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

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.

NBS Financial's Wood Arranges $18.9M for Amberglen Office Properties

NBS Financial Services Executive Vice President Mike Wood, of the company’s Seattle office, has arranged $18.9 million in financing for the acquisition of a seven-building portfolio at Amberglen Business Center in Beaverton, Oregon.

Wood represented the lender, Symetra Life Insurance Company. Rob Meister, a Vice President at Grandbridge Real Estate Capital in Milwaukee, Wisconsin, represented the buyer.

Arranging loans for multi-asset portfolios is especially challenging, Wood said. Overall, the Amberglen portfolio comprised seven buildings that measure more than 350,000 sf. The loan had a very short closing period, from signed application on Nov. 4 to funding Dec. 11. It had other unique aspects, including a 70% loan to purchase price, and some flexibility with regard to prepayment penalty and release provisions.

“While the short closing timeline presented a challenge, Symetra and NBS were able to meet the borrower’s funding date, due in part to having a very motivated borrower as well as a motivated lender,” Wood said. “The lender was also able to see the inherent value in the portfolio, which got them comfortable with lending at that 70% loan to purchase price, whereas most loans these days are at a 65% LTV or below.”

NBS Companies Named one of Top Donors to Arts and Culture

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.