Pixelworks Inks Two-Year Renewal at Southcenter

TUALATIN, OR-Pixelworks has signed a 26-month renewal lease for a 24,000-sf building at Southcenter, a 325,000-sf flex-office development here that is owned by UBS Realty Advisors. The lease, which commenced this month, keeps the 10-building, 325,000-sf development at about 90% occupancy.The maker of integrated circuits and software for computer monitors and televisions keeps its headquarters at Lakeside Center in Tualatin and also leases warehouse space in the area as well. It has leased space at Southcenter for about 10 years.Dan Swift of CB Richard Ellis, the leasing agent for the property, tells GlobeSt.com that Pixelworks had given notice that it would vacate the Southcenter building when its lease expired at the end of May, but when the time came the company ultimately decided it needed to keep the space for the time being. Pixelworks’ broker for the transaction, Mark Childs, was not immediately available for comment Wednesday afternoon. “They thought they could consolidate into their other locations,” says Swift. “Apparently their improving business situation justified them needing to continue leasing the space.”The negotiated lease rate for the lease was not released by the parties involved. Prior to Pixelworks deciding to stay, CB Richard Ellis was marketing Pixelworks’ space for between $17.50 and $20.50 per sf per year, full service, depending on the length of the lease commitment.Swift says Southcenter’s 10% vacancy rate is comparable-to-slightly-better than the Tualatin-Sherwood sub market as a whole. The market for office space is strongest along the I-5 corridor, he says. “From Kruse Way out through Tualatin there is good demand,” says Swift. “That demand is starting to push out toward Washington Square and will eventually make it out to the Sunset Corridor.”