Home Back Issues May 2009 Portland's downtown downturn

Portland's downtown downturn

| Print |  Email
Archives - May 2009
Friday, May 01, 2009

ATSDowntownLease

Portland’s downtown has been losing key stores.

PORTLAND It was the 25th anniversary of Pioneer Courthouse Square. The early April weather was brilliant, the cake was free, and the center was humming with visitors and workers soaking up sun and ambience. Shoppers were filing into the Nordstrom store across the street. The line inside Starbucks ran 10 people deep. One block away, the sidewalk tables in front of Elephants Deli were packed with people enjoying the gritty construction of the coming Park Avenue West skyscraper.

But the for-lease signs are creeping. Among the recent casualties in the heart of Portland are See’s Candies on SW Morrison, the City Arts shop on SW Yamhill, the Shoe Pavilion on SW Fourth, the Three Lions Bakery on SW Sixth, and Portland Cutlery Co., which sold knives on SW Broadway for more than a century. Add to that list the disconcerting recent news that Zell Bros. Jewelers, an upscale shopping destination since 1912 and the presumed anchor tenant of the remodeled Pacific First Center, is unlikely to survive the downturn, and you’ve got a problem. Especially when you factor in the construction delay at Park Avenue West.

According to a recent report by Norris, Beggs & Simpson, the overall retail vacancy rate for metropolitan Portland is a relatively strong 6.5%. But the central city, one of seven submarkets within greater Portland, has the highest vacancy rate at 8.2%. For all of Portland’s self-congratulatory claims of having defeated the sprawl beast, 2008 retail sales at suburban Washington Square topped those in all of downtown by $180 million.

These downward trends lend new urgency to an effort by 30 business leaders selected by Mayor Sam Adams to hone a downtown retail strategy based on success stories from Pasadena, Calif., Vancouver, B.C., and Boston. David Leland, a Portland-based retail strategist who has been in the business for more than 40 years, recommends recruiting urban versions of big-box stores such as Target, improving the atmosphere along SW 10th, encouraging still more residential density, turning Broadway into a two-way street, providing more street parking and creating new financing options.

Leland has consulted with more than 80 city governments about their downtowns over his career, and he remains optimistic about Portland’s position. But he predicts more stores will close before the next wave of grand openings, and he warns, “Complacency is a great danger."

BEN JACKLET
 

More Articles

Launch

October 2014
Thursday, September 25, 2014
BY JESSICA RIDGWAY

October's Launch article features Soul Kitchen, Easy Company and Slick's Big Time BBQ.


Read more...

College Conundrum

October 2014
Thursday, September 25, 2014
BY KIM MOORE

University and college tuition fees have been rising for more than a decade, while state funds for higher education have steadily declined.


Read more...

A Recipe for Success

October 2014
Thursday, September 25, 2014
BY LINDA BAKER

Two businesswomen, two iconic food brands and one food-obsessed city. We thought this sounded like a recipe for good conversation. So in late August, Oregon Business sat down with Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, to discuss their rapidly expanding businesses and Oregon’s trendsetting food scene.


Read more...

Semiconductor purgatory

News
Monday, October 06, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Intel's manufacturing way station; Merkley's attack dog; Diamond Foods gets into the innovation business.


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...

Gone Fishing

October 2014
Thursday, September 25, 2014
BY LORI TOBIAS

Business has been good to Laura Anderson, leading some to suggest she must be awfully lucky to find such success in a business notorious for failure. But luck’s had little to do with it.


Read more...

The short list: 5 companies making a mint off kale

The Latest
Thursday, November 20, 2014
kale-thumbnailBY OB STAFF

Farmers, grocery stores and food processors cash in on kale.


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