Wilting or Renewed Growth for the City of Roses?
By Jacob Ashley
Like many communities in the post-Pandemic world, Portland has experienced challenges in all facets of life, from emergency rooms to classrooms, on the grocery shelves, and at the gas pump. But nowhere in this city are these challenges more evident than the streets of beautiful downtown. A once vibrant scene, bustling with life and day-to-day happenings, is now so often seemingly empty. Or is it?
Julia Freybote, School of Business associate professor of finance and real estate and academic director of the Master of Science in Real Estate (MSRE) program, has sought to understand some of the challenges Portland has faced. Julia surveyed 226 brokers and end users this March, asking them whether they moved in or out of Downtown Portland and, if so, why. In commercial real estate, an end user is the person or company ultimately occupying the space. A broker is a licensed professional who intermediates over the end user and the property owner.
The results are complex, as undoubtedly, many companies are moving out, a number are moving in, and the reasons can vary greatly. Also, changing office culture and attendance practices since the pandemic has encouraged many to downsize their footprint, making a move to a new location more appealing, especially when coupled with downtown realities or tax incentives from other municipalities (BizJournals.com). This diminished office traffic in the area has had a cascading effect on peripheral industries, creating endless challenges for anyone trying to maintain a business at any level.
Regardless, with some of Downtown Portland’s historically anchored firms considering their options, there is only a short window to rectify areas of concern. City Hall has worked toward this by investing in Portland Street Response teams and planned mass outdoor encampments while championing a controversial, council-approved camping ban ordinance, which they believe will help with safety and cleanliness. But advocacy groups believe the latter constitutes cruel and unusual punishment and unreasonably exposes individuals to criminal prosecution, which will certainly initiate an avalanche of litigation. All these strategies could, in theory, provide a form of relief in the short term. Still, survey respondents seem equally concerned with high local taxation, something much more difficult to rectify promptly and one that would require legislation to improve, relying on some who aren’t always business-friendly with their votes.
Though, the horizon is not all doom and gloom. As mentioned, businesses ranging from mom-and-pop to large corporations are taking advantage of tenant-friendly rental market conditions, using this time to get into positions that, in more confident eras, may have taken a generation. Those who manage to weather the storm could, in theory, have front-row seats to a future, revitalized Portland filled with eager residents and tourists overflowing with a desire to relive or create new, incredible memories in a city by which they remember falling in love.
In a region so used to inundations of rain, this deluge of challenging times hasn’t seemed to damper projects of passion, innovation, and industry. Even now, developer Curtis Rystadt is in the early stages of planning his proposed 30-story building on the Burnside Bridge’s west side, an area considered on the front lines of the aforementioned socioeconomic struggles. This project would contradict the area’s 75-foot height restriction and be entirely affordable housing, supplying 728 units for those who earn 60% or less of the area’s median income (BizJournals.com).
Additionally, Expensify, a company headquartered in Downtown Portland, is revitalizing Portland’s oldest food cart block on Southwest 5th Avenue and Oak Street, turning it into a 300-seat beer garden and event space. The area has seen incredible struggles in recent years. Still, CEO David Barrett says, “It’s going to take a lot of sustained, creative effort from all of us to transform the community from its current status into a real mark of pride for the city,” continuing, “But we’re here for the long haul,” proving there is still real love and faith in our city (OregonLive.com).
With these smaller, more localized endeavors, we still have significant developments in multiple stages of planning or completion. Although Portland’s first five-star hotel, the Ritz Carlton, has endured supply chain delays and moved its opening from summer to autumn, it promises incredible economic opportunity and an influx of tourism money. The mayor’s office has also written an official letter of intent to bring Major League Baseball to Portland, suggesting several struggling areas as possible locations for a stadium, infrastructural revitalization, and 10,000 union jobs (JohnConzano.com).
A freshly remodeled Portland International Airport opening shortly (PDXNext.com), Nike founder Phil Knight’s $400 million investment in lower Albina (OPB.org), and a $120 million OMSI District redevelopment project are just a sample list of what Portland has in the pipeline for our near future (OMSI.edu). The Portland Trail Blazers are even adding a G-League team, basing them at The University of Portland’s Chiles Center (GLeague.NBA.com), and there are rumors of a reintroduced WNBA franchise in the works (CBSSports.com). Not exactly the whispers of woe one might expect from a withering city.
The struggles of Portland are far from ideal. Any segment of our community suffering is a weight on our hearts, minds, and prosperity. We have significant battles to fight to ensure equitable access to health and opportunity, and it won’t get easier from here. But with this, we have an unbelievable desire to create, help improve our circumstances, and innovate our way to a brighter, happier future. And if any city and people in this country and on this Earth can do it, it’s us. It’s our beautiful Portland.
For access to Julia Freybote’s full body of research, please email HERE.
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