Addition of retailers could revitalize historic Galleria
AM Living joins Brooks Brothers on ground floor of long-troubled downtown mall
POSTED: 06:00 AM PDT Wednesday, September 26, 2007
BY TYLER GRAF
Few Portland buildings have as storied yet as troubled a history as the retail core’s Galleria Building, owned by the Bill Naito Co. Built in 1909 and once the cornerstone of Portland’s retail sector, the historic Galleria has had trouble retaining retail tenants in recent years, with the exception of Made in Oregon, which is owned by Sam Naito.
But that may change soon.
In February 2007, high-end clothing retailer Brooks Brothers inked a deal to lease space on the bottom floor of the building’s southeast side. The arrival will give Brooks Brothers about 11,500 square feet of retail space centrally located on a prominent MAX light-rail line.
Adjacent to Brooks Brothers will be AM Living, a home furnishings store specializing in antique reconstructions. AM Living is a 39-year-old company with offices overseas and in Eugene. The company intends to add hardwood floors and dramatic lighting to accentuate the retail displays and underscore the company’s ideal of beauty, originality and high culture, director of sales Sheri Wayt said.
“This location is just waiting for the right retailer to come in and spice it up,” Wayt said. “We really want to create a retail store that other retailers can emulate.”
And that is the prevailing opinion of the Bill Naito Co. “This is happening now because we’re getting the tenants we wanted,” Naito’s Doug Campbell said.
For the man who brokered the deal, Jon Kellogg of Commercial Realty Advisors, the Galleria’s recent leasing signifies a strengthening of the burgeoning central business district thanks to spill off from the Pearl District.
“This reflects the new owners’ dedication to revitalizing this great center of business,” Kellogg said. The growth in the Pearl District is creating a “hemorrhaging” of potential retail costumers that will inevitably move into the retail district, Kellogg said.
Still, the building suffers from an antiquated design, Jeff Joslin of the Bureau of Development Services said.
“When you think about the floor plan itself, it’s not the most efficient,” Joslin said. “It’s more of a mall environment than a place for offices.”
But is Wayt worried about the Galleria’s reputation? “No, because I think, ultimately, that there’s been a real commitment by the city of Portland to reinvigorate downtown by reinvesting in old space.”
The demographics of the retail core, and Portland as a whole, were factors in AM Living’s decision, as Portland is known for its affluent, educated and cultured populace, Wayt said.
Demographics information released by Commercial Realty Advisors lists the average household income within a three-mile radius of the Galleria at $60,123 and the percentage of the population in that radius from the ages of 30 to 44 at 27.3 percent.
The Galleria has been on the Portland Development Commission’s radar for years due to its prominence, age and need for repair. The PDC has recommended continued renovations, improved loading docks and seismic upgrades.
“While other investments, such as the growth of PSU are important, the Work Group agreed that capital investments in buildings which have been long-term physical liabilities for the overall health of the downtown are important,” PDC’s 2007-2008 fiscal budget said.
The PDC is concerned that a centrally located building of the Galleria’s significance could have a negative ripple effect if it does not secure retail tenants. The PDC’s 2007-2008 budget calls the Galleria a development opportunity and says the building could receive a portion of $6.8 million set aside for improvements in the area. Improvements to the Galleria would be “catalytic,” Claudia Plaza of the PDC said.
Despite new retailers entering the Galleria, Campbell is reluctant to talk about the long-term goals of the building.
“I don’t like to count my chickens until they’re hatched and running around,” he said.
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