It occurred me recently how fortunate we all are to live in a city where we have an imaginary line (Urban Growth Boundary) drawn around us, pushing us to utilize what we have to the best of our abilities.  I know that historically the dream for prior generations was to get a good job, work hard and raise your 2.5 kids and dog in your very own slice of suburbia.  For many, that remains the ultimate goal, and I can absolutely appreciate that desire.  I do believe however, that the lifestyle ambitions of the younger generations entering their adult lives are being approached quite differently.  They are much more interested in living near the heart of the city rather than trade that proximity for a bigger house and front yard.  Fundamentally, I believe this one of the main benefits of our UGB.  Instead of pushing out, we have the opportunity to think about improving the core of our most vibrant neighborhoods.   Rather than finding untouched land and starting anew, we focus on revitalizing central neighborhoods that have seen better times.

Despite the current trend, it honestly won’t be a surprise to me if we start to see more of the older generations finding a way to get back to the city core as well.  When I think of the quality of life that my parents are going to live as they get older, I can see a lot of benefits to them moving closer in verses staying in the suburbs.  I am sometimes surprised when I see articles written about some of the “hot” areas around town; areas that may hold onto the spotlight because of new restaurants and shops, but lack basic conveniences of a more “full-service” neighborhood.

To me, the neighborhoods that are going to be the “hottest” in the future are the ones where most of your goods and services are within walking distance of each other.  For example, if you look at a section of town like the Hollywood district, you will see an area where you can handle the vast majority of your personal business without ever having to get in your car. This of course is over-simplification, but you show me a high walkability score, and I’ll show you a neighborhood ready to thrive.  Without our Urban Growth Boundary, I can’t honestly say that I’d feel the same.

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You may have noticed a fair number of articles lately regarding new in-fill multifamily projects that don’t contain any parking spaces. In my 15 years in business, starting with property management, then moving into real estate sales and development, I am constantly dealing with this question. I have had the opportunity to develop several commercial buildings in some of Portland’s most vibrant neighborhoods. Here is what amazes me: when I have a building that has no parking, the issue of parking rarely comes up. But, if I have a building with only two or three spaces, it will often be the main thing that every potential tenant wants to discuss.

I know that we all want to have our cake and eat it too, but when it comes to the issue of parking in the city, a compromise may be in order. The desires to have 20-minute neighborhoods, where we can walk to all of our goods and services, and have Walmart-sized parking lots, are diametrically opposed. If we are going to have 20-minute neighborhoods, then we have to start getting used to the idea that parking is going to be at a premium. Those who are opposed to a development project without parking are often not willing to look at what the increasing density can do for the services offered to the neighborhood. Increased density will bring people closer to the goods and services that are being offered in that neighborhood, as well as help to strengthen local businesses in the area.

Keep in mind, this is coming from a guy that would love to see what would happen if gas were being sold at $10 per gallon. Just think how drastically people’s day to day habits would change. Not only would transportation habits shift dramatically from personal to public, but people’s relationship with their community would be transformed as well.

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I recently read about a company based out of New York called . Its website simply states its focus, “We design, finance, build and operate hydroponic greenhouse farms at supermarkets, eliminating time, distance and cost from the food supply chain.”

The more I read about these hydroponic greenhouses, the more appealing the idea is to me. I have yet to figure out where the downside of the idea is  (I am sure as with all ideas, there are additional considerations, so I would love to have you tell me what I’m missing).

To oversimplify what these folks are doing, they are looking to place their hydroponic greenhouses on top of or right next to grocery stores. The greenhouses allow them to control their growing season, forgo the use of pesticides or chemicals, and obviously deliver the product immediately and without shipping cost/pollution.

The concept makes me think of the impact it could have on real estate markets across the country. As I drive around Portland, I can envision many buildings that could be converted for this use. I can even imagine a time when a majority of the produce that we consume is being grown in hydroponic greenhouses. If our current idea of a grocer as solely a distribution point were to change to include manufacturing as well, it could provide additional jobs and utilize current buildings in our market place to a much higher degree.

