RE/MAX is leasing a portion of the 39,000 sf vacated last November by W&H Pacific, which relocated to Peterkort Center II on Southwest Barnes Road in Portland. RE/MAX is relocating to Creekside from 10,200 sf in a small two-story office building in Tigard that is owned by a private investor.
Scott Madsen, Steve Reaume and Kevin Joshi of Cushman & Wakefield represented PS Business Parks in the transaction. Madsen wouldn't get specific as to the lease rate on the deal, but said full-service asking rates in the park range from $14 per sf per year in the older one-story tilt-ups to $21 per sf for the development's newer suburban class A buildings. The listed asking rate for the circa 1984 building RE/MAX will occupy was $10.80 per sf per year, triple net, with services running in the range of $5-$6.50 per sf.
The building RE/MAX will occupy is located at the corner of Southwest Hall Boulevard and Southwest Nimbus Avenue. Madsen tells GlobeSt.com that RE/MAX is taking its space in substantially the same condition as it currently exists, save for new carpet and paint and a couple of new walls. Owner concessions included free rent, said Madsen, not revealing how many months. According to local brokers, many deals in the region lately have included a 10%-20% discount off asking rates and several months of free rent.
With the RE/MAX lease, 28,000 sf remains available in the building, including 15,000 sf on the ground floor and just over 11,000 sf on the second floor. Nextel leases the rest of the second floor or about 15,000 sf.
Madsen says Creekside as a whole is 80% leased, which about matches the vacancy rate for the submarket. PS Business Parks acquired Creekside along with the 600,000-SF Woodside development in 1998, paying $116 million for 1.2 million sf. In 2001, PS added the 685,000 Cornell Oaks Corporate Center to its portfolio for $88 million.
RE/MAX was represented in its transaction by Norris Beggs & Simpson.
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