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Posts Tagged ‘vacancy’

SustainDex (environmental|sustainable|clean/bio tech)

Central Business District

International Sustainable Development – Porter Bldg | 227 SW Pine St | 1,752 RSF

Watershed Sciences – Commonwealth Bldg | 421 SW Sixth Ave | 12,497 RSF

Agilyx – Nimbus Corp Ctr | 9600 SW Nimbus | 10,559 RSF

MediaDex (traditional|digital|resesarch)

Eastside

Little Green Pickle – Olympic Mills CC | 107 SE Washington St | 2,667 RSF

GeneralBizDex (consulting|finance|insurance|legal|other)

Central Business District

Stratus Building Solutions – Harbor Square | 5410 SW Macadam Ave | 2,156 RSF

Hays & Marsh – 1500 SW First Ave | 2,605 RSF

Eastside

SET Management – 15 NE Hancock ST | 6,700 RSF

Westside

RGIS – 8255 SW Hunziker Rd | 1,030 RSF

Vancouver

Don Mook – Vancouver Mall Biz Pk | 5107 NE 94th St | 2,200 RSF

Vancouver Food Coop – 1002 Main St | 2,100 RSF

GovDex (government)

Eastside

State of Oregon – Lloyd Plaza | 1425 NE Irving St, Bldg 400 | 27,848 RSF renewal

DesignDex (A/E|apparel|graphic d)

Westside

Williamson & Associates – Kruse Way | 4949 Meadows Rd | 3,253 RSF

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MediaDex (traditional|digital|research)

Central Business District

ROC Group – Morgan Building | 720 SW Washington St | 1,357 RSF

GeneralBizDex (consulting|finance|insurance|legal|other)

Central Business District

Stephen Vincent Jewelers – Fifth Avenue Building | 1400 SW Fifth Ave | 5,787 RSF

Vancouver

Clark CountyProsecuting Attorneys, Child Support – Franklin Building | 800 Franklin St | 6,000 RSF

Ray Krueger – East 18th Street Biz Pk | 5601 E 18th St | 2,400 RSF

Westside

Cleland Woolworth Capital – Kruse Way | 5800 Meadows Rd | 3,313 RSF renewal

AMS Legal PC – Kruse Woods II | 5005 Meadows Rd | 2,827 RSF

Premier Property Group – Kruse Way | 5000 Meadows Rd | 2,801 RSF

Riverside Homes – Tanasbourne Commons | 17933 NW Evergreen Pkwy | 3,571 RSF

NonProfDex (charitable|educational|trade assoc)

Westside

Northwest College – 4200 SW Watson and 4225 SW Hall St | 13,400 RSF

Encore Performing Arts Center – Parkside Biz Ctr | 7700-7704 SW Nimbus Ave | 3,745 RSF

Central Business District

Disability Rights Oregon – 610 SW Broadway St | 6,767 RSF

HealthDex (hospital/provider|managed care|equipment)

Westside

Metropolitan Pediatrics – Commons Building/Cornell Oaks | 15455 NW Greenbrier Pkwy | 17,439 RSF

Eastside

OsteoArthritis Centers of America – Sunnyside Plaza | 10001 SE Sunnyside Rd | 3,766 RSF

SustainDex (environmental|sustainable|clean/bio tech)

Central Business District

Anchor QEA – Commonwealth Bldg | 421 SW Sixth Ave | 4,621 RSF

 

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DesignDex (A/E|apparel|graphic d)

Westside

Nike – Woodside Corp Park | 15100 SW Koll Pkwy | 26,000 RSF

Tetra Tech – Hawthorn Biz Park | 5293 NE ElamYoung Pkwy | 4,367 RSF

TechDex (apps|provider|hardware|var)

Central Business District

Crowd Factory – Oregon Trail Building | 333 SW Fifth Ave | 4,095 RSF renewal

Barefoot Sound – 1710 NW Upshur St | 8,500 RSF

Westside

AIVEA – Amberglen | 1600 NW Compton Dr | 3,793 RSF

GeneralBizDex (consulting|finance|insurance|legal|other)

