THE LIST

By Anthony Effinger

Here’s a scary number: Nearly a third of Portland’s downtown office space stands empty.

The skyline along the Willamette is a ghost town of sky scrapers, filled with buildings that are in trouble because they have too few tenants. Or they have loans that are coming due and can’t refinance. In far too many cases, it’s both.

Such grim circumstances are outlined in some harrowing documents being passed among Portland commercial property owners these days. The spreadsheets are known as “death lists” because they describe buildings that don’t make economic sense any more. They have too much debt and not enough income from rent to cover it.

CONTINUED ON PAGE 14 tenants. You’re not going to book another major employer into this city for a decade.”

The death lists include phrases like: “deed in lieu of foreclosure” (meaning the owner voluntarily gives the property to the bank); “expected to go back to the bank”; or on a “watchlist” because the loan matures soon.

To a real estate professional, such terms are tantamount to seeing words like “stomach cancer” or “genital herpes” in an email from your doctor. No one wants to be on such a list. But the ones being passed around town contain more than three dozen buildings, some of them really large.

So we made a list of our own.

WW got hold of a copy of one death list and spent hours at the county recorder’s office looking through addresses for bad loans, foreclosures, opaque transfers and liens. We made neat stacks of paper on our office floor and coded them to names on a Google Sheet that tracks owners, prices paid, and market values. We traced ownership through endless lists of nested limited liability companies, which property owners use to cloak their holdings. We called and emailed dozens of owners from Florida to Los Angeles—and heard little back.

From that we created a map showing properties where we could document anything that smelled like distress: something as mild as a lien or as catastrophic as a foreclosure. The upshot: We found 16 properties that have a documented problem now.

Statistics support Ames, to a point. Downtown Portland’s office vacancy rate, including space available for sublet, was 31.5% in the second quarter of the year, according to Colliers, a Toronto-based firm that tracks global real estate. That’s a fraction better than hard-hit San Francisco (31.9%), and worse than Seattle (27.9%), Los Angeles (30.9%), Salt Lake City (19.9%) and Denver (23.4%).

“The Portland office market continues to face a bleak outlook at the midway point of 2023,” analysts at Colliers wrote. “Over the next two quarters, more than 500,000 square feet of leased space is set to expire marketwide. Should these tenants maintain office space following the expiration of their leases, they will likely look to downsize their real estate footprints.”

Ames, 83, says he’s never seen Portland so empty and foreclosed. “I’ve been in this business for 50 years, and I’ve never seen anything like this,” Ames says.

At 31.5%, Portland’s vacancy rate is higher now than it’s been since anyone started keeping reliable records. Even in 2010, after the Great Recession weeded out lots of tenants, the downtown vacancy rate stayed below 15%, Colliers says.

Just like in the movies, lurid scenes play out on the courthouse steps. Last Friday morning, one of Portland’s most iconic buildings, Jackson Tower, went to auction. The 12-story landmark, built in 1912, overlooks Pioneer Courthouse Square and has a Roman-numeral clock tower. A California-based LLC bought it for $13.5 million in 2008 and still owed $10.7 million to JPMorgan Chase, according to court filings.

At 10 am, a representative for the trustee read out the auction notice to a reporter and a photographer. No one else showed up. When neither of the journalists bid, a lawyer for the lender offered $7.5 million, using the debt on the building, which totaled $10.7 million. That’s called a “credit bid,” and it’s a bit like taking your brother to prom. No one wants to do it.

The loss of tenants is hurting older buildings like Jackson Tower most. Companies looking for space can get good deals on plush buildings that broke ground before the world changed. Law firm Davis Wright Tremaine is leaving its old digs in the Wells Fargo Tower for Block 216, a new spire that has both office space and Ritz-Carlton residences (that commute could bring a new meaning to working from home).

But some brand-new buildings are cratering, too. The owners of Field Office, a 290,375-square-foot office complex near the Willamette River with all the tech-bro amenities (roof deck, scooter charging), defaulted on their $73.8 million loan after they couldn’t find enough tenants. The lender is auctioning the loan to the highest bidder. Offers were due this week.

