PORTLAND—“The commercial real east estate market in Portland is strong. We have not seen this much leasing activity in six years.” That is according to Harsch Investment Properties president Jordan D. Schnitzer. We spoke with Schnitzer in this exclusive Q&A on the local market and how in 40 years of being in the real estate business, he has never seen as many apartment starts underway as today in Portland.
GlobeSt.com: Can you give an overview of the commercial real estate market in Portland right now? (i.e. what level of development and leasing activity are you seeing, what sectors tend to be thriving?)
Jordan Schnitzer: Like most West Coast markets, there are a huge number of multifamily projects under construction and developers seeking permits in excess of 20,000 units. Portland's Central District office market has seen occupancy increase in the last six months due to a flight of high-tech companies coming from the Bay Area, as well as organic growth from start-up and second-stage companies already based in the Portland metropolitan market.
GlobeSt.com: What neighborhoods are generating the most interest for developers and tenants and why?
Schnitzer: The Pearl District and the Inner Eastside continue to be very vibrant. The Eastside sub-market, including Mississippi and Hawthorne streets to name two, are bustling with restaurant and retail activity.
GlobeSt.com: Harsch just leased more than 41,000 square feet in its Central Eastside property to beverage companies. What is the draw to this particular area for food and beverage companies? (i.e. what made House Spirits and Steven Smith Teamaker attractive tenants for you?)
Schnitzer: Our company just leased 41,000 feet in the Central Eastside to a new startup tea company, Steven Smith Teamaker, who's founder was previously best-known for Tazo Tea and another tenant called House Spirits, a distillery. The Inner Eastside is attracting creative companies that want to be in the center of Portland's quality-of-life environment.
GlobeSt.com: What's next for Portland's commercial real estate scene?
Schnitzer: Like many West Coast cities, we will wait and see if the apartment market gets overbuilt. In my 40 years of being in the real estate business, I never remember seeing as many apartment starts underway. Office and retail will flourish with increased density in the downtown area, with the West End and the Pearl District especially continuing to expand.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
