Downtown office building sells for 25% of replacement cost
Is that San Francisco deal a harbinger of things to come Portland's way soon?
| Posted at 7:36 AM | Permalink |
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Comments (5)
One important item not mentioned is what is the net operating income. But, it is a huge haircut!!
Posted by pdxjim | July 7, 2009 8:52 AM
This could well be the future of commercial property in Portland. I am aware of many landlords who are now taking less rent just to keep good tenants in place.
However, for those "investors" who paid too much and therefore owe too much the current situation is bleak and the future is worse as marginal tenants go broke and there are no new replacements.
Posted by portland native | July 7, 2009 9:00 AM
I'd say that the Portland commercial market is down about 50%. A nice looking, small scale commercial mall along SW Barbur with 10 businesses now has only 5.
Posted by lw | July 7, 2009 9:29 AM
Good observation LW! It's hard to find a strip mall property anywhere in the Portland area without at least one or more vacant storefronts. And with a 12% unemployment rate it will only get worse before it gets better.
Posted by Dave A.. | July 7, 2009 1:43 PM
Unless banks all of a sudden start turning on the faucet, it is going to be that way here in Rose City. We're still build Class A space with fewer tenants downtown, so I don't know where they are getting the money from.
Worse will be if inflation kicks up and then interest rats click up to deal with it.
Posted by Steve | July 7, 2009 5:47 PM