A major Midwest industrial developer is looking to make its mark on the Portland-metro market with a speculative project in Hillsboro.

Scannell Properties plans to seek bids in the coming weeks for construction of a 126,000-square-foot industrial structure with a 32-foot clear height. Mackenzie is designing the project for Scannell, and CBRE will search for a tenant.

The developer, based in Indianapolis, saw opportunity in the Portland market after completing two build-to-suit projects in Salem, said Mohnish Narlanka, a Scannell senior development manager who oversees the company’s Pacific Northwest projects.

Scannell built approximately 1 million square feet of logistics space for Dollar General and 300,000 square feet for Gensco after approaching the city of Salem to forge a land agreement to develop an industrial park.

“That was kind of our first dive into the greater Portland market,” Narlanka said. “As we got some positive momentum in the region, our next mandate was let’s go find that speculative deal that we like and plant the flag.”

Narlanka said he’s not among those investors turned off by the “optics around downtown Portland.” The developer said his wife grew up in Beaverton, and he’s become familiar with the area.

“Yes, there are challenges for downtown Portland, but it’s not indicative of what’s going on in Clackamas or Hillsboro or these submarkets that are doing really well,” he said. “So, we’re going to continue to invest where there’s demand. Our broad thesis is the Portland area is an area where there’s durable demand.”

Scannell develops some $4 billion in industrial real estate annually, split between speculative and build-to-suit projects. The privately held developer has in-house construction managers, along with accounting and legal staff, and typically works with local architecture firms and contractors.

In Hillsboro, Scannell was encouraged by limited land availability and activity from Washington County users.

“What we really liked about Hillsboro is it’s kind of a captive demand audience where people want to be close to those they serve, whether that’s Intel or someone else,” Narlanka said.

The developer is investing in a market that has seen its share of ups and downs in recent years. A spate of speculative construction led to higher vacancy rates and softening rents in some submarkets.

In the second quarter, leasing activity grew 25 percent compared to a year earlier, and leasing was up 7 percent compared to the previous quarter. That led to net absorption of 508,147 square feet.

Vacancy rose as new projects opened with limited preleasing. “Despite these headwinds, demand for modern Class-A space remains strong in select submarkets, particularly the Sunset Corridor, where premium facilities command some of the market’s highest rental rates,” CBRE stated in the quarterly report it released last week.

Vacancy in the Sunset Corridor remained low at 4.2 percent, compared to the market average of 7.7 percent.

An undisclosed tenant signed the quarter’s largest lease at Prologis Park Clackamas for 304,000 square feet. Consolidated Supply Co., Nuna Baby Essentials and Ferguson Enterprises also signed major leases, according to CBRE.

The construction pipeline remains robust, with nearly 3.5 million square feet on the way. Developers have delivered 1.6 million square feet year to date in the Portland market.

Scannell will seek one or two tenants for the Hillsboro speculative project, Narlanka said. The development is located at Northeast Starr Boulevard and Meek Road in Hillsboro, just south of U.S. Route 26 and near a cluster of new construction, including an Amazon fulfillment center and data centers.

The warehouse “theoretically could demise into two suites,” Narlanka said. “Many users prefer (an) entire building.”

Scannell is in the final phases of permitting and expects to begin clearing and grading the site in late September, Narlanka said. The company expects a 10-month construction phase, with availability in summer 2027.

Correction: An earlier version of this story incorrectly stated that Mohnish Narlanka leads Scannell Properties’ West Coast projects. Narlanka is in charge of the Pacific Northwest for Scannell.

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A Portland-based business has purchased a 160-unit apartment complex in Vancouver, Washington, for $35.45 million.

Mark Desbrow’s Green Light Housing snapped up the Carriage House Apartments in a transaction that values the Southwest Washington asset at $221,563 per unit.

Green Light has transitioned from developing market-rate housing into developing and operating affordable housing, Desbrow stated in a news release.

“We have now added a workforce housing acquisition and development platform and are thrilled to expand this work into Washington state with Carriage House Apartments,” stated Desbrow, Green Light’s founder and managing partner.

