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PORTLAND-A flurry of lease activity at Gerding/Edlen Development’s Brewery Blocks redevelopment in Northwest Portland has the new 272,000-sf office building on Block #4 nearly 80% leased.

Gerding/Edlen’s Scott Eaton tells GlobeSt.com that the Art Institute has expanded its lease commitment from 72,000 sf to 82,000 sf, PPM Energy (a division of Pacificorp) has leased 37,000 sf, Compass Advisors has leased 7,000 sf and a law firm will soon sign for 6,800 sf. As well, Eaton says PF Chang’s restaurant chain has filled out the building’s 27,000 sf of retail space by signing on for 6,200 sf.

The new leases bring the 10-story building to 78% leased, says Eaton. The only space now available in the building is the fourth and fifth floors. Eaton declined to reveal lease rates for the latest transactions, but local brokers tell GlobeSt.com that net effective rents on recently signed office leases in the building have been in the range of $25-$26 per sf per year, fully serviced. Grubb & Ellis’ Dave Squire represented the Art Institute in its lease. Brokers on the other lease transactions were not immediately available.

Block #4, the upper floors of which were completed last month, is owned by Gerding/Edlen and a host of local investors. The other major office building in the project, Block 2 is owned by Multi-Employer Property Trust. That building, completed last year, is 55% leased, says Eaton. Eaton says they are having a harder time signing tenants to that building because its floor plates are 17,000 sf and there are a lot more choices for that size floor plate than for the 24,000 sf floor plates in Block 4. “But we have good activity and I believe it will soon catch up (with Block 4),” says Eaton.

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