CBD set for large office deliveries in the fourth quarter
- The delivery of Broadway Tower, 9North and the Meier & Frank building in the fourth quarter of 2018 will add an additional 4.6 percent of Class A office space to the CBD.
- The 19 story, Broadway Tower, is another successful addition to Portland’s office market by development group BPM Real Estate. The mixed-use tower will feature a 180 room Radisson Red Hotel on the bottom 8 floors, while the top 11 floors are 94 percent preleased. Additionally, the Meier & Frank building is roughly 43 preleased..
- The significant addition to office inventory in the CBD, along with large move-outs by Wells Fargo and The Art Institute, will cause vacancy to increase over the next year, with Class A vacancy likely expected to increase above 10 percent for the first time since 2004.
- With almost 1.5 million square feet of new office space delivered to the CBD in the past 3 years, the spigot may be turning off with only 2 projects still under construction, one of them the 3rd & Taylor build-to-suit for NW Natural. Of course that all depends on BPM Real Estate’s proposed 35 story mixed-use building, Block 216, which will add another 160,000 square feet to the pipeline, and given BPM’s track record that appears likely to break ground.
Source: JLL Research