The commercial conundrum

With Oregon unemployment still above 10%, commercial real estate suffers in the Portland metro area.

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Commercial real estate values soared nationwide from 2003 to 2007, but with the collapse of the job market, the industry is struggling to improve.

Empty office buildings are a common sight throughout the Portland metro area, a situation not helped by Oregon’s still-high unemployment.

The office market is powered almost solely by the job market, and Oregon’s unemployment rate is still perched above 10 percent.

Downsizing companies are begging landlords to reduce their space and rent. Even thriving companies have been reluctant to expand. Landlords are seeing their revenue and building values plummet. Banks have largely been unwilling to make loans to rescue office park owners or their tenants.

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{biztweet}Portland commercial real estate{/biztweet}

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