Central Business District

Randstad – Unitus Plaza | 1300 SW Sixth Ave | 2,700 RSF

Scherzer Strom & Shaw – Commonwealth Bldg | 111 SW Fifth Ave | 3,131 RSF

Mitsui – US Bank Tower | 111 SW Fifth Ave | 1,696 RSF

Vancouver

WPE – Vancouver Biz Pk | 3315 NE 112th | 3,000 RSF

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TechDex (apps|provider|hardware|var)

Central Business District

ELC Technologies – 1771 NW Pettygrove | 4,400 RSF

Enable TV – Century Tower | 1201 SW 12th Ave | 4,235 RSF

CompanionLink – Paulson Building | 811 SW Naito Pkwy | 1,853 RSF expansion

The Good – Raleigh Square | 1603-1625 NW 14th | 3,250 RSF

Vancouver

PCB Universe – Crestwood Biz Ctr | 11818 NE Mill Plain Blvd | 2,112 RSF

HealthDex (hospital/provider|managed care|equipment)

Central Business District

Education Solutions – River Forum I | 4380 SW Macadam | 2,211 RSF

Westside

Western Psychological & Counseling Svs – Cornell West | 1500 NW Bethany | 4,281 RSF

Eastside

Mt. Scott Surgery Center – Mt. Scott Prof. Ctr II | 9300 SE 91st | 7,574 RSF

GeneralBizDex (consulting|finance|insurance|legal|other)

Westside

VergePointe LLP – Kruse Woods I | 5283 Meadows Rd | 5,546 RSF renewal

Pacific Legacy Mortgage – One Embassy | 9020 SW Washington Sq Rd | 6,937 RSF

Knipe Realty NW – Bridgeport Crossing | 7420 SW Bridgeport Rd | 5,063 RSF

Northwest Mortgage – One Willow Creek | 16100 NW Cornell Rd | 3,643 RSF renewal

J.J. Henri – Lake Oswego Exec Park | 5755 SW Jean Rd | 3,497 RSF

Resource Financial Planning – Fairway Center | 9115 SW Oleson Rd | 2,492 RSF renewal

Ohanesian & Associates – 9011 SW Beaverton Hillsdale Hwy | 1,364 RSF

Central Business District

NBS Real Estate Capital – Bank of America Financial Ctr | 121 SW Morrison | 4,552 RSF renewal

Legacy Group Lending – Bank of America Financial Ctr | 121 SW Morrison | 4,824 RSF

NonProfDex (charitable|education|trade assoc)

Central Business District

Portland Community College – Dayton Building | 838 SW First Ave | 2,077 RSF

DesignDex (A/E|apparel|graphic d)

Westside

ATC Group Services – 7070 SW Fir Loop | 2,644 RSF

Evergreen Engineering – One Technology Ctr | 7431 NE Evergreen Pkwy | 17,020 RSF renewal

Thorson Pacific – Lincoln Center | 10300 SW Greenburg Rd | 1,873 RSF

SustainDex (environmental|sustainable|clean/bio tech)

Eastside

LabFX – I-84 Corp Center | 1062 NW Corporate Drive | 1,495 RSF

FunDex

Westside

Lake Oswego Soccer Club – Lake Oswego Exec Park | 5775 SW Jean Rd | 2,125 RSF

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GeneralBizDex (consulting|finance|insurance|legal|other)

Westside

Northwest Bank – Kruse Way | 4900 Meadows Rd | 8,560 RSF renewal

Hayden Properties – Kruse Woods II | 5335 Meadows Rd | 3,564 RSF

Vergepointe LLC – Kruse Woods I | 5285 Meadows Rd | 5,546 RSF renewal

Kforce – 1 Lincoln | 10300 SW Greenburg Rd | 3,244 RSF renewal

Thorsen Pacific – 1 Lincoln | 10300 SW Greenburg Rd | 1,873 RSF

Northwest Mortgage Group – 16100 NW Cornell Rd | 3,643 RSF renewal

Vancouver

Wells Fargo Bank – Vancouver Center N | 700 Washington | 6,886 RSF renewal

Cornerstone Lending – Park Tower Biz Ctr | 201 NE Park Plaza Dr | 2,826 RSF renewal

