[Dougall5505]

http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1183235113180910.xml&coll=7

interactive panorama of construction: http://www.oregonlive.com/news/oregonian/multimedia/wide.ssf?pan_graphic

slideshow of construction: http://www.oregonlive.com/business/oregonian/index.ssf

DOWNTOWN IS GROWING UP
The building boom that's produced Portland's bumper crop of high-rises could spread, changing the look of the city skyline as Stumptown sprouts and soars
Sunday, July 01, 2007
So, you think Portland's downtown is almost filled up?

It's easy to believe, seeing a half-dozen or more tower cranes piercing the sky for about a decade. Developers have churned out an average 1.3 million square feet of condos, shops and offices each year since 1990. That's almost equal to two new Wells Fargo Centers -- at 41 floors, the state's tallest building.

A panoramic view of the skyline, photographed from a helicopter, brings the construction boom into a single, vast portrait of the Portland we know today. Take a look -- it won't stay this way for long.
Without so much as a zoning change, developers could double the 103 million square feet that now make up the central city. From the South Waterfront to the River District, from Goose Hollow to the Lloyd District, the city's zoning allows a virtual forest of high-rises. By the city's count, 400 acres of underused property -- think surface parking lots, or beat-up buildings worth less than half the value of the land they occupy -- is ripe for change.

No one knows how long it will take to fill all that land. At the current pace of construction, the doubling would take 75 years. It could take much longer: Downtown has plenty of competitors in the Portland region and worldwide. Or, perhaps the central city will boom beyond anyone's imagination.

Soon, "the city that plans" will launch an update of the central city, with new schemes for shaping the coming high-rise growth to fit the region's goals for urban containment. The present plan, adopted in 1988, opened the way for urban expansion into the Pearl District and South Waterfront. And an earlier 1972 Downtown Plan set out a vision for housing west of the Park Blocks that is only now bearing fruit.

These pages show some major recent and upcoming projects.

Who knows what's next?

-- Dylan Rivera

Downtown The region's traditional center of commerce. 232 acres Existing buildings: 37 million square feet Projected increase: 17 million square feet

ffice: 6.4 million square feet

Retail: 900,000 square feet

Housing: 8,954 units Strengths: The psychological heart of the Portland metro area, downtown has the highest concentration of employment, hotels, mass transit and non-mall retail. West End, Old Town, South Auditorium, Hawthorne and Morrison bridgeheads have buildable sites on cusp of transformation. Central City's best bet for office towers and hotels. Weaknesses: High cost of development and parking. Many existing buildings complicate new construction. Homeless population scares off some employers, residents. Condo market lags Pearl District and South Waterfront. Lloyd District and Lower Albina

A mall, a convention center, two arenas and lots of underused land. Adjacent to Central Eastside Industrial District south of Interstate 84. 328 acres Existing buildings: 17 million square feet Projected increase: 28.4 million square feet

Office: 11 million square feet

Retail: 1.5 million square feet

Housing: 12,740 units Strengths: Lloyd area has zoning for the tallest, densest development outside the downtown core. Generous parking allowances compared with downtown. Great views west and east. Incomparable transit and highway access. Weaknesses: Arena and convention areas sleepy when those attractions are not in use. No neighborhood focal point. Not much built lately; major landowners passed on condo boom. Lower Albina nearly all industrial zoned, with Portland School District headquarters site a tough play. River District The Pearl District and Old Town north of West Burnside. 238 acres Existing buildings: 20.5 million square feet Projected increase: 21.7 million square feet

Office: 4 million square feet

Retail: 1.4 million square feet

Housing: 11,944 units Strengths: The Pearl comprises the region's strongest, most established urban condo market. Retail and restaurants draw from across metro area. North Pearl development sites ready to pop. Old Town section and Post Office hold potential, with complications. Weaknesses: Little employment presence aside from Brewery Blocks. Old Town stigma and historic district restrictions work against potential high-rise housing and offices closer to downtown core. North section still considered risky for offices. South Waterfront The city's newest urban neighborhood. 129 acres Existing buildings: 4.1 million square feet Projected increase: 25 million square feet

Office: 10.8 million square feet

Retail: 1.3 million square feet

Housing: 10,146 units Strengths: Plentiful vacant land with riverfront views. Oregon Health & Science University expansion forecast to last decades. Lush Pearl alternative now a proven high-rise, high-end condo market. Weaknesses: Needs roads, light rail and other infrastructure. A nonstop construction zone for decades to come. Biotech doesn't normally build to SoWa's tall, expensive, dense standard. University District Portland State University and its eastward expansion area. 50 acres Existing buildings: 3.9 million square feet Projected increase: 4.6 million square feet

Office: 1.4 million square feet

Retail: 200,000 square feet

Housing: 2,837 units Strengths: PSU on a growth path, led by student housing. Light rail soon to meet streetcar line. Fourth Avenue stretch developable. Nearby conversion of Portland Center from apartments to condos adds more homeowners to area. Weaknesses: Uncertain state funding for higher education over long term. PSU still an unproven employment draw. Students dominate housing market.

