Commercial real estate hits lows

| Print |  Email
Archives - February 2009
Sunday, February 01, 2009

STATEWIDE — Commercial real estate markets nationwide and in Oregon will bottom out this year, and not see a meaningful recovery until 2010, according to a joint report by PricewaterhouseCoopers and the Urban Land Institute.

Oregon’s commercial real estate market is frozen, paralyzed by cautious lenders and investors holding on to their assets waiting for real estate prices to continue falling. Grubb & Ellis, one of Portland’s largest real estate services and investment firms, estimates that commercial sales volume in Oregon fell to $1.7 billion in 2008, down from over $2 billion in 2007.

“Investments across the board have come to a screeching halt,” says Patricia Raicht, VP Client Services Manager for Grubb & Ellis. “There is no money to buy anything.”

This scares investors and brokers alike, who see the freeze in the credit market as particularly worrisome given the amount of commercial real estate debt that exists on the market.

The $700 billion bank bailout will do little to ease the credit crisis until banks begin to invest money back into the market, says Christine Kosydar, a partner at Stoel Rives, which specializes in business finance and real estate law. Banks are sitting on their money, waiting to purchase discounted portfolios to offset past losses, she says. Until then “they won’t be making any loans. They won’t be refinancing much at all.”

Vacancy rates for office, industrial and multifamily rose in the fourth quarter of 2008. Industrial and multifamily vacancy rates rose to 12.11% and 4.1% respectively. Portland’s central city office vacancy rates rose slightly to 9.25%, while suburban office vacancy rates rose to 16.17%.

Retail vacancy held steady at 5.8%, although industry experts predict this number will continue to rise in 2009 as heightened profits from holiday sales give way to post-holiday sales drop-offs.

NICOLE STORMBERG



Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

More Articles

The 100 Best Companies survey is open

News
Friday, October 24, 2014

100-best-logo-2015 500pxw-1How does your workplace stack up against competitors? How can you improve workplace practices to help recruit and retain employees? Find out by taking our 100 Best Companies to Work for in Oregon survey!


Read more...

Corner Office: Pam Edstrom

January-Powerbook 2015
Saturday, December 13, 2014

Seven tidbits of information from an agency partner and co-founder of Waggener Edstrom in Lake Oswego.


Read more...

Corner Office: Timothy Mitchell

January-Powerbook 2015
Saturday, December 13, 2014

A look-in on the life of Norris & Stevens' president.


Read more...

Powerbook Perspective

January-Powerbook 2015
Friday, December 12, 2014
BY LINDA BAKER

A conversation with Oregon state economist Josh Lehner.


Read more...

The short list: Holiday habits of six Oregon CEOs

The Latest
Thursday, December 11, 2014
121214-xmaslist1BY JACOB PALMER | OB DIGITAL NEWS EDITOR

We ask business and nonprofit leaders how they survive the season.


Read more...

Corner Office: Sheree Arntson

January-Powerbook 2015
Saturday, December 13, 2014

Checking in with the managing director of Arnerich Massena.


Read more...

Reimagining education to solve Oregon's student debt and underemployment problems

News
Thursday, November 13, 2014
carsonstudentdept-thumbBY RYAN CARSON | OP-ED CONTRIBUTOR

How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.


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