This type of resource-efficient and health-focused innovation is exactly the direction our economy and industry should be headed, and I wish the folks at BrightFarms the very best.

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As a psychology major in college, I am always fascinated by the way people address challenges in their lives. With the Olympics, seeing athletes overcome challenges, obstacles and opponents has been at the forefront of the games.

I have a tremendous amount of respect for the athletes from around the world who have dedicated their lives to the pursuit of excellence in their sport.

I just read an interesting story on NPR’s website about how the athletes feel when they are able to win a medal.  The Olympians who are able to achieve gold, of course, ride a major high, beaming with pride for their country while having their hard work and dedication recognized as the best.

The athletes who win bronze have the excitement of making the medal podium and not being left off the recognition list. Oddly enough, the athletes who experience the least joy are the silver medalists. Disappointed to not be on top, they are left with the angst of knowing they were one point, a tenth of a second or just one toe point away from greatness.

To the every day person, a silver medal is pretty outstanding. And it seems insane that an athlete would be disappointed. The athlete did absolutely the best possible with what he or she had control over, but on that day, during that competition, the odds were simply not in his or her favor. That is something I understand; I realized many years ago that in business and life there is very little that we are able to control. Yet the one constant is our attitude, our mental state. Only I get to choose whether I am going into a situation in a positive or negative manner. Would I smile with my silver medal? Or would I frown? While I’m not an Olympic athlete, I do have the pleasure of working with many of Portland entrepreneurs, and as I reflect on these folks, I realize how much running their businesses relates to the hard work and dedication Olympic athletes put in. Being an entrepreneur in today’s business climate takes a thick skin, the ability to set a goal, and the patience, practice, and power to do everything you can to make it to the top of the podium and win the gold.

I was just speaking with one of our clients discussing how easy it can be to get distracted or pulled away from your goal by doing work that keeps you busy but doesn’t move you toward the finish line. I’m assuming it is the same with athletes, where they can easily be tempted to take a day off.  It’s a luxury that most entrepreneurs can’t afford. Yet with an Olympic attitude and positive mental state, entrepreneurs have the power, just like these athletes, to grit their teeth and take control.

by The U.S. Army via Flickr

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President Obama’s visit to Portland last week got me thinking about our country, our economy, and our progress in the fields of environmental sciences and sustainability. We all know as residents of Oregon that our state is a leader in environmental issues (We don’t get the “tree hugger” moniker for nothing). As someone who grew up in New England, I’m still amazed at how this has happened when we have so many larger cities across the county that could and should lead the way, as well.

I feel like President Obama and Congress have really missed the boat on the opportunities that could arise from our taking a major leadership role in environmental sciences. John F. Kennedy was able to stand in front of the American people and say we are going to the moon! Going to the moon was, in itself, in my humble opinion, not necessarily the coolest part of the process. For me, it was the pushing of the technology and the people to go beyond what they thought possible.

How amazing would it have been to see our President stand in front of us and say we are going sustainable? If we push ourselves to the be the leaders, then we can be the ones growing the industry, creating the jobs and setting the curve. I hope that some day in my lifetime I can walk into a Home Depot and the only products available are green or sustainable.

I am usually not a big fan of government stepping into the private sector, but I believe this is one time when it can make difference. The best example that I can think of is when the government regulated the efficiencies of air conditioners by increasing the standards for all manufacturers they leveled the playing field. I believe that is this type of intervention that will be necessary to start pushing us further. But, for the moment, it’s at least great to live in a major U.S. city in which the concepts of sustainability are valued by so many – particularly within the built industry. Perhaps we’ll indeed show the rest of the country what’s possible.

Photo by via Flickr

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You do something to me,
something that simply mystifies me.
Tell me, why should it be
you have the power to hypnotize me?
Let me live ‘neath your spell,
Do do that voodoo
that you do so well.
For you do something to me
that nobody else could do!

– From Cole Porter’s “You Do Something to Me”

With all due respect to the folks that work hard creating the amazing donuts at Voodoo, I am pretty certain that the main ingredients that go into those donuts are similar to many of the donuts created by other donut shops across the county. As someone that likes an occasional donut (don’t tell my wife), they really don’t taste different than any other donut that I have tried, but you have to tip your hat to the owners for creating an experience for which people are willing to wait in line to get them.