[WestCoast]

I'm a recent transplant to downtown living, and I am happy as can be.

With the Max line coming south, PSU upgrading a bit, and new towers coming, the energy seems palpable to me.

Waiting around for the montgomery blocks to get going, think that could spice up southern downtown nicely in a few years as well.

[PDX City-State]

This article sucked. Sure--the panorama of downtown was nice, but Mr. Rivera didn't bother to mention the Allegro, the Manhattan, the hotel on 6th and Oak, the proposed 19-story Pearl tower next to Tanner Springs, the apartment tower in development across from Living Room Theaters, the possible tower next to the Jeffrey in the West End---and worst of all there were no renderings. Anyone of us could have done a better job.

[PacificNW]

I have always had the same frustrations, PDX....it seems that the Portland news publications (the Portland Business Journal/Oregonian being the biggest offenders)
seldom publish renderings of proposed/actual projects; whereas I see this being done in other city's publications to a "greater" extent.

[Drew-Ski]

I have no confidence in the Oregonian Staff Writers. They can take a blockbuster topic and destroy it with an absence of meaningful and organized content. What a shame.:yuck:

[mhays]

Seattle's papers don't either...

...except the Seattle Daily Journal of Commerce, which I love with all my heart. They don't have big articles and renderings about every project, but they do have little articles at permitting junctures. When a developer sends out a press release the DJC will typically run something prominently. And having every article since 1990 at one's fingertips is a freaking miracle.

Portland has a DJC. I don't subscribe and don't really know how good it is. Our Portland office sends stories my way occasionally.

[PacificNW]

The Portland DJC isn't up to the standards of the Seattle DJC.... Maybe it's more expensive to actually publish renderings.....even the Puget Sound Business Journal does much better than the Portland edition.... if you are the reader who wants updates on Insurance/Medical Insurance, etc. the Portland BJ is your thing... The PDX BJ just had a special publication of Commercial Structures and nary a rendering....

[tworivers]

City-state: the Manhattan does get a mention in the online panorama, but it says it is "on hold", as previously reported here. I have a funny feeling that the Allegro is on hold as well.

So Harsch is considering apartments next to the Belluschi building?

[tworivers]

2007 Central Portland Development Capacity Study

http://www.portlandonline.com/planning/index.cfm?c=38338

[cab]

If the Oregonian had any kind of guts they would of followed up and asked WHY DT didn't build anything during the boom times while the neighborhoods to the North and south did. That would actually take a little bit of digging not something the oregonian does well. I guess why dig when a story about a cat shot with an arrow will boot you off the front page every time.

[gooddirt]

When was downtown Portland's last major office development? Are any planned on the horizon?

[MarkDaMan]

^Fox Tower (2000) and yes...Park Avenue West, First and Main, and possibly 100 Columbia are all in the works as far as office towers anyway.

I've e-mailed the Allegro website with two different e-mails on a few different occasions and haven't got a single reply...

[ATR]

but it sometimes takes a little wrangling between architects and clients (who can be hesitant to release images of projects that aren't fully formed). PDX architectural firms, though, are usually really gracious about use of renderings.


Alison
alison.ryan@djcOregon.com
Portland Daily Journal of Commerce
www.builtpdx.com

[MarkDaMan]

^hey...I know your name...not personally...but you just had a terrific interview with Becca Cavell on the Street of Eames/mid-century architecture recently!

[NorskyGirl]

Similar photos have been posted before on other threads, but on such a beautiful day (albeit a little hazy), I thought this grownup picture of Portland belonged here. The shot was taken from near the top of the aerial tramway. Portland is such a pretty city.

http://i154.photobucket.com/albums/s248/NorskyGirl/Cityfromtram5.jpg

[PacificNW]

Beautiful!

[Dougall5505]

the harrison and the condos close to I-450 are such a eyesore. but its a great picture!

[PacificNW]

I have seen much worse.....They are so-so example's of that particular architectural period...socialist???

