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Since late January, when voters passed measures to increase taxes on Oregon businesses, brokers in Southwest Washington say they have received dozens of calls from Oregon businesses looking into the possibility of relocating to Clark County.

Few businesses have made the move, but brokers in the Portland-metro area say more will probably follow suit as they seek lower taxes, more vacant space and cheaper rents.

“It’s still too early to tell if these inquiries will lead to multiple companies leaving Portland, or if they are just knee-jerk reactions to taxes that affect a business’ bottom line,” said Paul Carlson, director of the industrial group at the Portland office of Cushman & Wakefield. “But regardless if these businesses move or not, it’s a sign that these types of taxes are further hurting Oregon’s perception as a place to do business.”

Measure 66 raised the income tax for households earning at least $250,000 per year or for individuals making at least $125,000 annually, from 9 percent to 10.8 percent. Measure 67 raised the corporate minimum tax from $10 to $150, and also raised the tax rate for businesses earning more than $250,000 per year, from 6.6 percent to 7.9 percent. Those increases are expected to annually raise $727 million, which will be used to pay for education, low-income housing and other state-run programs.

Portland already has a reputation as being unfriendly to businesses, Carlson said. Tax increases only strengthened that notion, he said.

Other cities have acknowledged this trend, and are appealing to Oregon businesses.

In a Jan. 28 , Chicago Mayor Richard Daley commented on measures 66 and 67. He said, “It will help our economic development immediately. You’d better believe it. We’ll be out in Oregon enticing corporations to relocate to Chicago. I’ll be very frank. I make no bones about that. If those states want to do that, so be it.”

Officials in Washington state haven’t been as outspoken as Daley; however, Portland businesses are looking to the north nonetheless, according to brokers.

“Immediately after the passage of the measures last (January) we had three publicly traded companies from the Portland area call us looking at the possibility of moving to Southwest Washington,” Carlson said. None has committed to moving; however, all three told Carlson they are actively looking for space in Clark County because it’s close to Portland and has tax advantages.

Most companies considering whether to move are still weighing the cost of a move against tax savings. But a few businesses have already announced they’re heading for Washington. Northwest Pipe moved its headquarters from downtown Portland to Vancouver at the end of last year. Eugene-based Farwest Steel last week announced that it has bought a 20-acre site at the Port of Vancouver USA, where it will build a new steel manufacturing facility.

“We haven’t finalized any deals yet, but we have at least a dozen open investigations into spaces for Oregon businesses looking to move to the Vancouver area,” said Eric Fuller, principal of Eric Fuller & Associates, a Vancouver commercial real estate firm. “Most of the businesses that we’ve talked to are small to medium-sized private businesses looking for office space.”

Vancouver’s office vacancy rate is at about 18 percent, with an average asking rent for class A space between $21 and $24 per square foot, according to the Grubb & Ellis Second Quarter Market Report. Portland’s Central Business District, meanwhile, has a 10.7 percent vacancy rate and an average asking rent of $27 per square foot. There are similar discrepancies in the areas’ industrial markets.

The Port of Kalama has developed an advertising campaign around the tax advantages in Washington. The ad, which airs on Portland radio stations, says that Kalama offers a great quality of life and superior facilities combined with a lower cost of doing business.

But Terry Phillips, principal with the Phillips Group in Vancouver, said his firm hasn’t even had to make a push to attract Oregon businesses.

“It’s been more of us sitting back and taking inquiries,” Phillips said. “The entire market covers both Portland and Vancouver, so we aren’t making a concerted effort to make businesses in Portland or any of the suburbs move to Vancouver.”

Carlson added that a lot of these deals are still in the works.

“You have to move the hardware, the software and the manpower,” he said. “But if those costs fall below the increased taxes, a business is going to make the smart financial decision and move.”