The seller was Jackson Square Properties, a San Francisco-based investment group.

CBRE‘s Joe Nydahl and Josh McDonald represented both the buyer and the seller.

Well-located Vancouver multifamily properties continue to draw investment, supported by strong fundamentals, limited new supply and continued population growth, according to CBRE.

“Carriage House represents exactly the kind of opportunity that continues to attract strong investor interest in the Vancouver submarket,” stated McDonald, a CBRE executive vice president.

CBRE Debt and Structured Finance team members Nick Santangelo, Micah Springston and Matt Thorp sourced accretive financing through Fannie Mae‘s Multifamily Affordable Housing Program at a 75 percent loan-to-value ratio, CBRE stated.

Carriage House Apartments was built in 1993 at 4714 N.E. 72nd Ave. in Vancouver. Its units have two or three bedrooms. Amenities include a swimming pool, a fitness center, a clubhouse, a gated entry and surface parking.

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A 167-unit Northeast Portland apartment building has sold for $30.7 million to a California investment group.

Grant Park Village Quimby, completed in 2018, was purchased by Laurel Property Group of Beverly Hills, California. LPG specializes in managing multifamily properties for family offices and wealthy investors.

The seller was the property’s developer, Capstone Partners, alongside PCCP, a Los Angeles-based real estate investment manager.

The transaction values the 117,333-square-foot asset at $183,832 per unit, or $262 per square foot.

“Grant Park Village Quimby represents exactly the type of institutional‑quality, transit‑oriented asset that investors are seeking in today’s market,” Joe Nydahl, a CBRE executive vice president, stated in a news release. “The property’s finishes, location fundamentals and the limited future supply pipeline in the Grant Park submarket position it well for long‑term performance.”

Nydahl and Josh McDonald represented both the buyer and the seller in the transaction, with support from Scott Williams and Ryan Jameson of CBRE Debt and Structured Finance.

The building at 1580 N.E. 32nd Ave. is in the Sullivan’s Gulch neighborhood and sits adjacent to its sister property, Grant Park Village Henshaw. The properties are north of Interstate 84 and next to a Fred Meyer store.

The apartments in Grant Park Village Quimby are studios or have one or two bedrooms; they average 554 square feet. The midrise community features modern unit finishes and a range of resident amenities, including a fitness center, a resident lounge, an outdoor courtyard and a pet spa.

The property sale was recorded on April 21, according to Multnomah County records.

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Hillsboro’s data center market ended 2025 with a 0.2 percent vacancy rate, according to a recent report, underscoring insatiable demand in the sector and constrained supply.

At year end the market had 475.4 megawatts of inventory and approximately 1 megawatt of available capacity, CBRE found. Asking rents ranged from $175 to $225 per kilowatt per month.

“Hillsboro‘s exceptionally low vacancy underscores how critical the market has become for West Coast deployments,” Haakon Weinstein, a Portland-based CBRE vice president, stated in a news release.

“Even with limited new supply last year, demand remained steady, driven by the area’s network density and access to renewable power,” Weinstein added. “With development constrained in part by the region’s urban growth boundary and power transmission limitations, availability will remain scarce, influencing both rate and land price trends.”

Hillsboro remained the seventh-largest North American data center market, led by Northern Virginia, Atlanta, Dallas-Fort Worth, Chicago, Phoenix and Silicon Valley.

Locally and nationally, data center developers perhaps have run out of easy locations to build. Data center capacity under construction fell to 5,994.4 megawatts at the end of 2025, compared to 6,350.1 megawatts a year earlier.

CBRE’s report blamed “longer timelines tied to permitting, zoning approvals and securing adequate power” for the first drop in data center construction since 2020.

Weinstein said he expects to see more construction near major cities, where operators prize speed.

“As data centers progress, you’re going to see more data centers on the edge of population centers that have very low latency,” Weinstein added in an interview.