I am amazed at the power of the pink box. I purchased some donuts as a thank you gift for one our tenants and the second I walked in the door all eyes were on that box and they knew exactly what was in it. Voodoo Doughnut is a great example of a company that has turned the ordinary act of buying a donut into an experience. The experience of buying a donut has added value to its product.

One of the keys to success for many of Portland small businesses these days is to find ways to add value to your products or services. It is these experiences that not only increase the bottom line for the company, but also add to the character and appeal of our city. I am by no means saying that you can develop these types of experiences overnight; it takes hard work and discipline to make it happen. It’s a lot like an athlete training for an event. They make it look easy but only because they put in the time.

In the business-to-consumer retail market, it’s perhaps somewhat easier to come up with a gimmick or lovable quirk. But it’s a bit more difficult when it comes to the B2B scene. When we refine the scope down to the specific PDX building and real estate markets, I think the equivalent phenomenon comes down to this: are we overwhelmingly exceeding the expectations of our clients? My take is this: we may not always be able to wrap a real estate deal in a distinctive pink box, but truly exceeding expectations will definitely raise all of the eyebrows in the room in (almost) the same way.

Photo by via Flickr

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If I had a nickel for every time someone asked me how the commercial real estate market was doing, I am pretty sure I would be writing this from a sandy beach somewhere in the tropics.

One can dream.

A little while ago I had a conversation with a gentleman who owns a local limousine company. The funny part about the conversation was that by the end, I realized what a great market indicator his business can be. When you think about it, people like to order limos when they are feeling confident about themselves and their businesses. It made me realize that I should probably keep his number and stay in touch just to see when things pick up on his end.

It also made me think about another indicator for the market that is pretty obvious. In my neighborhood, I have two houses that I know about (I am sure there are more) – one in in the process of being foreclosed on by the bank and the other, thanks to neighborhood gossip, occupied by the prior owner that has chosen not to pay his mortgage. It seems to me that until these types of situations are flushed through the system that we are going to see an economy that will have a hard time getting out of first gear.

The upshot of all these examples is that you can read all the market reports and forecasts that you want, but the basic answers to “how’s it going” for all of us smaller business owners can be found in some of the simple things that we see day to day.

Please don’t take me for pessimist with this blog. You won’t find a person that will talk about this town and its potential more highly than me. I think the key to success for all of us is to get back to the basics and work hard on the systems that make your business successful.

My crystal ball says that we have about another three to four years of some of this slower growth. This prediction is solely based on how long I think it will take for the foreclosures and short sales of houses to get through the system. My only concern at this point is this: What’s to stop us from stepping on the gas as much as we did before?

Matt Schweitzer is an owner at .

Photo courtesy of  via Flickr

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I just had the pleasure listening to (As someone who works in the commercial real estate business, it has become a necessity to do my “reading” in the car).

I have always been a fan of reading books about people whose lives and experiences are ones that I could never live. Jobs lived a lot of life in his short time with us. Whether you are a fan of Jobs or not, the one thing that you have to tip your hat to is that the man was a visionary who was not willing to settle for anything less than what he saw as perfection.

The people that worked with him and for him would tell you that he was not necessarily the epitome of the perfect human being. But they will tell you that he drove them further than they ever thought they could go. So how does all of this relate to the real estate industry in Portland, Oregon?

I am glad you asked. Whether you run a business that is still starting up or looking to grow, or are a property owner looking to get the highest value from your property, I believe it all starts with a clear vision of where you are going and, from there, depends on an ability to stay focused on that vision. I have met many people along the way willing to tell me how things can’t be done, but very few who are interested in looking for solutions. And, as a commercial property owner for many years in town, I’ve had the pleasure of working closely with thousands of business owners and tenants. Through this, I’ve seen many businesses get caught up in the day-to-day work of running a business.

My advice: Don’t be afraid to take some time out of your work week and work on your vision. It will pay huge dividends in the long run.

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