91视频

Another traditional Class A building repositioned to accommodate creative office users has attracted a big-name tenant.

Puppet Labs, a Portland startup specializing in information technology automation software, has signed a lease for approximately 75,000 square feet in the Block 300 building, at 308 S.W. Second Ave. The move (slated for November) will give the company twice as much space as it has presently in the Pearl District.

Block 300, where a multimillion-dollar renovation is finishing, is the latest building to undergo a creative overhaul in recent years. The U.S. Bancorp Tower is in a similar transition; the Oregonian Building is expected to follow suit. Real estate professionals say those conversions reflect an understanding among office owners that to compete, they must offer more than merely Class A space.

鈥淲e have buildings throughout the country, and Portland has maintained a pretty tight vacancy rate even during the bad times 鈥� especially in the Class A properties,鈥� said Sam Fuchs, the chief operating officer of Kaufman Jacobs, Block 300鈥檚 owner. 鈥淪o it was a market that we were willing to take a calculated risk in 鈥� that 鈥榠f you build it, they will come鈥� philosophy. But my feeling was, to do this, we couldn鈥檛 go halfway. We had to put something together that was a real statement. To turn the image of this building around, we were really going to need to pull out all the stops.鈥�

The building hadn鈥檛 been upgraded since it was constructed in 1991, and the General Services Administration in 2013 vacated approximately half of the space. So Kaufman Jacobs hired ZGF Architects to completely redesign the lobby in a fashion that Fuchs calls 鈥渋ndustrial chic.鈥� In addition to new conference and common areas, the renovation added splashes of color with an internal green wall and modern LED installation. Also, a fitness area, locker rooms and shower facilities were completely rehabbed.

鈥淚t鈥檚 creative, but it鈥檚 professional,鈥� said Cresa Portland Managing Principal Craig Reinhart, who represented Puppet Labs in the lease. 鈥淚t鈥檚 really a unique combination that allows you to accommodate the creative class of employee that is typical with the urban technology company, but also you鈥檙e selling to major corporations 鈥� so you need a level of sophistication while not losing the culture inherent in the building you鈥檙e in. I think Block 300 has nailed it.鈥�

Puppet Labs will occupy the fifth and sixth floors of Block 300. The space will lose the drop ceilings and carpet of past offices, but keep Class A amenities such as modern mechanical and power resources. Reinhart said that helped lure Puppet Labs, whose employees operate multiple computer monitors simultaneously. Additionally, Puppet Labs鈥� tenant improvement will create enough bicycle parking for all of its employees, as well as room for dogs.

Puppet Labs CEO and founder Luke Kanies said Block 300 was attractive because the company wanted to be closer to the city center, and the building had big, open floor plates it needed. Puppet Labs last year grew from 103 employees to 230. It currently has 260, and Kanies expects that growth to continue.

鈥淲e鈥檙e looking at more than that this year and continuing growing at least that rate kind of indefinitely,鈥� he said.

Jake Lancaster, Mark Friel and Buzz Ellis of Jones Lang LaSalle represented Kaufman Jacobs in the lease. Reinhart said the two groups collaborated extensively to negotiate the lease in 60 days; similar deals can take up to six months to complete, he noted.

Fuchs said similar deals are in the works, but declined to provide specifics.

鈥淲e have a lot of exciting irons in the fire, I can tell you that,鈥� he said.