Dermody Properties acquires 296,361 SF distribution center in Portland, Oregon
We recently acquired a 296,361-square-foot industrial manufacturing and warehouse building at 19730 NE Sandy in Portland, Ore. The property, located in the Northeast Columbia Corridor submarket, will be managed by the company’s Northwest Region office, led by Phillip Wood, Northwest Region Partner.
The property has 12.09 acres of adjacent developable land, and is situated in an infill, land-constrained area. It enjoys excellent access to I-84 for east/west distribution and to I-205 which connects to I-5 for north/south distribution.
The property will be available for a new tenant as of Q1 in 2019. It features 22-30’ interior clear height, 21 dock high doors, three grade-level doors, ample car parking and space for trailer loading and maneuvering, making it an ideal property for logistics and manufacturing focused companies.
The purchase exemplifies Dermody Properties’ strategy to acquire or develop properties in logistics-focused areas in prime locations across the nation. “This acquisition allows Dermody Properties the rare opportunity to control a large block of functional industrial space in a tight market with additional buildable land,” said Wood.
Portland’s industrial market has experienced a dramatic shift over the past six years, with more and bigger users in the market. Portland’s population grew by 9.6 percent from 2010 to 2016, ranking it the 9th fastest growing U.S. city. This growth in metro area population has propelled strong demand from large e-commerce and distribution companies as they expand into new locations to service Portland’s growing consumer base.
The Northeast Columbia Corridor is the largest and most active industrial submarket in the metro area and currently totals 38 million square feet with overall vacancy of just 6.7 percent. Over the past two years the Northeast Columbia Corridor has been the leading submarket of absorption in Portland, with 1,188,469 square feet absorbed in 2016 alone. The first half of the year was hit with three large users leaving the market but Q3 absorption bounced back with 242,000 square feet being absorbed.
Outside of new construction, tenants looking for 125,000 square feet or more in the NE Columbia Corridor have limited options. Rents for space in new construction will be $0.50 to $0.55 per square foot on the shell, making 19730 NE Sandy an attractive, cost-effective option.
“This property offers excellent opportunities for a wide variety of business needs,” said Douglas A. Kiersey, Jr., President, Dermody Properties. “It is an ideal complement to the Dermody Properties strategic portfolio. It will provide an exceptional location for a customer, and also anticipated excellent returns for our investors.”
Corporate neighbors include Albertsons, Boeing, Bridgestone, John Deere, Honda, Owens Corning and Staples.
Buzz Ellis, Paige Morgan, Craig Reinhart and Kevin Kriesien of JLL brought the opportunity to Dermody Properties. The project will be represented by JLL.