Central Business District

TicketMaster – Crown Plaza | 1500 SW First Ave | 2,571 RSF

NonProfDex (charitable|education|trade assoc)

Central Business District

Jewish Family and Child Services – Yamhill Plaza | 1221 SW Yamhill St | 4,088 RSF

HealthDex (hospital/provider|managed care|equipment)

Westside

DaCosta Dental – Hall & Nimbus Center | 8400 SW Nimbus | 2,112 RSF

Medius Medical Concepts – Summit Bldg | 1260 NW Water House Ave | 2,133 RSF

Eastside

Hospice Care of NW – 1500 NE Irving St | 5,510 RSF

SustainDex (environmental|sustainable|clean/bio tech)

Westside

LiveLight Energy – Twin Oaks Technology Center | 1815 NW 169th | 6,248 RSF

TechDex (apps|provider|hardware|var)

Westside

nvoice pay – 4 Lincoln | 10250 SW Greenburg Rd | 2,744 RSF

Payer Connections – Kruse Woods II | 5335 Meadows Rd | 1,106 RSF

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TechDex (apps|provider|hardware|var)

Central Business District

Ebay – Fifth Avenue Bldg | 1400 SW Fifth Ave | 28,000 RSF

Triton Technical – Postal Building | 510 SW Third Ave | 1,716 RSF sublease

Westside

Mobile Power Solutions – Twin Oaks | 1815 NW 169th Pl | 2,129 RSF expansion

GeneralBizDex (consulting|finance|insurance|legal|other)

Central Business District

Baron Zeuthen Gutzler Market Square |1515 SW Fifth Ave | 5,340 RSF

Robert J Neuberger – Union Bank of Cal | 707 SW Washington St | 3,629 RSF

Adecco – Bank of America Financial Ctr | 121 SW Morrison St | 3,621 RSF

Vancouver

General Conf Auditing Services – Park Tower Biz Ctr | 201 NE Park Plaza Dr | 3,048 RSF

DesignDex (A/E|apparel|graphic d)

Westside

Golder Associates – Oswego Town Square | 9 Monroe Parkway | 4,806 RSF

HealthDex (hospital/provider|managed care|equipment)

Central Business District

OHSU – Fifth Avenue Building | 1400 SW Fifth Ave | 6,000 RSF

Westside

Braden Partners – Parkside Biz Ctr | 7979 SW Cirrus Dr | 2,519 RSF

NonProfDex (charitable|education|trade assoc)

Central Business District

Oregon Community Foundation – 1221 SW Yamhill St | 22,264 RSF renewal

GovDex (government agencies)

Eastside

Oregon Dept of Human Svs – 305 NE 102nd Ave | 4,750 RSF

Westside

Metro Multifamily Housing Assoc – Fanno Creek Place | 16083 SW Upper Boones Ferry | 3,600 RSF

SustainDex (environmental|sustainable|clean/bio tech)

Central Business District

Renewable NW Project – Commonwealth Bldg | 421 SW Sixth Ave | 3,138 RSF

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DesignDex (A/E|apparel|graphic d)

Westside

IHS Global – 9 Monroe Parkway | 12,018 RSF renewal

Central Business District

MCA Architects – Woodlark Building | 813 SW Alder St | 6,236 RSF

NonProfDex (charitable|education|trade assoc)

Westside

Portland Community College – Hampton Square | 6950 SW Hampton St | 3,926 RSF

Eastside

Salvation Army – San Rafael Shopping Ctr | 1640 NE 122nd Ave | 23,695 RSF

Central Business District

Oregon Community Foundation – 1221 SW Yamhill | 22,264 RSF

Oregon Health Care Quality Corp – Cascade Bldg | 520 SW Sixth Ave | 3,101 RSF

GeneralBizDex (consulting|finance|insurance|legal|other)

