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American Assets Trust has filed a proposal to construct two new mid-rise office buildings totaling 370,000 square feet at the Oregon Square property in the Lloyd District.

The early plans submitted to the Portland Bureau of Development Services show the San Diego-based real estate investment trust is looking to move ahead despite economic uncertainty related to the coronavirus pandemic.

A phased approach would be used to develop the buildings, which are being designed by GBD Architects. Construction would take place on Block 90, at 729 N.E. Oregon St., and Block 103, at 827 N.E. Oregon St. The two blocks make up the southern half of Oregon Square, and are currently occupied by two-story office buildings constructed in the 1940s.

The Block 90 building would be five stories, while the Block 103 building would be six. They would be linked by one level of underground parking.

GBD Architects has entered the BDS‘ early assistance process for design review on behalf of American Assets Trust. The project team recently held a virtual meeting to introduce the project to the Lloyd District Community Association.

鈥淲hat we’re hearing in the community right now is there’s still a lot of potential for office, especially large-floor-plate office,鈥� said Wade Lange, an American Assets Trust vice president and regional manager of its Portland properties.

During the first quarter, the Lloyd District commanded average asking rents of $36.69 per square foot, compared to $34.08 across the Portland-metro area; also, Lloyd’s 7 percent vacancy rate was lower than the 12.1 percent rate around the region, according to Jones Lang LaSalle.

Portland has remained a strong market for American Assets Trust, Steve Center, vice president of office properties, said during an April 29 earnings call. The company’s existing buildings in Portland were 100 percent leased, he said.

American Assets Trust is 鈥渋n the early stages of design development of two new office buildings on the two remaining blocks at Oregon Square, which we will continue to evaluate pending market conditions,鈥� Center said.

The company will not build the structures on speculation, Lange said.

鈥淲e’d like to find tenants before we begin any construction,鈥� he said.

The Oregon Square project team has been working to meet in person rather than via video, Lange said.

鈥淚t’s harder,鈥� he said. 鈥淚t’s just a slower process than getting in a room and working through everything.鈥�

The new commercial buildings’ ground floors will be adjustable, Michelle Schulz, a GBD Architects principal, stated in an email.

鈥淭hat’s likely office in the current market environment, but we are keeping the possibility for all commercial uses at the ground floor to be flexible for the future,鈥� she stated.

Portland design guidelines encourage active ground-floor use, often meaning retail. The project is not yet scheduled on the Portland Design Commission‘s agenda.

While the new buildings are being planned, work is about to begin on a remodel of the northwest building at Oregon Square. The project is in the final stages of permitting, Lange said. Turner Construction is the general contractor.

The renovation of the 33,276-square-property is expected to be delivered in early 2021, Center said.

The other building at Oregon Square, at 830 N.E. Holladay St., on the northeast corner of the parcel, is leased to WeWork.

Closures related to the coronavirus pandemic have hit the Lloyd District hard. The neighborhood relies on big venues for events and shopping, including the Oregon Convention Center and Lloyd Center mall.

鈥淚t’s a little concerning that the convention center, the Moda Center, (Veterans Memorial Coliseum) and the mall are very important to the neighborhood, and it looks like those types of venues will be the last thing to reopen because of the coronavirus crisis,鈥� Lange said. 鈥淪o we’ve got a long road ahead of us.鈥�

American Assets Trust is beginning to consider how to reopen office buildings it owns, said Lange, who expressed confidence the Lloyd District will emerge from the pandemic in a strong position.

鈥淚 don’t think long term it will have any impact,鈥� he said.