Because Portland has no sales tax, local governments rely more heavily on income tax and property tax to pay for things like schools and homeless shelters. And taxes paid by downtown property owners account for about 15% of Multnomah County’s property tax, according to consulting firm ECONorthwest.

It’s no secret that there are troubled buildings all over Portland. They’re all over America, thanks to the pandemic, when companies figured out that employees could work from home in a pinch. Those workers have been slow to come back—slower in Portland than in most cities, by several measures—and many companies aren’t renewing office leases.

In a case of very bad timing, many real estate loans made during the last boom, when interest rates were low, are coming due now. Owners must refinance, but their buildings are worth far less, and interest rates are much, much higher. That’s a deadly pair of pincers. Many owners are choosing to walk away, giving buildings back to the banks that financed them. An LLC controlled by Bank of America, for example, took over the Crossing at First in May—a gleaming 191,000-square-foot campus near Duniway Park that was remodeled in 2017.

“A slug of loans is all coming due at the same time,” says real estate lawyer Dean Alterman. “The people I’m dealing with can still get financing, but they have to look harder for it.”

The question—and it’s a contentious one—is whether Portland is worse than any place else because of blight. Plywood that went up during the 2020 protests still obscures some downtown storefronts. Homeless camps that took root during the pandemic are only now being removed. On some downtown blocks, you’re just as likely to see someone smoking fentanyl as sipping a Frappucino.

Bob Ames, former president of First Interstate Bank and a longtime investor in commercial property, thinks Portland is suffering more than most. “The problem with downtown Portland is that you don’t want to be in downtown Portland,” he says. “We’ve driven a lot of capital out of here, and a lot of

Given that those taxes are levied based on the value of the buildings, if values fall far enough, so will tax revenues.

We won’t know how bad the hit is until the county assessor’s office releases the next round of market values at the end of the year, says Michael Wilkerson, director of analytics at ECONorthwest. Because property tax increases are capped in Oregon and have been for decades, the assessed value of buildings—the value that determines an owner’s tax—lags the market value. In good times, it lags a lot.

“The vast majority of properties in the central city have real market values that are much higher than assessed values, so drops of 50% or more would generally be required in order to impact property tax revenue,” Wilkerson says. He’s not sure that will happen. He sees some green shoots: “We have many examples of central city neighborhoods with a mix of residential and commercial uses that are thriving.”

The 16 properties with documented distress are listed on the map that follows on page 12. We’ve done short profiles of three we think are emblematic. One, the Commonwealth, is historic, and the owners took maybe the biggest haircut (Wall Street’s favorite term for a loss) in town. Another, Aspect on Sixth, got an expensive face-lift at exactly the wrong time. The final one, Montgomery Park, is enormous and appears to be teetering.

Almost everyone we talked to said the worst is yet to come for Portland real estate. “The dam is breaking,” said one property owner who declined to be named.

If that’s the case, the Death List will grow, and our map will bleed more red.

Continued on page 15

APANO

BLUE SKY GALLERY

COOLEY GALLERY AT REED COLLEGE

ILY2

JORDAN SCHNITZER MUSEUM OF ART AT PORTLAND STATE UNIVERSITY

HOFFMAN GALLERY AT LEWIS & CLARK COLLEGE

OREGON

JEWISH MUSEUM AND CENTER FOR HOLOCAUST EDUCATION

OREGON CONTEMPORARY

PACIFIC NORTHWEST COLLEGE OF ART WILLAMETTE UNIVERSITY

PATRICIA RESER CENTER FOR THE ARTS

PARALLAX ART CENTER

PORTLAND ART MUSEUM

PORTLAND INSTITUTE FOR CONTEMPORARY

ART

PORTLAND JAPANESE GARDEN

THE SCHNITZER COLLECTION

SE COOPER CONTEMPORARY

STELO ARTS

NORTHWEST / PEARL DISTRICT

1 BLUE SKY GALLERY

122 NW 8TH AVE, PORTLAND, OR 97209

WED–SUN, 12–5 PM

Richard Mosse: Occidental, Aug 24 – Oct 21

Photographs of domesticated plants in homes, workplaces, and public spaces in the Brazilian city, Belém do Pará, show how nature is both a focus for human desire and well-being, but also dangerous and in need of mastering.