Despite demand, Hillsboro isn’t where growth is occurring nationally. Dallas, Austin, Atlanta, Raleigh, North Carolina and Denver-Boulder, Colorado, are all seeing strong growth, Weinstein said.

Oregon is prized for relatively cheap electricity, and a mix high in renewable energy. Undersea data cables come ashore at Pacific City, and the state is sandwiched by tech clusters in Seattle and Northern California.

More growth is expected in Eastern Oregon, where Amazon has bought up “huge swaths of land,” Weinstein said. Hillsboro could see more growth if an effort to expand its urban growth boundary is successful, he said.

Meanwhile, data centers face political opposition from some critics who blame the industry for sharp rises in utility bills and water usage. The Oregon Legislature this month approved a one-year moratorium on property tax incentives for new data centers.

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Amazon‘s massive PDX9 distribution center in Troutdale has sold to a San Diego-based real estate investment firm for $113.5 million.

At 857,379 square feet, the distribution center is one of the largest buildings in the Portland metro area to ever change hands, according to CBRE. It represented the seller, Clarion Partners, a major investor based in New York City.

The buyer was CIRE Equity. The California firm owns several other Oregon properties, including 829,087 square feet at 224 Logistics Park in Milwaukie, and others in Hillsboro and Eugene.

The property “is one of the most significant industrial transactions in Oregon this year — if not the largest,” CBRE’s Brett Hartzell, who along with Chris Reeves represented Clarion Partners, stated in a news release. “With few comparable assets in the region, its scale, strategic location and modern design set it apart. The long-term lease at favorable rates further enhances its value, making this a truly exceptional investment opportunity in the Portland market.”

The sale equates to $132.38 per square foot. The property, developed by Trammell Crow Co. and built by Sierra Construction Co., is part of the Troutdale Reynolds Industrial Park. Amazon’s neighbors at the former brownfield development include FedEx, C&S Wholesale Grocers, Bonneville Power Administration and NextEra Energy Resources.

“We’re certainly looking forward to working with them,” Port of Portland Development Manager Chris Damgen said of the new ownership.

The industrial park still has three undeveloped lots.

CIRE Equity did not respond to a message seeking comment. The firm operates the CIRE Real Estate Income Trust. CBRE’s news release stated that the acquisition “reflects CIRE’s ongoing commitment to strategic growth and its ability to capitalize on opportunities that deliver long-term value for investors by combining income generation with capital appreciation.”

The building is on a 73.7-acre lot and features 41-foot clear heights, ample parking and electrical resources.

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A local developer has closed on a Southeast Portland property and plans to build two multifamily buildings with 204 apartments.

Seneca Development Co. snatched up the property at 2440 S.E. Cesar Chavez Blvd. for $3.5 million, or $75 per square foot. The developer plans to build 127 residential units with ground-floor retail on the former Rite Aid site. Another 77 units are planned to be built along Southeast Caruthers Street.

“We’re excited about the opportunity this project brings to the neighborhood,” Seneca Development partner Michael Hamilton said in an email.

The project, estimated to cost $50 million, is being designed by Josef West of West Architects in Beaverton. Construction is expected to begin in spring 2026.

Seneca was represented in the transaction by Sean Milligan and Matt Dodd of CBRE, and the seller, a limited liability company linked to Tim Small of Portland, was represented by Vinny Small of VCS Realty.

Seneca was founded in 2020 by industry veterans Hamilton, Bryant Jaksic and Andy Schreck. The group previously developed The Robert Apartments, a 55-unit building in Albina.

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Office users nationally said they expect to grow or maintain their footprints as in-office attendance continues to improve, according to a CBRE survey.

Office occupants’ expectations are “trending towards growth,” said Julie Whelan, an office occupancy analyst at CBRE.

Forty-three percent of respondents said they expected to expand their office space, while only 33 percent expected to use less space. The remainder, about one-fourth of respondents, expected their office space to remain the same.

The results from CBRE’s , released Monday, suggest the office market is continuing to gradually strengthen as it emerges from the pandemic-era doldrums.

