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HILLSBORO, OR-Serveron is no longer a Central Oregon-based company. Formerly Micromonitors, the manufacturer of monitors for electrical transformers has signed a lease for 23,240-sf in a 33,000-sf flex building owned by Wyse Investments. The building is located at 3505 Aloclek Dr., across the street from Evergreen Corporate Center.

Don’t expect it to stay there long, however. CEO Jim Moon tells GlobeSt.com that the company is ultimately looking for a 50,000-sf space in a business park that can handle the company’s expected expansion to 150,000 sf over the next couple of years.

Thinking it may be able to get a better deal several months down the road, however, the company opted for a six-month lease that included furniture. Moon’s broker, Melvin Mark’s Pat Schreck, says the company will go back out in September and start a search for a more permanent home. Steve Marcy and Cliff Finnell of Grubb & Ellis represented the landlord.

This space was previously being marketed at a full service rate of $21 per sf to $22 per sf annually, says Schreck, but given the current conditions Serveron was able to get it at around a 15% discount, including furniture. “We were seeing offers as low as $16 per sf that included free rent, extra tenant improvement dollars and furniture for longer-term deals,” says Schreck. “We’ll have some fun on the next go-round.”

Serveron recently received $16.5 million in new financing. The goal of the move is to be better positioned to attract the quality engineers needed to keep pace with demand for its product.

Micromonitors’ core product is a sensor that is able to detect individually the presence of key fault gases that can lead to incipient failure or inefficient operation of transformers. The presence of each gas represents a different type of problem within the transformer, some of which can lead to catastrophic failures.

The market potential for the product is huge, as there are several hundred thousand transformers in operation around the world, most of which are being overused and under maintained as a result of deregulation. The 25,000 devices are also are expected to be attractive to purchasers of new transformers who want to protect against manufacturer defects. Transformers cost upwards of $2 million apiece but come with only a one-year warranty.

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