SAN FRANCISCO-Harsch Investment Properties of Portland, Ore. is catching some heat for pricing tenants out of Four Fifty Sutter Street, the downtown medical office tower it recently spent several million dollars upgrading.

According to this morning’s Oregonian newspaper, 96 physicians and dentists on month-to-month contracts received notices in August that in September their rents would increase anywhere from 40% to 1,400%. In one case, a dentist was informed his rent would increase from $2,800 a month to $8,000. In another case, a neurologist rent was increased from $1,455 a month to $3,545.57, and told non-medical tenants – the Internet market research company KiraCom Corp. is one – would soon be moving in.

“I took that to mean they really wanted us out,” Dr. Marilyn Robertson, the neurologist, told the Portland-based newspaper. “So I started looking right away for another place for my office.”

The hike has spawned complaints to local medical societies as well as the San Francisco Board of City and County supervisors, which held a special meeting to discuss the complaints last month. But Harsch Investment says the rents have been far below market for a long time, the increase is not as much as it could have been and, when you lease space on a month-to-month basis, that’s what happens.

Indeed, Harsch Investment president Jordon Schnitzer, according to the Oregonian, would have this to say to a doctor asking for his rent to be kept low: “Tell me, doctor so and so, what do you charge your patients? Are you charging them less than your going rate? Are you subsidizing your patients?”

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?


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



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.