Regence Buys 84,000-SF in Southern Oregon

MEDFORD, OR-Regence BlueCross BlueShield is relocating and expanding its Southern Oregon Regional Headquarters. Currently located in a 27,000-sf office building in Downtown Medford, the health insurer will be relocating to an 84,000-sf, one-story tilt-up on Commerce Drive that it purchased a few weeks ago for $4.6 million. The concrete building has since been gutted and renovations are underway.

The seller, Key Technologies, has leased back 20,000 sf for five years for an undisclosed term, but the move still represents a 110% expansion in terms of space, and Regence says it will add 200 employees in the region over the next three years. Key Technologies Inc. is the Walla-Walla based Tech firm that bought SRC Vision, which owned the building and is the tenant in the leaseback agreement. SRC makes high-tech scanners for different kinds of quality control.

Mark Watson of Cushman & Wakefield’s Portland office represented Regence in the transaction and also has the disposition assignment for the company’s existing Medford address. The three-story building is located at 2067 Commerce Drive, adjacent a city-owned parking garage and across the street from a multi-tenant office building. The asking price is $2.85 million, not including a nearby surface parking lot that serves as parking for the building.