The survey drew responses from 185 executive office occupiers in North America.

“We feel very strongly that this data gives us great sentiment about what our office markets are going to do over the coming years,” Whelan said.

Office analysts continue to see a trend of tenants chasing top-quality space. Many office users are “upgrading but downsizing” as they adjust to hybrid work policies, Whelan said.

The tight supply in the prime segment is only expected to grow scarcer as the construction pipeline is poised to deliver little new office space in the foreseeable future. The U.S. construction pipeline in the second quarter was about 21 million square feet.

“We’re going to end up this year with the lowest amount of office space delivered in a calendar year in the last decade or so,” said Manish Kashyap, CBRE’s global president for leasing.

Few tenants are trading down for more space. Instead, companies seek centrally located offices with excellent transportation options and a strong complement of amenities, and they’re willing to squeeze into smaller spaces as needed, Kashyap said.

“The dichotomy in the market is the scarcity is actually in better located, highly desirable offices,” he said. “That’s where the challenge is.”

Most companies have settled into a hybrid work schedule, with offices bustling midweek but more employees choosing to work from home on Mondays and Fridays, CBRE analysts said.

“A lot of American offices feel awesome on Wednesday at this point, but they do feel pretty pokey or uninspiring on Mondays or Fridays,” said Jamie Hodari, CBRE’s chief executive officer of building operations and experience. “I have found very few companies that have found a way to crack that particular code.”

More companies are tracking office attendance, with 69 percent of respondents monitoring office use, up from 45 percent a year ago.

“These increases show that companies have made significant progress on establishing a new baseline for work habits and office attendance after five years of adapting to hybrid work,” Kashyap stated in a news release.

Office attendance averages 2.9 days per week, a figure that continues to lag pre-pandemic levels.

The use of amenities to attract tenants has skyrocketed. Since 2021, CBRE has seen a 56 percent increase in office space allocated to amenities, said Lenny Beaudoin, the firm’s executive managing director for global workplace, design and occupancy.

Office tenants are looking for strong public transportation, ample parking for motor vehicles, strong food and beverage options, and good indoor air quality, the analysts said.

Evidence of improved sentiment among North American office users comes as Portland’s market has continued to lag. Office vacancies have climbed for 11 consecutive quarters, and set record highs, according to Kidder Mathews.

Portland saw 235,192 square feet of negative net absorption during the second quarter of 2025, according to CBRE’s most recent report. Vacancy rose to 26.6 percent but varied widely by submarket.

Tigard and Clackamas recorded less than 12 percent vacancy, while Portland’s central business district and Northwest Portland had more than 36 percent.

Rents in the Portland area rose to $33.11 per square foot on average. The average asking rent for class A space rose to $38.18 per square foot, while class B commanded $29.08 per square foot on average.

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Astoria’s Pier 39 has hit the market, offering more than 110,000 square feet of mixed-use space on the Columbia River.

The property houses 26 tenants, including Rogue Pier 39 Public House, a coffee shop, a financial planner and the Hanthorn Cannery Museum, in a cluster of low-slung buildings with reddish-orange roofs east of downtown Astoria. The commercial space is 42 percent occupied, according to CBRE, the listing agent.

The listing also encompasses an adjacent 2.06-acre parcel. The land is zoned for multifamily, hotel, retail or mixed-use development, and is the last undeveloped site of its kind in Astoria, according to CBRE.

The parcels are located within an opportunity zone and an enterprise zone, offering tax benefits to developers and investors. The site attracts 50,000 visitors a month on average, according to CBRE.

Longtime owner Floyd Holcom is selling the property. An Astoria resident and U.S. Army special forces veteran, Holcom reached out to Wes Bochner, a Portland-based CBRE broker and U.S. Navy veteran, to sell the property. Erin Smith and Trent Steeves are also managing the listing for CBRE.

Holcom purchased the property in 2002 and owns it through a limited liability company, NBSD.

