Renewals Maintain High Occupancy at SouthCenter

PORTLAND-Insignia/ESG continues to resign tenants at SouthCenter, a 342,000-sf development owned by the pension fund clients of UBS Realty Investors. The latest deals aren’t the biggest, but they help Insignia maintain an occupancy rate of around 93% for UBS despite a market-wide average of more like 85%.

The most recent batch of deals includes two renewals and one addition. Teradyne Inc., a provider of testing and interconnection services for companies in the semiconductor and telecommunications industries, re-upped for 8,350 sf of office space at the 10-building development. As well, Mattei Insurance Services Inc. released 2,449 sf. The new tenant is Hi tech Engineering, which also leased 2,449 sf.

Insignia/ESG Managing Director Coby Holley tells GlobeSt.com that “more than anything,” his success in maintaining the park’s above average occupancy of late is due to tenants renewing their commitments. The term and rate of these latest deals isn’t being revealed by those involved, but two other recent deals at the park, one new and one renewal, have been at negotiated at annual full service rates in the mid to high teens per sf.