[WestCoast]

harrison south is just being painted, and will look a bit better when it is done.

the three towers closest in that shot are the American Plaza building, and good lord do they need paint.

Sure, not the greatest building, but dense and downtown.

[gooddirt]

that view of the city hasn't changed appreciably in 20 years. For all the talk of growing up and densifying, nothing will match the tax-syndication motivated office boom of the 80's

[PDX City-State]

Portland should adopt some measures for downtown job growth--I know quite a few people who live in the Pearl or close-in Eastside, but commute to Hillsboro for work.

Seems an incentive program that removes certain taxes for a fixed period on research and development only would lure in some new jobs. After that period of course, there would be quite a few tax and job generating companies in Portland. Similar strategies have worked for British Columbia and Ireland.

The hottest office market is still Kruse Way. Downtown needs to bite back. Unfortunately, nothing will happen with our current do-nothing mayor.

[cab]

or largest Downtown property owner.

[mhays]

You're missing the biggest part of the story.

Office rents are too low to justify new high-rise construction.

In the past several years, office rents have stayed about the same (for most cities), while construction costs have grown by half. So why would anyone build an office tower? Especially when condo prices have risen to match construction costs?

The exceptions are a few cities where office rents are high enough and there's enough demand. Plus some companies that really want their own buildings and are willing to pay above-market rates.

The "good" (?) news is that office rents can rise just as explosively as condo values. Of course this is spurred in large part by demand. If demand gets really tight, asking rents could rise by 30% in two years, for example, and you'll see plenty of office proposals and projects.

When Portland does get more Downtown office growth, I'd expect you'll get some major towers. You've done a good job filling underused lots, and there just aren't that many lots available. Developers who feel confident that they're one of the only games in town will feel freer to go large.

[360Rich]

The O has posted a short little 'video' (still pics with audio commentary by Dylan Rivera) of current and proposed building downtown.

http://www.oregonlive.com/news/oregonian/multimedia/index.ssf?FN_11PANO101

[MarkDaMan]

You're missing the biggest part of the story.

Office rents are too low to justify new high-rise construction.


actually there was a story recently about Portland's downtown office tower owners making some huge rent increases. My employer, whom leases four floors of space in a downtown tower, had the cost raise by around $5/sq ft in our new ten year contract. That's probably why there are four office towers now under serious development in downtown and the Lloyd.

[PDX City-State]

Plus Downtown Office Vacancy is pretty low these days.

[mhays]

actually there was a story recently about Portland's downtown office tower owners making some huge rent increases. My employer, whom leases four floors of space in a downtown tower, had the cost raise by around $5/sq ft in our new ten year contract. That's probably why there are four office towers now under serious development in downtown and the Lloyd.

I don't remember what Portland's office rents are. But I think even today they're too low. When developers can sign big pre-leases at, say, $35 fully serviced, then they'll build high-rises.

[MarkDaMan]

Actually, the vancancy rate has been extremely healthy for 3 years and going, less than 10% and I believe sitting between 5%-8% currently. The average lease in 2007 is also close to $30/square foot, the trigger point for new office towers in the Portland market. Hence, Park Avenue West (410' ft mixed use), First and Main (200' office), and the Lloyd office tower (250' office), are all scheduled to break ground this year or early next. Plus the resurgence of 100 Columbia across from the KOIN Tower means Portland could have 4 new office towers rising shortly.

[lil yuca x3]

yeah go
Portland :notacrook:

[mhays]

Actually, the vancancy rate has been extremely healthy for 3 years and going, less than 10% and I believe sitting between 5%-8% currently. The average lease in 2007 is also close to $30/square foot, the trigger point for new office towers in the Portland market. Hence, Park Avenue West (410' ft mixed use), First and Main (200' office), and the Lloyd office tower (250' office), are all scheduled to break ground this year or early next. Plus the resurgence of 100 Columbia across from the KOIN Tower means Portland could have 4 new office towers rising shortly.

Trigger points are moving targets, and have generally gone up 15-20% in the past two years. How new is that $30 estimate?

[MarkDaMan]

^dude, what's your beef? There are four announced projects in Portland, 200,000 sq/ft of space u/c in the Pearl, and the average is about $30, which means that a good portion of the tenants are paying more than $30/sq ft in buildings that are at least a decade old, being that the Fox is the newest CBD office tower. So, a new building with all the new features would easily be able to charge $35 or more a sq/ft justifying constructing space that wont be available for over 18 months. Hence over a million square feet either in the late planning stages or under construction in Portland's downtown, including the side districts.

