Kruse Way loses its luster

Kruse Way loses its luster

Kruse Way was once among the most attractive commercial real-estate spots, with an ideal location and 2.3 million square feet of Class A office space.

But now many hard-hit businesses are leaving Kruse Way for locations with more affordable spaces, including downtown Portland.

According to Patricia Raicht, vice president at Grubb & Ellis, Kruse Way’s vacancy rate for the fourth quarter of 2009 was 21.1%, one of the highest in the Portland-metro area. And when numbers for the first quarter of 2010 are released later this month, she doesn’t expect them to be much different.

“Kruse Way had been our bulletproof submarket for many years,” Raicht said. “But the financial services, mortgage and other firms that clustered there were hit hard by this slowdown, and they closed, consolidated or reduced their space.”

Read the full story at the Daily Journal of Commerce.

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