The office market posted solid gains in 2005, building on an economic recovery that took hold in 2004. 2005 saw the overall vacancy rate drop two points to 8.9 percent. Large space users found fewer options in the central business district and indeed, one major tenant left Portland for Washington County.
Equity Office said in November it plans to develop a 15-story Class A office building in downtown Portland at Southwest First Avenue and Main Street.
The elevators at Montgomery Park are filling up faster these days, which could be good news for Portland’s older office buildings.
Once a slow-moving behemoth, San Francisco’s family-owned Swig Co. completed nearly $1 billion in real estate transactions last year and plans 2006 acquisitions worth hundreds of millions on top of that.
In technical terms, 2005 was the year of cap rate compression in commercial real estate investing. Less technically, it was the year of investing dangerously.