The pier traces Astoria’s economic transformation from reliance on natural resources to a focus on tourism. The pier was home to Hanthorn Cannery, the first and largest tuna cannery in Astoria, which later became a Bumble Bee Tuna cannery.

CBRE has not published a listing price for the property.

“Comparable properties in San Francisco and Southern California have traded at 10x valuations of where we expect Pier 39 to sell, reflecting the massive investment upside with lease-up and redevelopment of remaining original cannery spaces,” Bochner stated in a news release.

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A law firm has signed a lease for a 15,610-square-foot office space in a downtown Portland tower.

Lindsay Hart LLP agreed to terms for space on the 27th floor of the Standard Insurance Center, at 900 S.W. Fifth Ave. The firm will relocate from another downtown tower, the Wells Fargo Center, in November, according to a news release from CBRE, which represented the landlord, Standard Insurance Co.

“This transaction highlights an encouraging trend of leasing activity in downtown Portland,” stated Kevin Kaufman, first vice president at CBRE. “This agreement reflects the growing momentum in Portland’s central business district and the appeal of high-quality office spaces in the area.”

Kaufman and Joe Beehler secured the Lindsay Hart deal for CBRE. Lindsay Hart was represented by JLL‘s Eric Haskins.

Built in 1968, the full-block Standard Insurance Center is among the largest buildings in Portland, with approximately 460,000 square feet in 27 stories.

Law firms and other professional service providers have been stalwart users of downtown office space, which remains mired in a steep downturn.

Davis Wright Tremaine and Fisher Phillips anchor the office space at Block 216, the new tower owned by BPM Real Estate. Miller Nash was among the first tenants at Eleven West, another relatively new building from Downtown Development Group.

Architecture firms have embraced downtown. SERA Architects moved into 42,000 square feet in the Galleria building in 2022. And Populous, a major international firm, will move its Portland group into an as-yet unidentified downtown building in the fall.

In a shift, downtown offices are now attracting more tenants than are the suburbs, according to CBRE. In the first quarter of 2025, downtown Portland office buildings secured more leasing volume for spaces 5,000 square feet and larger than suburban office buildings did.

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Law firm Schwabe, Williamson & Wyatt is remodeling its office space after renewing its Portland office lease at PacWest Center in July. The building, owned by Lincoln Property Company, is located at 1211 SW Fifth Ave.

Schwabe has leased its office space for four decades and was the building’s first tenant. The office space spans 2-1/2 floors. Lincoln Property Co. and CBRE also played crucial roles in Schwabe’s lease resigning, Schwabe stated in an email.

The firm is partnering with project manager JLL, architect Ankrom Moisan and general contractor Lease Crutcher Lewis.

According to Schwabe, the remodel is designed to create a stimulating work environment by incorporating natural light, panoramic city views and a reconfiguration of the space to include open office areas and hallways. A variety of finishes have been selected to maintain the space, while focusing on reuse opportunities for sustainability initiatives.

The updates aim to foster collaboration among Schwabe’s hybrid workforce by reorganizing the workspace to better unite intersecting services, according to a press release.

A $9,340,119 facility permit is currently under review for the alteration with Portland Permitting & Development. Work on floors 16-19 would involve demolition of walls and construction of new ones to create offices, open office areas and hallways. The 17th floor would gain a phone room, an entry area, an IT storage/​work room, a server room, a coffee area, a file storage room and a records room. The 18th floor would gain conference rooms, a restroom, storage rooms, an AV room, a closet, a mail/​print room, a catering kitchen and a break room. It would also involve remodeling the reception area, elevator lobby, restrooms and a shower room. The 19th floor would gain a shower room, a copy room, a switch room, phone rooms, a coffee area, a storage room, a wellness room, a meeting room, a lounge, a bar area and a workroom. It would also involve remodeling restrooms and elevator lobby and connecting stairs with handrails. The work would involve ceiling, flooring, finishes, plumbing and electrical.

Construction is scheduled to start in January, pending issuance of the building permit.

The remodel is expected to be complete in the summer of 2025.

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