The industrial real estate market has entered a “period of recalibration” after rapid expansion since 2020, according to a new report from Cushman & Wakefield.

Developers have delivered more than 171 million square feet in warehouse, distribution and manufacturing space in the Pacific Northwest since 2020, and vacancies have risen as a result.

In the Portland market, vacancies have risen from 2.7 percent in the third quarter of 2023 to 7.8 percent in the first quarter of this year, Kidder Mathews reported.

“After an unprecedented period of growth, the Northwest industrial market entered a period of recalibration,” Cushman & Wakefield research manager Wescott Owen stated in a news release. “Developers are taking a more disciplined approach by prioritizing projects with clear tenant demand and long-term fundamentals, which will ultimately support a healthier and more sustainable market.”

Power availability is driving site selection as logistics operations compete with data centers, according to the Cushman & Wakefield report.

Tariffs have hit import-driven and export-driven industrial areas harder, with port-adjacent properties facing hurdles.

“A couple of years ago, if you could get a project built, you could feel pretty good about getting it leased pretty quickly,” said Brent Hedberg, president of Specht Development. “Today, demand is certainly slower and more selective. It’s not super-consistent. It’s low in some areas and high in others.”

Demand remains steady in Clark County, Washington, and the Sunset Corridor, Hedberg said. Close-in Portland, Airport Way and the Columbia River corridor are facing more challenging conditions.

On Thursday, Colliers revealed that Meadowlark Industrial Center, a 154,646-square-foot facility in Cornelius, had sold for $30 million, or approximately $193 per square foot. The brokerage stated that the sale demonstrated “investor appetite” for the Sunset Corridor submarket.

Tenants have become more specialized and are more likely to demand build-to-suit spaces than empty boxes built on speculation, Hedberg said.

A recent Specht project for Grainger, an industrial parts distributor, illustrates the change. The 533,000-square-foot warehouse in Gresham was built with robots in mind, including ultra-flat floor slabs, additional power and no skylights.

“The more companies look at automated robots to pick stuff, those are tougher to fit in a speculative empty box,” Hedberg said. “There are unique requirements.”

Speculative development still has a place, particularly for tenants who don’t want to endure long wait times and entitlement risk on a build-to-suit project, Hedberg said.

Tenants want taller, modern buildings with adequate space for trucks and LED lighting throughout, Hedberg said.

“There’s a bifurcation,” he said. “If you have second-generation space that’s just not quite what people are looking for, you’re having a little harder time.”

Owen also forecast that targeted future development could succeed.

“The recent slowdown may prove to be an overcorrection in certain segments,” he stated. “For developers and investors who can align product with evolving tenant needs, there will be opportunities as the market stabilizes and moves into its next phase.”

Broadly, tenants are wary of geopolitical disruption and — in Multnomah County — high taxes, said Jordan Schnitzer, president and CEO of Schnitzer Properties.

“When I started out decades ago, I didn’t worry about what was going on in China or Russia,” Schnitzer said. “People worry about that now. The ICE raids are scary.”

High interest rates and unrest are causing consumers and businesses to act more cautiously, Schnitzer said.

“People are just worn out from what’s happening nationally now and internationally,” he said. “What we need is consumer confidence so the consumer can buy the goods and services our tenants offer.”

The post Industrial development in the region slows after recent boom appeared first on Daily Journal of Commerce.

Specht Development Inc. has sold an 11-acre truck maintenance facility in Milwaukie to a Philadelphia-based real estate investment firm for $10.45 million.

Alterra Property Group snapped up the property, which has a 19,105 -square-foot building and a separate 1,863-square-foot drivers’ lounge, from a Specht-affiliated limited liability company.

Alterra and Specht last week jointly announced the transaction, which closed in June. The buyer and seller said the sale “underscores the robust demand for high-quality industrial outdoor storage facilities and the sparse availability of land in the Portland metro area. The successful sale of this site is a testament to both.”

The property has been preleased to an undisclosed tenant. Capacity Commercial Group represented both sides in the transaction.

Specht completed the property, known as 224 Logistics Park, in 2023. The property at 6433 SE Lake Road in Milwaukie was developed by a joint venture of Specht and Ares Management L.P. real estate funds.

Alterra, based in Philadelphia, disclosed in May that it had raised $925 million to fund industrial real estate purchases in only eight months, industry publication PERE News reported.

The post Specht sells truck facility for $10.45 million appeared first on Daily Journal of Commerce.

PROJECT: Skanska USA Building Inc. interior design

LOCATION: 1010 Flanders Building (1010 N.W. Flanders St., Portland)

SIZE: 17,243 square feet (fourth and fifth floors)

COST:��$6,360,000

CONSTRUCTION START DATE: September 2019

CONSTRUCTION END DATE: April 2020

BUILDING OWNER: Specht Development Inc.

ARCHITECT: RDC

CONTRACTOR: Skanska USA Building Inc.

MECHANICAL: Alliant Systems

LIGHTING CONSULTANT: Oculus Light Studio

SIGNIFICANCE OF PROJECT: This 100-year-old building’s interior now has comprehensive features to promote environmental health. These include: flexibility for workstation distancing, natural daylighting, dual entry alternates, reverse osmosis water filtration, and variable air volume systems. RDC designed full workplace tenant improvements on the fourth and fifth floors with a connective, open staircase. The space serves as the primary area for administrative functions and collaboration for Skanska’s Portland office; it’s designed to accommodate 80 team members. The open work space features half dividers, individual desks and half personal cabinets. Flex seating in a “hot desk” format accommodates visitors or day use. A roof deck overlooks the Portland skyline. The elevator lobby at the fifth level serves as the hosting level and event space with rooms including phone booths, a library, an open kitchen and a wellness room with some workstations. The central training room was designed for flexibility so that it can host large social gatherings. Other design highlights include a kitchen island design to maximize seating, with bistro-style tables able to connect to the island or be removed and stored elsewhere. The reception desk features two predominant materials: concrete and wood. The concrete reflects Skanska’s role providing concrete materials for its many construction projects. The wood echoes the regional office’s Pacific Northwest forest surroundings and pays tribute to the historic buildings in Portland’s Pearl District. “We collaborated with RDC to co-design and build out our new office space, as they incorporated existing architectural features from this historic Pearl District building, while adding a mixture of flexible work spaces,” stated Tim Johnson, Skanska executive vice president and general manager. “During the pandemic, many employees worked remotely or on the various project sites. As we prepared for the main office employees to return, we’ve created new guidelines to ensure a safe and healthy workplace … including digital social distancing personal units and a fully modernized HVAC system with comprehensive air filtration technology.” The 1010 Flanders Building originally was known as the Ballou and Wright Building and was completed in 1921. It is on the National Register of Historic Places.

“Building Blocks” is a 91��Ƶ feature that spotlights noteworthy projects either under construction or approaching the start of construction. To submit a project for consideration, please visit: .

The post Building Blocks: Skanska USA Building’s Portland office appeared first on Daily Journal of Commerce.

Specht Development and Colas Development Group are teaming up to develop a 48-acre section of the Gresham Vista Business Park.

The Port of Portland Board of Commissioners on Wednesday approved a master development agreement with the two local companies. The partnership has the option to buy or lease Gresham Vista Lot 5 from the port, which owns the property.

“We have the option to buy; the port would prefer a long-term lease,” said Greg Specht, CEO of Specht Development. “Every deal is different. We have the flexibility to go in either direction.”

The Specht-Colas partnership will seek a user – ideally a manufacturing business, Specht said. “This deal with the port does not provide for speculative development,” he said. “It’s build-to-suit.”

The companies have formed a joint-venture entity, GV5, a limited liability company.

Specht Development and Trammell Crow previously built projects in Gresham Vista Business Park. The property also includes a synthetic diamond manufacturing plant built for De Beers Group by U.K.-based Gardiner & Theobald.

Colas Construction previously worked for Specht Properties on the renovation of the 220 NW 2nd Building to accommodate Prosper Portland‘s new offices.

“They did a bang-up job,” Specht said.

Andrew Colas, president and CEO of Colas Construction, did not return a message seeking comment. In a news release, he stated, “We are thrilled to partner with Specht, the Port of Portland and the city of Gresham on this unique development project. We believe this project will set a new standard in the importance of BIPOC Development Corporation inclusion in large-scale developments and could not be more excited to partner with Specht in this pursuit.”

The project will have strict diversity targets and require high-wage jobs. The average wage target is $53,890.

“That’s a high bar,” Specht said.

Predevelopment of the project comes as the industrial sector has been a bright spot in a weakening commercial real estate market. Specht, who has long maintained that a dearth of available land restricts industrial development in the Portland-metro area, believes Gresham Vista Lot 5 is special.

“It’s one of the best remaining greenfield sites for industrial development in the Portland metropolitan area,” he said.

The post Development deal reached for metro-area property appeared first on Daily Journal of Commerce.

Vista Logistics Park, a three-building industrial asset in Gresham, has sold for $93.25 million in a high-water mark for the Portland metro area’s industrial sector.

Black Creek Group, based in Denver, snapped up the east Portland metro industrial park for $127.18 per square foot.

The sale marks a lucrative exit for Specht Development, which built the industrial park on speculation in a single phase, and its venture capital partner, New York Life Real Estate Investors, a subsidiary of the insurance giant.

“This sale reflects the continued attractiveness of the Portland metropolitan market,” said Greg Specht, chief executive of the Portland-based development firm.

The 733,232-square-foot property was built on land that was purchased from the Port of Portland in 2016 for $9.28 million. Construction soon began, and Vista Logistics Park was completed in 2017.

Specht hired CBRE to market the property. After it didn’t attract the offers the owner wanted, the listing was pulled back. But the property continued to attract additional tenants, and this fall, Black Creek made an unsolicited offer, Specht said.

Limited supply in the industrial market helped push the price up. “The limiting factor of available land within the (urban growth boundary) puts upward pressure on pricing,” Specht said.

Vista, located at 32-198 S.E. 223rd Avenue in Gresham, was 86.5 percent leased by the time the sale closed. The property is leased to Medline Industries, Imperial Brown Inc., Samuel, Son and Co., and Fully, a furniture company. Capacity Commercial Group served as the leasing agent.

The sale comes as population and job growth provides strong market fundamentals, and logistics becomes ever more important.

“Most institutions are thinking they’re under-allocated to industrial in their portfolio, so they’re aggressively looking to add industrial,” said Paige Morgan, senior vice president at CBRE.

The tight industrial market has led to more growth south and north of Portland along the Interstate 5 corridor, and also has made infill redevelopment more attractive, such as Prologis‘ move to build on the Portland Meadows site, Morgan said.

“Given the UGB here, we’ve seen development moving further and further out. There’s not much more room to go moving east, so we’ve seen more growth moving north and south,” Morgan said.

“Redevelopment of infill sites has become more feasible, because tenants are willing to pay more to be closer in,” she added.

CBRE’s team on the deal included Morgan in Portland, Brett Hartzell in Seattle, Darla Longo, Eric Cox, Barbara Perrier and Val Achtemeier in Los Angeles; and Rebecca Perlmutter-Finkel in San Francisco.

The post Gresham industrial park sells for $93 Million appeared first on Daily Journal of Commerce.

For a Portland office building of a certain age, 2019 seems to be the time to get that face-lift.

The Wells Fargo Center, Portland’s tallest building, completed in 1972 and purchased by Starwood Capital Group in 2017 for $188 million, will receive new canopies and landscaping. The neighboring data center structure will get a new lobby and rooftop deck, and a drive-through bay will be removed.

In Northwest Portland, One Pacific Square will get an extensive renovation to the lobby and plaza areas with an eye toward attracting a tenant to replace NW Natural, which will vacate approximately 180,000 square feet some time in 2020 for new space in the 250 Taylor building. The older 13-story building, completed in 1984, was purchased by New York Life and local partner Specht Development in January 2018.

“We believe we can bring this building to life after the gas company leaves at a price that is very competitive,” said Greg Specht, chief executive of Specht Development.

Office repositioning projects are not new, but a long period of economic expansion, growing in-migration to Portland, existence of institutional investors flush with capital, and competition from newly constructed office buildings has resulted in a rush of renovations.

“You’re seeing this final push,” said Jake Lancaster, a managing director for Jones Lang LaSalle in Portland. “The majority of the buildings that have been built over the last 20 to 30 years have been getting upgrades or improvements. Most of the buildings have been traded or sold. The market has proven that by making the investment, the tenants will come and they will pay the rates to be in upgraded real estate.”

The raft of projects is characteristic of a mature real-estate cycle, analysts said. With newer office properties in desirable locations earning lease rates of $36 per square foot or more, owners of older properties are racing to catch up and hike rates to match or come close.

At the same time, tech companies want different office environments than the old-guard law and accounting firm spaces in many of Portland’s office towers. Cubicles are out, and Silicon Valley-inspired open-plan offices with foosball tables and baristas are in.

Portland’s office market saw 9 percent rent growth in 2018, according to JLL. Vacancy rose to 13.1 percent. Absorption was negative, with 306,780 square feet added to the market as office users including Wells Fargo, Jive and the Art Institute of Portland vacated office space.

First-quarter 2019 data was not yet final, but absorption for the period is expected to be slightly positive, according to JLL.

Not only older buildings are being targeted for renovations. Tanner Point, formerly known as 9North, is set to undergo a retail makeover and other interior renovations. The eight-story North Pearl District property was completed in October.

CBRE Global Investors purchased the 182,851-square-foot building from Williams & Dame Development and Global Miller Properties for $76.6 million shortly after it was delivered to market.

Kevin Kaufman, a CBRE vice president, said the investment arm underwent a “data-driven process” based on national and local trends in deciding to reposition the newly constructed building to attract tenants.

“We think that type of approach here will help Tanner Point,” he said.

For new construction, several major projects are on the way, including the office portion of the Press Blocks that will bring more than 193,000 square feet of office space to market. Also, District Office in the Central Eastside from Beam Development and Urban Development + Partners will add approximately 72,000 square feet and 7 S.E. Stark from Harsch Investment Properties will have about 70,000 square feet of leasable office space.

“There has been a tremendous push in the new construction pipeline and deliveries,” Lancaster said.

Further out, construction of the 35-story Block 216 project from Walter Bowen’s BPM Real Estate Group is expected to begin this spring or summer. The tower-and-podium project would bring approximately 167,000 square feet of office space to market.

Construction of Eleven West, another mixed-use project from Gerding Edlen Development and Downtown Development Group at Southwest 11th Avenue and Washington Street, has not begun despite design approval being given in December 2017. Eleven West would add 110,000 square feet of office space.

The ample development pipeline is causing some observers to question whether Portland’s office market can absorb all of the new space.

“There is way too much office available,” said Jordan Menashe, principal at Menashe Properties, a Portland-based property management and development company. “It is insanity.”

Menashe said there’s a mismatch between the mostly smaller prospective tenants in the marketplace and the large spaces being offered.

“It’s all the same amenities, and the same floor plate sizes, and it’s all not catering to the Portland tenant,” he said.

Yet for now, rent growth remains strong and investors keep coming. On March 15, Intercontinental Real Estate Corp of Boston announced it had acquired Heartline’s five-story office and retail building in the Pearl District totaling 72,130 square feet. The sale price was not disclosed and was not yet available in Multnomah County records.

Another major office trade is anticipated with the Bill Naito Co. expected to sell the Montgomery Park building in Northwest Portland, with 850,540 square feet, to an institutional buyer. A repositioning project could follow.

“There’s tons of institutional money out there, and it has to go somewhere,” Menashe explained. “And Portland still is affordable compared to Seattle, San Francisco, Los Angeles, downtown Denver.”

Kaufman also said he expects the office market to remain healthy.

“I don’t think we’re headed to a point – in the Portland market anyway – where you will see massive spikes in vacancy,” he said.

Lancaster said the development pipeline is poised to slow after the current round, aiding absorption of the new space.

“Our market is about slower and incremental absorption,” he said. “That will be the case as well with this round of absorption through 2020. The majority of the capital that’s invested in new construction, it’s very patient capital.”

The post Revving up renovations to tempt tenants appeared first on Daily Journal of Commerce.

Ares Real Estate Group and Specht Development Inc. have jointly acquired 62 acres of industrial property in Milwaukie for $48.5 million, they announced Wednesday.

The 992,190-square-foot property includes a warehouse, distribution and manufacturing space, freezer and cooler space, and excess trailer storage, according to a press release. A separate, 48,000-square-foot office building also sits on the parcel.

The property, on Southeast Lake Road, currently serves as a distribution center for the Supervalu grocery wholesaler and retail chain. Supervalu will continue to use the facility until the end of the company’s lease, the press release stated.

When the lease expires, the new owners plan to upgrade the property by installing new roofing and dock doors, performing structural improvements and more.

“The investment makes sense for many reasons,” Specht Development CEO Greg Specht stated in the press release. “Both our acquisition costs and our expected renovation costs will allow for extremely competitive rental rates to be offered to future tenants. General industrial market vacancy rates, combined with historically low vacancy in the Clackamas and Milwaukie area, bode well for this property’s future absorption.”

Ares Real Estate Group partner Jay Glauback added, “This acquisition fits the Ares Real Estate Group’s longstanding investment strategy of identifying high-quality, infill properties in need of substantial repositioning and improvement.”

ACORE Capital, a large commercial real estate finance company, originated the acquisition loan, while JLL served as capital markets broker.

Ares Management LP is a publicly traded, global alternative asset manager with approximately $125 billion of assets under management and 18 offices in the United States, Europe, Asia and Australia.

The post Milwaukie industrial facility sells for $48.5M appeared first on Daily Journal of Commerce.

Portland industrial developer Specht has gained a major tenant for its Vista Logistics Park in Gresham.

Medline Industries Inc. has agreed to take 297,501 square feet at the newly constructed, 37-acre industrial development. That will leave Vista with 435,731 square feet available, divisible down to approximately 37,000 square feet.

Medline is the nation’s largest privately held medical supplies manufacturer and distributor. The company’s move to Gresham gives Specht’s joint venture with New York Life Real Estate Investors, Madison-Specht Vista Logistics LLC, a key tenant.

The development was built on speculation as distributors have sought to snap up limited warehouse inventory.

Medline was represented in the transaction by Tyler Shiels of Jones Lang LaSalle and Michael Morgan of Colliers International. Madison-Specht Vista Logistics LLC was represented by Dave Ellis, Don Ossey and Tom Knecht of Capacity Commercial Group.

Demand for industrial space in Portland has been strong, with 2.2 million square feet leased during the second quarter, according to JLL. Leases of new construction have gone for 50 cents to 60 cents per square foot per month on a triple-net basis, with office surcharges of 90 cents to 95 cents per square foot, the research group reported.

The post Firm leases sizable Gresham industrial space appeared first on Daily Journal of Commerce.

An Old Town Chinatown office tower will get an update now that an institutional investor has purchased it.

The distinctive tower at 220 N.W. Second Ave., near the riverfront, has served as NW Natural‘s headquarters since the building was completed in 1984. However, the utility company is preparing to move into the office tower being constructed at Southwest Third Avenue and Taylor Street, so the building at 220 N.W. Second Ave. became available for repositioning.

Menlo Equities sold the building to an undisclosed institutional buyer who was advised by local partner Specht Development Inc., according to a news release from Holliday Fenoglio Fowler, which brokered the sale. The price was not disclosed and had not yet appeared in public records. Menlo Equities previously bought the building in January 2015 for $48.5 million.

The new owner plans to modernize the lobby, add first-floor amenities to be shared by tenants and activate existing retail spaces, according to HFF.

The HFF investment advisory team included director Logan Greer, senior managing director Michael Leggett, senior managing director Gerry Rohm, senior director Ben Bullock, director Dave Otis and analysts Jeff Hodson and Kevin Freels.

The post Upgrades ahead for downtown Portland tower appeared first on Daily Journal of Commerce.

Amazon, one of the nation’s largest companies, is increasingly making its presence felt in the Portland area with a major industrial footprint and intriguing moves in the office and retail markets.

The company has firmly planted its flag in Oregon’s largest city, and Portland is among the hopeful applicants to host Amazon’s massive second headquarters.

What was once merely a book-selling website located in Seattle is now increasingly a physical force in local economies throughout the nation. And in Portland, Amazon’s dizzying pace of development has sent shockwaves through the industrial market, where it’s far outpacing any other client.

The company is surrounding the Portland-metro area with massive distribution facilities. Consider:

Amazon last year opened a 303,000-square-foot sortation center at Hillsboro’s Majestic Brookwood Business Park.

Last month, Amazon announced it would build a 1 million-square-foot facility on a Port of Portland parcel on North Lombard Street, with Trammell Crow Co. as developer.

In Troutdale, Amazon is building an 855,000-square-foot fulfillment center, also with Trammell Crow.

And in Salem, Capstone Partners is the developer of a 1 million-square-foot facility where Amazon will distribute large items such as gardening tools and pet food.

Individually, these large projects are a boon to the developers, contractors and subcontractors who all benefit from the retailer’s local growth spurt. Collectively, they indicate Amazon will be a major force in Oregon’s 21st-century economy, employing thousands of workers, spurring development and changing how consumers shop.

Amazon’s wave of industrial development is coming amid a constrained supply of industrial land. Much of the Portland area’s industrial land is spoken for, and Oregon’s urban growth boundaries make expansion difficult.

In comes Amazon with more than 3 million square feet of industrial development in the past two years.

“Amazon clearly is a major player in the market and is affecting the supply side,” Specht Development CEO Greg Specht said.

Amazon’s logistical strategy is designed to get packages to customers in hours, rather than days, said Tom Forte, a senior research analyst for D.A. Davidson. Amazon is gradually adding to its Prime Now service across the country.

Forte noted that Prime Now is available in New York City, where’s he’s based, but not at Stanford, where he’s currently working. Forte predicted Prime Now will spread first to major metropolitan areas, and then nearby suburbs.

“They’ll add that capability over time,” he said.

Amazon offers Prime Now in Portland, with two-hour delivery of Amazon products, groceries and local restaurant takeout. The new fulfillment centers will help Amazon promptly deliver a range of products, Forte said.

Amazon’s fulfillment centers are an important part of its Prime service, spokeswoman Ashley Robinson stated in an email message.

“There are a lot of contributing factors that go into our thought process on where to place a new fulfillment center,” she stated. “Most importantly, we want to make sure a fulfillment center is placed as close to the customer as possible to ensure we can offer a great Prime service and fast shipping speeds to customers. We also look at the workforce and we’ve found great talent in abundance in both the Salem and Portland communities.”

In some ways, Amazon is mimicking and furthering the logistics of Walmart Inc., which was known to build warehouses and retail stores in clusters.

Amazon’s strategy in recent years has been to “build first, buy second,” Forte said. In Portland, the company has done both.

Amazon bought into Portland with Elemental Technologies. Now AWS Elemental, the company was acquired by Amazon and tucked into its profitable Web Services division. Elemental has its office in the former Oregonian building at 1320 S.W. Broadway.

Amazon is rumored to be seeking additional office space in Portland. Some brokers have suggested Broadway Tower, a building now under construction that will offer 175,000 square feet of office space, would be a natural fit. The office space is represented by Kidder Mathews.

The office space at Broadway Tower is approximately 50 percent leased, said Kevin Joshi, senior vice president at Kidder Mathews. He could not disclose the tenants, he said.

Joshi said he expects the office space to be more than 90 percent occupied when Broadway Tower opens in October 2018.

Amazon is well-known for its use of nondisclosure agreements for local firms it works with, and several of its local business partners did not respond to requests for comment.

Amazon has also dipped its toe into brick-and-mortar retail sales, with the Portland-metro area again in the forefront. Amazon in 2016 chose Washington Square in Tigard for the third location of its brick-and-mortar bookstore.

Amazon recently opened a delivery center in south downtown to speed shipping to Prime customers.

Amazon also expanded its presence in Portland with its acquisition of Whole Foods. The grocery chain has eight Portland-area locations, and another in Vancouver, Washington. Amazon announced in June it would acquire Whole Foods for approximately $13.7 billion and integrate the grocer into Amazon Prime.

Portland was one of 238 cities to submit a proposal for Amazon’s second corporate headquarters by the Oct. 19 deadline. Greater Portland Inc. is leading the effort to woo Amazon. The centerpiece of Portland’s pitch is the soon-to-be-vacant U.S. Postal Service property.

Yet Amazon’s needs may exceed the space available in Portland. Amazon says it wants a second headquarters equal to its base in Seattle, where the retailer has an astonishing 8.1 million square feet, spread across 33 buildings.

In total, the Portland-metro area has only 27.2 million square feet of Class A office space, with a 9.1 percent vacancy rate, according to a Jones Lang LaSalle report.

Robinson declined to comment on the HQ2 process beyond Amazon’s issued materials.

Portland’s Broadway Corridor master plan, a guiding document for development of the Postal Service site and surrounding blocks, calls for building only 582,237 square feet of office space as part of 3.8 million square feet of total development. That’s smaller than one lease Amazon confirmed in downtown Seattle earlier this month, with the company reportedly taking 722,000 square feet in Rainier Square, a skyscraper now being built.

Amazon expects to spend up to $5 billion in construction for the second headquarters, which could eventually be used by up to 50,000 employees. For Portland, that raises the question of where the employees would be housed in the metro area’s already-tight housing market. Portland had fewer than 6,000 active single-family home listings in September, according to the Regional Multiple Listing Service (RMLS).

Geographic proximity will be a major factor in Portland’s bid, for good or ill. That hasn’t stopped even cities in Washington and British Columbia from trying.

Portland will point to its burgeoning tech scene and cheaper labor pool as selling points.

“They’ve been so successful in Seattle, it’s driven up the cost of talent,” Forte said. “Now they either need to diversify or spread out.”

The post Amazon putting its stamp on Portland appeared first on Daily Journal of Commerce.