Westside

Tompkins Benefit Group – Pacific Parkway Ctr | 12909 SW 68th Pkwy | 2,181 RSF renewal

TechDex (apps|provider|hardware|var)

Westside

Disco Hi Tek – Tanasbourne Biz Pk | 20811 NW Cornell Rd | 3,018 RSF

HealthDex (hospital/provider|managed care|equipment)

Westside

Danville Services of Oregon – Capitol Park Bldg | 9700 SW Capitol Hwy | 2,990 RSF

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DEMYSTIFYING OPERATING EXPENSE PASSTHROUGHS

Office tenant clients frequently ask us what are operating expenses? Admittedly, this is one of the more confusing aspects of a commercial lease and if a tenant is not careful, it can be a costly item. The best way to explain operating expense passthroughs is to provide an example. But first, it is important to know a few key terms:

Full Service Rent vs NNN Rent – Full Service includes normal office utilities, janitorial service, building maintenance and management as well as property taxes while NNN invoices tenants separately for utilities, taxes/insurance and operating expenses.

Rentable Square Feet vs. Useable Square Feet – Rentable Square Feet (RSF) is the square footage that a tenant pays rent on while Useable Square Feet (USF) is the actual size a tenant is using. The difference is that RSF includes a portion of the common areas used by all tenants tacked on to the USF. Otherwise, lobbies and corridors would be used and maintained but lose money for the owner. This additional percentage is called a “load factor” and ranges between 10% and 18% typically. (Ex: 10,000 USF x 15% load factor = 11,500 RSF)

Operating Expenses and Passthroughs – Operating expenses are necessary to run a building including electricity, water and sewer, trash, exterior building maintenance, gas, landscaping, window cleaning, janitorial services, security, property taxes and property management. Passthroughs represent increases above the operating expenses incurred during the Base Year of a Full Service Lease.

Base Year – Can either be the first 12 months of a lease term or calculated on a calendar year. The calendar year method is most common. If a lease commences in the 4th quarter, the Base Year is usually set for the next full year. (Ex: Lease commences 11/1/11, Base Year will be 2012. Lease commences 4/1/11, Base Year will be 2011) 

Okay, so now that you are more thoroughly confused, let’s break all of this information down into an example that will make it easier to understand the calculation of passthroughs.

  • The beautiful Jones Tower (because Smith Center is still under construction) is a Class A office highrise with 491,528 RSF.  
  • ImDabomb Company occupies 10,000 RSF in Jones Tower with a lease that commenced March 1, 2009 and is paying $20.00/RSF Full Service.
  • They have a Base Year of 2009.
  • In 2009, operating expenses were $10.04/RSF.  This is the Base for ImDabomb Co.
  • Jones Tower has 2010 Operating Expenses  of $10.34/RSF.
  • Jones Tower has 2011 Estimated Operating Expenses of $10.73/RSF.

During 2010, ImDabomb would have paid its rent plus the difference between the 2010 budget and the 2009 Base ($10.34 – $10.04 = $0.30).  This amount is then multiplied by the total RSF under lease by ImDabomb and divided up over 12 months ($0.30 x 10,000 RSF = $3,000.00/12 = $250.00 per month additional cost).

During 2011, ImDabomb would have paid its rent plus the difference between the 2011 budget and the 2009 Base ($10.73 – $10.04 = $0.69).  This amount is then multiplied by the total RSF under lease by ImDabomb and divided up over 12 months ($0.69 x 10,000 RSF = $6,900.00/12 = $575.00 per month additional cost).

Every year, the new expenses are calculated against that Base Year figure, so the numbers can really add up  particularly for larger tenants.  If, however, the operating expenses come in below the estimates for the newest year, the tenant will be issued a credit. 

It is important to “reset” your Base Year in the event of a lease renewal or extension. Otherwise, a tenant will continue to see increasing passthrough costs as the gap over the Base Year figure grows.  Much of the increase in expenses is due to things such as city tax changes, expiration of tax credits, building improvements not considered capital costs such as paving a parking lot or painting the exterior, and increases in utility charges.

