some Large Leases Signed

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.

Unger Earns Certified Leasing Specialist (CLS) Designation

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

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.

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

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.”

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

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.

NAI NBS Earns CoStar Power Broker Awards for Performance in 2009

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.

John's Incredible Pizza Coming to Portland

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.

NAI Global's Global Market Report Details Challenging 2009

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.

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

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

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.

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

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.

NAI NBS Releases Third Quarter Reports

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.