|Central Eastside Office Building 811 SE Stark|
In 2012, office lease in the Portland market was 6,908 square feet; through the end of August 2016, the average office lease had jumped to 10,894 square feet.
According to a second-quarter report from JLL, on average, office tenants have been leasing larger and larger spaces every year over the past five years. In 2012, for example, the average office lease in the Portland market was 6,908 square feet; through the end of August this year, the average office lease had jumped to 10,894 square feet.
“We are overall seeing bigger tenants and bigger blocks of space being leased,” said Eric Haskins, managing director for JLL’s Portland office.
What’s driving the increase in space is a revved-up economy. During the depths of the recession in 2009, the average office lease was 6,967 square feet. But as economic conditions bounced back and hiring picked up, a wide range of businesses found themselves needing more space.
“The job growth during the past few years has obviously fueled it,” Haskins said. “A lot of local companies are maturing and getting to the point where they are able to really put the pedal to the metal on job growth.”
|Portland Central Eastside District|
Earlier this year, online bank Simple moved into its new headquarters office in the Central Eastside Industrial District. The new space, about 62,000 square feet in the newly built Clay Creative Building, is nearly double what Simple had been leasing before.
Not even three months later, Simple signed on for another 50,000 square feet in an under-construction building just across the street.Read more:
All that new space, according to Amy Dunn, a communications specialist with Simple, will help the company better support its rapidly growing customer base, which grew more than 40 percent in the first half of the year.
“Supporting more customers means hiring more people, which is why we’ve snapped up the neighboring space,” Dunn said at the time.
While the new and larger space will help Simple accommodate its growth — another 150 employees could be added to the 330 in the first building and there’s room for another 400 in the second building — it’s also a sign of the larger leasing times.