For a more detailed report on Operating Expenses, please email me at kristin.hammond(at)pacific-re(dot)com.

Next topic: Office lease insurance clauses

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TechDex (apps|provider|hardware|var)

Central Business District

Avatron Software – One Main Place | 101 SW Main St | 4,834 SF

Eastside

Finishing Technologies – Airport Way Biz Center | 205 Airport Way | 14,077 SF

Westside

MIPS Technologies – Summit Building | 1260 NW Waterhouse Ave | 6,973 SF

Prolifiq Software – The Round | 445 SW Watson Ave | 5,074 SF renewal

DesignDex (A/E|apparel|graphic d)

Westside

Adapt Engineering – Westview Plaza | 10725 SW Barbur Blvd | 2,585 SF

Virtual Construction – Beaverton Plaza |3720 SW 141st Ave | 1,837 SF

MediaDex (traditional|digital|research)

Central Business District

Wunderman Worldwide – White Stag Block | 24 NW Couch St | 2,734 SF

Westside

GSH Marketing – 6800 SW Beaverton-Hillsdale Highway | 2,500 SF

Eastside

TNS Custom Research – Cascade Station | 9830 NE Cascade Parkway | 5,880 SF

Answernet Inc – West Gresham Plaza | 2951 NW Division St | 3,142SF

GeneralBizDex (consulting|finance|insurance|legal|other)

Westside

MD’s LLC – Hilltop Biz Center | 7300 SW Hunziker Rd | 4,817 SF renewal

Vancouver

American Pacific Mortgage – HH Hall Building | 10000 NE Seventh Ave | 4,000 SF sublease

Stewart Title – Park Tower Biz Ctr | 12500 SE Second Circle | 2,968 SF

Central Business District

Renewable Funding – 400 SW Sixth Building | 400 SW Sixth Ave | 4,450 SF

Eastside

Herman Miller Inc. – Lloyd 700 | 700 NE Multnomah | 4,122 SF renewal

HealthDex (hospital/provider|managed care|equipment)

Vancouver

Options 360 Clinic – Cascade Plaza | 1706 W Main St | 2,100 SF

Core Fitness/Stairmaster – 4400 Building | 4400 NE 77th Ave | 26,349 SF

Central Business District

Integrated Healthcare Solutions – River Forum I | 4380 SW Macadam Ave | 7,333 SF renewal

NonProfDex (charitable|educational|trade assoc)

Westside

Pacific University – The Round | 12600 SW Crescent St | 3,119 SF

Portland Rescue Mission – 8555 Canyon Road | 3,449 SF

American Red Cross – Salem | 475 Cottage St NE | 4,225 SF renewal

Eastside

Genealogical Forum of Oregon – Ford Building | 11th & Division | 5,000 SF

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GeneralBizDex (consulting|finance|insurance|legal|other)

 Central Business District

Gordon & Rees – Bank of America | 121 SW Morrison St | 6,350 SF

Immigrant Law Group – Oregon Trail Bldg | 333 SW Fifth Ave | 3,282 SF

Westside

Boise Cascade Bldg Materials – Three Centerpointe Drive | 2,627 SF

Generator Group – 17933 NW Evegreen Parkway | 3,253 SF

DesignDex (A/E|apparel|graphic d)

Central Business District

HNTB – Columbia Square | 111 SW Columbia St | 3,607 SF

NonProfDex (charitable|education|trade assoc)

Central Business District

Portland Youth Philharmonic – Cascade Building | 520 SW Sixth Ave | 2,822 SF

Westside

Better Business Bureau of WA, AK, OR  – 4004 Kruse Way Place | 2,578 SF

SALES

Buyer: RSVP Investments LLC

Seller: RH Fund I

Address: Fieldstone Office Park, 11109-14 NE 14th Street, Vancouver, WA

Size: 12,000 SF

Type: Office Building

Price: $1,825,000

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