PORTLAND, OR—JLL's recent search of thePortland area for office space options on behalf ofKnowledge Universe shows just how far the markethas tightened in the last 12 months, the firm says.

|

Brokers Eric Haskins and BuzzEllis explored opportunities throughout Portland'sCentral Business District as well as suburbs likeBeaverton and Lake Oswego.

|

Preliminary JLL second quarter office numbers show that the CBDoffice market has again grown tighter, with vacancy dropping to8.4%, its lowest level in at least 10years and down 80 basis points from last quarter. The CBDclass A market has seen rental rates increase at a rapid rate, withaverage asking rental rates hitting a new high this quarter of$29.27, up 1.4% quarter over quarter and up 8.3% year overyear.

|

In addition, there is currently just one existingoption for any tenant over 80,000 square feet in the CBD,according to JLL data.

|

“Tenants seeking large blocks of space of 80,000 square feet andup have to be nimble and creative in this market,” said Haskins,JLL senior vice president. “With the very limited availability oflarge blocks of space, it's often a case of knowing of what's notreadily available and how best to make it work for you.”

|

Of the potential options seriously weighed by KnowledgeUniverse, several were leased to tenants while under considerationwith others either not being available in time or at significantlyhigher rents. Knowledge Universe – a global education company with2,000 locations worldwide – was able to renew its existing leasefor 79,971 square feet at LibertyCentre at 650 NE Holladay Street on the Eastside and alsonegotiate short-term subleases for almost 23,000 square feet ofadditional space for expansion, of which a little more than 8,000square feet will eventually be on a direct lease basis.

|

The deal allows the global education company to refresh itsexisting space with minimal disruption to its employees while alsoaccommodating planned growth in its headquarters operations.

|

“The economics of this deal gives Knowledge Universe thecapability to meet their planned growth projections in headcountand also significantly refresh their space in order to retain andrecruit talent in the years ahead,” Haskins said.

|

Matt Bassist of LangleyInvestments represented the landlord, 600 HolladayLimited Partnership.

|

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.