[tworivers]

I don't think he has a beef, really. It's just pretty obvious that Portland's office market is relatively diminutive, and the cost of construction is astronomical. Even with the low vacancy rates and supposed desire for new class-A space, only Park Avenue seems to be to be on the fast track. Neither of the other two buildings are a sure bet yet, neither have pre-leased tenants, and they're the boxy, stubby things that PDX seems to specialize in.

As Gooddirt wrote about the dt picture Norskygirl posted, "that view of the city hasn't changed appreciably in 20 years." It's just a different-sized market (probably for the better imo) than, say, Seattle, where I think mhays is writing from, and where the skyline has changed appreciably over the last few years alone. We're looking at a span of nearly TEN years between office towers.

I just wish we could get Park Ave West-quality architecture every time we get a new building. And I wish OWP was more in the pipeline than it seems to be. Honestly, that's almost all that I care about: good design that relates well to its environment and adds to a vibrant streetscape.

[tworivers]

Oh yeah: forgot about the Lloyd tower, but I'll believe it when I see it u/c.

[mhays]

^dude, what's your beef? There are four announced projects in Portland, 200,000 sq/ft of space u/c in the Pearl, and the average is about $30, which means that a good portion of the tenants are paying more than $30/sq ft in buildings that are at least a decade old, being that the Fox is the newest CBD office tower. So, a new building with all the new features would easily be able to charge $35 or more a sq/ft justifying constructing space that wont be available for over 18 months. Hence over a million square feet either in the late planning stages or under construction in Portland's downtown, including the side districts.

Beef? Where is this beef? I love Portland and root for it. My company builds buildings there so it even theoretically helps my pocketbook. I have family and friends there.

But project announcements are totally separate from signed leases. Everything posted suggests that developers are gearing up for a large-scale buildable market, but this thread doesn't show evidence that rates are high enough yet, and I haven't heard about any big Downtown leases that would kick-start projects. When we hear those things, we'll know the buildable market has begun and that something will probably (probably) get built.

[MarkDaMan]

^From all the indicators that are public knowledge, these 'proposed' projects appear to be chugging along. To find information on signed leases, prospective tenants searching for large spaces, or evidence that rates are high enough yet, a local real estate blog or site would probably be able to give you whatever information you are looking for. However in this blog we track building and urban design and development so I don't know that most of us, though I know there are a few here, have any intricate knowledge of the real estate market, other than what the media puts out for consumption. Such as, Columbia Sportwear looking at possible Portland sites for their headquarters, or Precision Castparts becoming a Fortune 500 company shortly while currently spread throughout several cramped offices along Macadam, both of which would by themselves assure a new office tower. We also have developers like Moyer who believes strongly enough in the Portland market that he is fast tracking an iconic tower with or without tenants when construction begins.

I do live in reality and not everything proposed will get built, but being a small market, developers don't just build prototypes of what they like to see, while working on other projects. Most of the local developers here only have a handful of projects and can't spare the expense of acquiring the land, designing a building, transferring FAR, getting it approved through the design commission, and than just sit on the plans unless there are extreme circumstances, like the dot.com bust.

In any case, I'm glad you are cheering Portland, but I also think you are under-estimating the market as well.

[MarkDaMan]

dup

[zilfondel]

Park Ave West and the ZGF HQ mixed-use building w/office space (which is already under construction).

^From all the indicators that are public knowledge, these 'proposed' projects appear to be chugging along. To find information on signed leases, prospective tenants searching for large spaces, or evidence that rates are high enough yet, a local real estate blog or site would probably be able to give you whatever information you are looking for.

I believe that what we mostly see is merely real estate posturing... I have seen enough 'vapor ware' and rumors go up in a puff of smoke to just wait until there is a shovel in the ground and concrete being poured.

[PacificNW]

Not to stray too far from the point of this thread but anyone hear of any rumors where Nike will be placing their new "Niketown"? I am just curious.

[pdxstreetcar]

I wonder if they might be going in the other half of the ground floor of the Galleria?

I'm really surprised we havent seen more office conversion to condo projects in downtown like many other cities, sure we dont have a lot of pre-WWII buildings which are ripe for conversion but we do have a desirable downtown, have/had a strong condo market and for a while not a very strong office market. i would have thought the last 5 years would have been prime for this considering what the office market and condo market was in this period.

[PacificNW]

⤴I was thinking they might relocate to one of the new downtown towers that will begin construction shortly (the ZGF or the Park Avenue West). I don't know what the timeline is for NIKE, tho.

[urbanlife]

I wonder if they might be going in the other half of the ground floor of the Galleria?

I'm really surprised we havent seen more office conversion to condo projects in downtown like many other cities, sure we dont have a lot of pre-WWII buildings which are ripe for conversion but we do have a desirable downtown, have/had a strong condo market and for a while not a very strong office market. i would have thought the last 5 years would have been prime for this considering what the office market and condo market was in this period.


Actually there hasnt been enough office building space to convert into condos. You would really need a vacant building to do so, and I dont think any downtown office building has ever been vacant. Plus you throw in the fact that the downtown building boom was more focused on the Pearl, there was no real driving force for anything like that in the core of downtown.

[MarkDaMan]

^I thought that eyesore of a building, the vacant guy at 2nd and Morrison, would make an excellent conversion into affordable studios.

[mhays]

Actually there hasnt been enough office building space to convert into condos. You would really need a vacant building to do so, and I dont think any downtown office building has ever been vacant.

Basically true, except if a building is half-vacant, you can choose not to renew the leases, and, subject to regulations and contract particulars, you can also buy out the leases.

[MarkDaMan]

^I don't think any building other than the one I mentioned above is even half vacant. I just read somewhere (and will try and find the story and post it) that there currently isn't 45,000 square feet of continguous office space available in Portland's core, either on a single level or multiple levels. Downtown is pretty tight, which is why the rents are skyrocketing. Taking an office building out in the current environment would probably force a company to relocate outside the core.

[urbanlife]

^I thought that eyesore of a building, the vacant guy at 2nd and Morrison, would make an excellent conversion into affordable studios.

Yeah, that is the only truly vacant building downtown, but I think there is something wrong with it. I remember asking around, but dont remember the exact reason why. It just isnt a safe building anymore. Granted I would love to see that building torn down and something much taller put in its place.

[Dougall5505]

there is of course the vacant office tower at 6th and oak but thats being changed into a hotel

[gooddirt]

some office rents I just pulled off the CBA:

-1000 Broadway - suites of 2000-4000 for $17.50/NNN (translates to say $26 gross) on the 24th-26th floors (CBA ID# 46812)

-Fox Tower - 40k sf asking $21.26/NNN (or 28+/- gross) (CBA ID# 47227); looks like its been vacant for a year

-Jackson Tower - $23 gross for 4k suite $15 gross for small 2nd floor suite

Revenue really depends upon the TI allowances, but it seems even the nicest buildings in town are below 30$

[pdxstreetcar]

i think there are some vacant floors in a few small office buildings by park avenue like one at park/alder (above pear gallery) and then theres the under renovation brasserie building

also there was a historic building open house a few days ago for the telegram building, i still can't figure out why that main floor is completely vacant in that building, it would be a great location for a restaurant, an architecture office or a new lobby to the mark spencer hotel

[Brandon_cole]

I wonder the same thing about the Telegram. The manager from the Mark Spencer who took us through the building didnt have any great insight.

[MarkDaMan]

i think there are some vacant floors in a few small office buildings by park avenue like one at park/alder (above pear gallery) and then theres the under renovation brasserie building

isn't the building above the Pear Gallery the Cornelius Hotel? The Cornelius will be renovated into a boutique.

[pdxstreetcar]

^
yeah youre right, i remember now, i guess i got it mixed up with the brasserie building

[PacificNW]

:shrug: This forum program is screwing up......I need to post something in order to get to the next page. :shrug: It worked...

[PacificNW]

http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1184297136249120.xml&coll=7&thispage=1


Downtown vacancies dip to low levels, and investors line up to fund new projects
Friday, July 13, 2007
DYLAN RIVERA
The Oregonian Staff
Last year, WebMD was bursting at the seams of its Old Town Portland office space, packing two employees to a cubicle and assigning some to work in conference rooms. But early this year, the company moved into more roomy, modern space at the Montgomery Park building in Northwest Portland, with the opportunity for expansion more than five years into the future.

No longer do employees have to navigate three floors and awkwardly placed walls to reach one another for quick chats.

"Moving here enabled us to not only lease enough space so we could continue to grow and have a fantastic feel, but it enabled us to improve communication," said Craig Froude, executive vice president of WebMD Health Services. "It is funny how physical space defines communication."

Facing similar growth pressures, dozens of companies in the downtown area are looking to make similar moves in the next year or so. They simply cannot, at least for now, because the downtown Portland office market is the tightest it has been in six years.

