Digimarc Expanding, Relocating to Creekside

BEAVERTON, OR-Digimarc Corp. is relocating its headquarters here from Tualatin. The high-tech security company has signed a seven-year lease for 9405 SW Gemini Dr., a 46,083-sf building at Creekside Corporate Park, a 600,000-sf development owned by publicly traded PS Business Parks.Prior to this deal, the optical fiber testing equipment maker Photon Kinetics was on the hook for the building, which it was not occupying, along with one other building in the park that it is occupying, through 2006. To make room for Digimarc, PS Business Parks negotiated an early termination of Photon Kinetics’ lease at 9405 SW Gemini. As partial consideration for the early termination, Photon Kinetics signed a two-year extension for the other building (31,381 sf), 9305 SW Gemini.PS Business Parks Northwest VP Coby Holley tells GlobeSt.com the lease deals don’t soak up any more space at Creekside, but they do diversify the park’s tenant base and extend the lease commitments for both buildings. According to local brokers, the leases follow on the heels of a 20,000-sf lease in February to publicly traded Accredited Home Lenders of San Diego, which didn’t previously have a Portland-area presence. Holley declined to confirm that lease transaction, but he did say the business park is now about 80% leased. Last year at this time, the park was closer to 70% leased, he says. Both buildings involved in the deals are two-story tilt-ups classified as class A flex. The lease rates on the deals aren’t being revealed by the parties involved, however; other brokers familiar with the property tell GlobeSt.com that deals are being signed at full-service rates in the range of $17-$18 per sf per year.Creekside is located off Highway 217 and SW Hall Boulevard, 10 miles west of Downtown Portland. Digimarc is relocating from approximately 30,000 sf at 19801 SW 72nd Ave. in Tualatin, a building owned by St. Paul Properties. The company plans to make the move in September.David Squire, Eric Haskins and Brandon Frank of Grubb & Ellis in Portland represented PS Business Parks in the Digimarc transaction. Greg Hume with Hume Meyers Tenant Counsel represented Digimarc. Chris Elsenbach of Cresa Partners represented Photon Kinetics. PS Business Parks was represented in-house by Holley.