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Originally Posted by urbanpdx
Kruse Way rents are over $30 per sq ft and there have been, I think, 5 or 6 100,000+ sq ft buildings built since the last major office tower downtown was built.
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Kruse Way has considerably less commercial square footage than downtown. The law of supply and demand takes effect quicker when you have a limited number of sites in a very attractive corridor. It is easier to fill up the lesser office space on Kruse, raise rents, and justify new construction. This is happening in the CBD too, just at a slower rate as the market is much larger, and space (for new buildings) isn't nearly as constricted.
Also, the Brewery Blocks added substantial office space downtown in recent years. When people comment about the lack of new office towers downtown (or new downtown office towers vs. Kruse Way), they often forget about the Brewery Blocks and their thousands of square footage, since almost everything in the Pearl has been condos. Isn't the new SoWa OHSU building office space also?