Developers already have responded by starting construction on several buildings that will help relieve the space crunch in a year or two. For good reason: In the three months ending June 30, downtown's vacancy rate for Class A space, the most modern and desirable buildings, dropped to 5.6 percent, according to the Grubb & Ellis brokerage in Portland. That's the lowest rate since the second quarter of 2001, when vacancy was 6 percent.

That's a far cry from the last quarter of 2002, when the rate peaked at 14.5 percent.

"It's taken a long time," said Patricia Raicht, senior research manager for Grubb & Ellis. "This is just very solid market fundamentals."

To be sure, the Kruse Way area of Lake Oswego recovered from the recession faster than any other part of the region. But the Class A vacancy rate there recently popped up to 10.5 percent, Grubb & Ellis said, because of troubles among home mortgage lenders, which lease much of the area's space.

The Portland-area recovery has caught attention of national pension funds and other institutional investors who buy office buildings and help finance some construction projects. Just last week, an investment adviser bought the KOIN Center in downtown on behalf of the California Public Employees' Retirement System, the nation's largest public pension fund.

The first developers working to ease the core-area office space shortage are testing creative ways to finance buildings with a combination of large retail as anchors for the upper-level office space. The retail provides an identity for the site, a draw for potential office tenants and a financial helping hand.

The Lovejoy and MachineWorks, both in the Pearl District, are examples. Developers Al Solheim and R.C. Ford considered saving the MachineWorks building, a former industrial site on Northwest Northrup Street that had been used mainly for offbeat art exhibits in recent years.

The pair had interested LA Fitness in locating on the site, but the cost of preserving the building for one use didn't work out, said Eric Haskins, a broker with Grubb & Ellis who represents the developers.

"The only way it made financial sense was to add height to the building and the office portion," Haskins said.

The nine-floor MachineWorks will house 66,000 square feet of office space when it is finished in fall of 2008.

Nearby, first-floor anchor Safeway helped the financing of The Lovejoy, a two-block mixed use project that appears on track to open next September, potentially beating the MachineWorks project to completion.

A law firm and a large national consulting firm are in talks about renting at The Lovejoy, which is identified with the mix of uses, said broker Mark Friel, with Pacific Real Estate Partners.

"We're the building with the Safeway," he said.

While Safeway and the offices may share some costs, the store doesn't technically provide a financial anchor to the project, said Brian Pearce, general manager for Unico Properties. The building will have split ownership: Solheim and partner Bob Ames will own the Safeway store and rent the space to the retailer, while Unico will own the upper floors offices, related parking spaces and an apartment building next door.

"The Pearl District is very mixed use in nature," Pearce said. "That's what makes sense to do there."

Unico is using its apartment ownership on the adjacent block -- also under construction -- to offer breaks on corporate apartment rentals to future Lovejoy office tenants.

The Pearl District projects will only slightly ease the tight commercial market. And the building owners won't necessarily find tenants ready to fill the space.

That's because downtown Class A rents averaged $25 a square foot per year, including expenses in the second quarter, Grubb & Ellis said. Most new buildings are seeking at least $32 a square foot, or in the downtown core, $35 or more for space that won't be finished until 2010.

Several law firms with leases expiring in the next few years are among the large tenants developers are courting. The Lane Powell firm expects to remain in the ODS Tower when its lease expires in 2009, partner Bryan Powell said this week. A year of looking at proposed office towers has led the firm to conclude it wants to stay put, as long as landlord Ashforth-Pacific can provide opportunities for expansion.

Stoel Rives, Oregon's largest firm, has just begun to consider what it will do when its lease expires in 2011, said Wally Van Valkenburg, office managing partner for Portland office. The firm has been ensconced in the Standard Insurance Center since the 1970s, and has a five-year extension option on its current lease, so it could stay put, he said.

Renting new space almost always costs more than remaining in a long-held location, Van Valkenburg said.

"You have to try to determine whether or not there is going to be enough value to justify the move and increased expense," he said. "It's a hard decision."

In the case of WebMD, the company saved 20 percent in rent by consolidating its 49,000 square feet on one large floor, so it didn't have to pay for duplicate amenities on multiple floors, said Nancy Petrusich, project manager with CresaPartners, which handled the company's relocation.

"If you don't have to pay 20 percent more because of having multiple floors, that's a direct savings to your bottom line," she said.

Dylan Rivera: 503-221-8532; dylanrivera@news.oregonian.com

[MarkDaMan]

thanks for posting that PacNW, I know this forum can be unforgiving as of lately when you try to post.