Home Back Issues May 2012 Tenant trade

Tenant trade

| Print |  Email
Articles - May 2012
Monday, April 23, 2012
Article Index
Tenant trade
Page 2
Page 3
VACANT BIG-BOX SPACE IN PORTLAND
2009: More than 1.8 million square feet
2011: 541,296 (much of which is under negotiation)
0512_Dispatches_Retail_03
With some national retailers back in expansion mode — and redeveloping existing real estate rather than investing in new construction — most of the state’s retail centers have hit bottom and are climbing back up to normal, brokers say.

Yet while luxury properties once again have their pick of retailers, Class B and C establishments, whose locations and existing tenant mixes may be less than ideal, are still struggling to fill the empties.

Even so, many people in the commercial real estate industry are wary of nontraditional tenants. Because patrons of places like fitness centers and doctors’ offices tend to come and go (and take up parking spaces in the meantime) without stopping to shop, anchor store contracts often prohibit owners from leasing to non-retail tenants.

“It’s a slippery slope,” says Suzanne Mulvee, a national retail expert with the commercial real estate information company CoStar Group. “Once you bring in a lesser-quality tenant, the overall quality of the center can continue to deteriorate.”

CenterCal Properties CEO Fred Bruning, who oversees Bridgeport Village in Tigard, does his best to avoid “the progression to mediocrity.” When the Borders at Bridgeport closed last fall, the center resisted offers from a gym, a sporting goods store and several discount retailers and mass merchants.

“We really wanted to hold out for something that would uphold the integrity of the leasing at the center,” Bruning says. The center has lined up a tenant that complements the space well, he says, but it has not yet made the deal public.

Other retail areas can’t afford to be as choosy, though. When the Linens ’n Things near Clackamas Town Center went dark, a Salvation Army moved into the 40,000-square-foot vacancy.

“We had to discount the rent by 10% or 15% from what we were getting before, but it was certainly better than an empty box,” says Mark New, president of New & Neville Real Estate Services. “As long as you’re not trying to put those guys next to your high-end luxury goods, you can create a symbiotic relationship.”



 

More Articles

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

100 Best Green Companies Keynote Speech

News
Friday, May 30, 2014

green2014-069Watch the 2014 100 Best Green Companies keynote speech by Eric Friedenwald-Fishman.


Read more...

Interview: Dr. Mark Goulston

Contributed Blogs
Thursday, July 10, 2014
JustListenBY TOM COX | OB BLOGGER

Tom Cox interviews Dr. Mark Goulston, author of Just Listen, Discover the Secret to Getting Through to Absolutely Anyone.


Read more...

Blips and trends in the housing market

News
Thursday, June 26, 2014
062614 thumb realestateBY ERIC FRUTS | OB BLOGGER

Last year, the housing market in Oregon—and the U.S. as a whole—was blasting off. The Case-Shiller index of home prices ended the year 13% higher than at the beginning of the year. But, was last year a blip, or a trend?


Read more...

Attack of the Robin Sages

Contributed Blogs
Monday, July 07, 2014
070714 thumb linkedinfakesBY TOM COX | OB BLOGGER

Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Driving green

June 2014
Thursday, May 29, 2014
BY KIM MOORE

Transportation accounts for the second-largest source of greenhouse gases in the U.S. (28% in 2012), and the use of renewable fuels, such as biodiesel and ethanol, is booming in light of state and national programs to make transportation fuels cleaner.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS