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Bridging Newsletter, Summer 2016

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Bridging Newsletter, Summer 2016 Summer 2016 Bridging Central Eastside News Covering Important Issues, Trends, and Developments in the Close-in eastside Commercial Areas Table of Contents Project Updates ............................................................................1, 4-9 PROJECT UPDATES The YARD ..............................................................................................4 BLOCK 75 ..............................................................................................4 Wow! I guess that is the first reaction and also a diminished lack of mixed use when looking at the Central East side’s zoned sites that can be acquired. The MILL CREEK & OREGON BALLET ...........................................................4 real estate development and project list office guys can now with the EOS overlay, FOWLER SELLS/ACQUIRES SITE .....................................................4-5 as we head beyond mid 2016. We see spread throughout the district, have many SACKHOFF CONTINUES APARTMANTS ...............................................5 it every day when we travel the close in more chess spots on the board to move TRINSIC CLOSES ON E. BURNSIDE ......................................................5 eastside; cranes in the air; construction their pieces. Incentivized by Portland hav- PLEW DROPS/KILLIAN PICKS UP ........................................................5 trailers; blocked off streets; concrete ing one of the lowest office vacancy rates O’BRIAN GOES SKYWARD ...................................................................6 trucks rumbling around and recently nat- in the U.S. and some headline grabbing JUPITER HOTEL TO EXPAND .................................................................6 tily dressed guys with out of state license news in the last couple years of smaller CLAY CREATIVE ALREADY LEASED ...................................................... 7 plates eyeing sites and buildings. Un- complete companies and larger branches LOCA LEASING UP ................................................................................ 7 doubtedly the Central Eastside is moving of tech firms choosing or looking at Port- TOWNE STORAGE FACELIFT .................................................................8 into a golden time with multiple interest- land for operations, developers are mov- PLANNING COMMISSION CHANGES SE QUAD PLAN.............................1-2 ing real estate projects with cutting edge ing to fill the need. I see office nudging VALUATIONS GETTING CRAZY ..................................................................3 design and materials. Apartments reach- apartments out of the development lead KNOW OCCUPANCY & SEISMIC ISSUES ..............................................9-11 ing into the air; new restaurants; high tech in certain core areas. The Central Eastside The corner kitchen ........................................................................11-12 tenants signing leases in new creative is well positioned for this wave as its funky buildings; glassy smaller industrial office and cool building stock; underdog seedy New food options, Cider Riot New Space .................................11 buildings hugging smaller corner lots; a (in a good way) entrepreneurial milieu and Wayfinder Beer, morrison hotel gone/home slips in new grocery and hardware store; newer access to services, good food/beverage New Ramen world, New English Soccer Pub and bigger breweries and distilleries; This options; promity to the downtown core Big Name seattle chefs ..................................................................12 robust current of growth does not seem and surrounding residential areas and Right 2 dream too ................................................................................13 to be slowing down as we may head in good multi-mode transportation options, Project updates 2 ......................................................................... 14-17 the next few years from class 3 rapids into make this neighborhood ripe for office Fischels, 811 SE Stark, Uncorked Studios, some major exciting Class 4 hydraulics development. Oh almost forgot, honorable City skips a step ............................................................................ 14 of real estate development and invest- mention goes to another burgeoning prod- PDX Compressor, Co-working spaces, Beam finishes ..........15 ment. While apartments dominated this uct type: HOTELS! You knew it was going Family Markets ..........................................................................15-16 latest round of building, the development to happen, hotels are on fire on the West- Trimet ................................................................................................ 16 gun sights have turned a bit more on to side (and nationally) with no less than 15 Tevis .............................................................................................. 16-17 the creative or industrial office category. hotels planned or under construction in Mackenzie’s Building ..........................................................................17 Don’t get me wrong, apartments are mak- the Pearl and downtown so some “leak- ing a big imprint on the Central Eastside age” into the Central Eastside is inevitable. OMSI Campus ...................................................................................18-20 and there are more coming but there is Let’s take a look at first at the apartment Harsch Going Tall...............................................................................20 a slight cooling breeze flowing into that category and projects that are rising or Clinton triangle ................................................................................. 21 sector that is bolstered by some remote soon to be spurting out of the ground. Parking ............................................................................................22-23 sonic rumblings of the term “saturation” ODOT BLOCKS UPDATE ...........................................................................24 (continued on page 4) Planning Commission Made Changes to Southeast Quadrant Plan Whew! Is it over yet? Well yes, but given I am not talking about the Portland incessant rain, but rather the 5 year plus Central City Plan 2035 and for us over here on the eastside, the Southeast Quadrant Plan. The dozens of meetings and multiple open houses entail- ing tons of paper documentation are mostly over with the City of Portland adopting the Southeast Quadrant Plan last July. A brief history. The Central City Plan 2035 is an update of the original plan from 1988. A lot has changed since then and as the city says about those changes and the plan on their website: The Central City plays a crucial, unique role in the health and well-being of the city of Portland and the region. New challenges now confront the Central City. To continue to reinforce its key role for the regional economy, land use planning and air quality these challenges need to be addressed. They include climate change, jobs, housing, equity, educational and workforce training, congestion and avenue to provide opportunities for a growing and diverse population. Central City Plan 2035 will be the primary guiding policy document for the Central City with goals, policies and tools designed to make Portland’s urban core more vibrant, innovative, sustainable and resilient. (continued on page 2) (cont.) Southeast Quadrant Plan It started with a more satellite view plan- adds to congestion, parking issues, lack renovated and repurposed occurredin the ning process with the adoption of the The of affordability and stressing the trans- last 6-7 years to accommodate a grow- Portland Plan in 2012. That was followed portation network and also in conjunction ing cadres of firms from a whole host of over the next 3 years by a much more pre- potentially crowding out freight and other different types of uses and companies cise, specific and detailed process of the 3 uses thus making it difficult for existing in: tech, design, food/beverage, textiles, individual Quadrant Plans of the Central and new industrial businesses to operate non-profits, services and more proved the City with the Southeast Quadrant Plan and survive. On the other side: Those who point. which covers the Central Eastside being want to see the Central Eastside having last. 30 stakeholders (businesses; property the ability and flexibility to accommodate Industrial Office (EOS) Everywhere owners; neighborhood groups; non-profits) a wider and higher degree of uses of the were involved and for over three years, “New Economy” that is attracted to vi- When the Stakeholder Advisory Com- design charrettes, open houses, com- brant central city cores. These more dense mittee came to their conclusions and sent munity walks, building tours, business and less industrial uses and companies, their recommendations to the Planning forums, working group meetings, along they believe will bring more and better Commission it was basically a draw in my with input from the CEIC, neighborhood paying jobs, innovation, entrepreneur- mind as no one like usual got everything. associations, and the Portland Business ship and vitality to the neighborhood, the The industrial preservationists wanted Alliance took place and resulted in a draft central city and the metro region. Both to limit substantially application of the plan completed late spring 2015. As it says sides agreed substantial zone changes EOS and the other side wanted to see it in the plan: Stakeholders
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