2 Ily2

925 NW FLANDERS ST, PORTLAND, OR 97209

WED–SAT, 11 AM–6 PM

Amanda Ross-Ho: ICE TIME, Aug 24  –  Oct 28

Made in response to research triggered by an encounter with a place and its materials and textures, Ross-Ho’s new works explore the architectures of memory and physical space.

3 Oregon Jewish Museum And Center For Holocaust Education

724 NW DAVIS ST, PORTLAND, OR 97209

WED–SUN, 11 AM–4 PM

Yishai Jusidman: Prussian Blue, Aug 24 – Nov 26

A reflection on history through cyanotypes and paintings of WWII sites rendered exclusively in one of the earliest artificially developed pigments used by European painters: Prussian Blue.

4 Pacific Northwest College Of Art

511 NW BROADWAY, PORTLAND, OR 97209

MON–SAT, 10 AM–4 PM

Assembly, Aug 24 – Oct 7

A group exhibition across three venues, Assembly explores, among other values, ideas of identity, representation, inclusion, citizenship, labor, landscape, cityscape, ecology, trade, regionalism and globalism, at a time when the very meanings of these terms are shifting.

Rodrigo Valenzuela: Garabatos, Aug 24 – Oct 7

A new series of black and white photographs inspired by the artist’s investigation of Latin America’s music scene and its attendant subcultures in the authoritarian aftermath of Operation Condor.

5 Parallax Art Center

516 NW 14TH AVE, PORTLAND, OR 97209 MON–SAT, 10 AM–5 PM Assembly, Aug 24 – Oct 14

A group exhibition across three venues, Assembly explores, among other values, ideas of identity, representation, inclusion, citizenship, labor, landscape, cityscape, ecology, trade, regionalism and globalism, at a time when the very meanings of these terms are shifting.

6 Stelo Arts

412 NW 8TH AVE, PORTLAND, OR 97209 THURS–SUN, 12–5 PM, AND BY APPT Assembly, Aug 24 – Oct 8

A group exhibition across three venues, Assembly explores, among other values, ideas of identity, representation, inclusion, citizenship, labor, landscape, cityscape, ecology, trade, regionalism and globalism, at a time when the very meanings of these terms are shifting.

7 The Schnitzer Collection

3033 NW YEON AVE, PORTLAND, OR 97210 PLEASE CHECK WEBSITE FOR PUBLIC HOURS: SCHNITZERCOLLECTION.ORG

We Are the Revolution: From the Collections of Jordan D. Schnitzer and His Family Foundation, Aug 26 – Dec 1

A living history of social expression through art in diverse media, this exhibition explores the ways in which the art of the past meets and affects the art of the present.

Northeast

8 OREGON CONTEMPORARY

8371 N INTERSTATE AVE, PORTLAND, OR 97217 FRI–SUN, 12–5 PM

Sam Hamilton / Sam Tam Ham: Te Moana Meridian, Aug 25 – Oct 8

This five-channel video installation proposes that the United Nations General Assembly elect a new “center of the world” in the South Pacific, radically reframing the dynamics of global power.

Tavares Strachan: One Hundred More Fires, Aug 25 – Oct 8

Tavares Strachan’s large-scale neon sculpture One Hundred More Fires (2023) literally brings the forgotten history of Cuban revolutionary Camilo Cienfuegos’ story back into the light.

9

Portland Institute For Contemporary Art

15 NE HANCOCK ST, PORTLAND, OR 97212

THU & FRI, 12–6 PM SAT & SUN, 12–4 PM

Seba Calfuqeo: Alka domo & Flowing Like Waterfalls, Aug 24 – Sept 24

In a performance and video installation, Seba Calfuqeo recontextualizes a story about a legendary revolutionary who led an indigenous army in an uprising against the Spanish conquistadors.

Southwest

10

12 Portland Japanese Garden

611 SW KINGSTON AVE, PORTLAND, OR 97205

WED–MON, 10 AM–4 PM

Bosco Sodi: Baku, Aug 24 – Sept 11

Bosco Sodi’s single-channel video Baku (2012) documents the meditative care of the gardener at a temple in the sacred city of Kyoto, Japan, engaging the viewer in a state of contemplation on the cyclical nature of life.

Beaverton

13

Patricia Reser Center For The Arts

12625 SW CRESCENT ST, BEAVERTON, OR 97005

WED–SAT, 12–6 PM

Malia Jensen: Endless Pigeons, Aug 12 – Oct 21 Comprised of eight oversized pigeons rising one atop the other and installed outside, this sculpture is the realization of a maquette the artist made while living in New York, echoing Constantin Brancusi’s iconic Endless Column

Jorge Tacla: Stagings/Escenarios, Aug 12 – Oct 21 An HD video installation paired with a twenty-sixfoot painting installed like a public billboard examine destroyed architectures in the aftermath of violence and unrest.

Southeast

14 COOLEY

Gallery At Reed College

3203 SE WOODSTOCK BLVD, PORTLAND, OR 97202

THU–SUN, 12–5 PM

Jesse Murry: Rising, Aug 24  – Dec 3

Rising, curated by painter Lisa Yuskavage and critic Jarrett Earnest, brings together powerful paintings by the late Black artist, poet and essayist Jesse Murry.

15 CENTER

For Native Arts And Cultures

800 SE 10TH AVE, PORTLAND, OR 97214 FRIDAYS, 4–7 PM

HOFFMAN GALLERY AT LEWIS & CLARK COLLEGE

615 SW PALATINE HILL RD, PORTLAND, OR 97219

DAILY, 11 AM–4 PM

Richard Mosse: Broken Spectre, Aug 24 – Dec 15

The immersive film Broken Spectre by artist Richard Mosse is arguably the most powerful artistic response to date to the devastating and ongoing impact of deforestation in the Amazon.

11 Jordan Schnitzer Museum Of Art At Portland State Unviversity

1855 SW BROADWAY, PORTLAND, OR 97201

TUE–WED, 11 AM–5 PM / THU, 11 AM–7 PM / FRI–SAT, 11 AM–5 PM

A Question of Hu: The Narrative Art of Hung Liu, Aug 22– Dec 2

Drawn from the collection of the Jordan Schnitzer Family Foundation, this exhibition of paintings, tapestries and prints by the late pioneering artist Hung Liu provides an expanded view of citizenship in an era of seismic change.

Marie Watt: Chords to Other Chords (Relative), Aug 24 – Oct 15

Portland-based artist and Seneca Nation member Marie Watt’s monumental sculpture fabricated in neon serves as an affirmation of the land and the Indigenous people who are ephemeral monuments to this territory.

16 SE COOPER CONTEMPORARY

6901 SE 110TH AVE, PORTLAND, OR 97266

2 INDIVIDUALS AT A TIME; BY APPOINTMENT

Malcolm Peacock: next in line at the peak of the valley, his spine bent forward as he surrendered to his choices, Aug 25 – Oct 15 An intimate multi-media installation, Peacock’s work creates a space where all individuals of the public can exist without the physical presence of surveillance.

17 BILLBOARD

EASTBANK COMMERCE CENTER

1001 SE WATER AVE, PORTLAND, OR 97214

Peter Gronquist: SKY LINE, Opens Aug 24

PATRICIA RESER CENTER FOR THE ARTS

Malia Jensen: Endless Pigeons

THE SCHNITZER COLLECTION

We Are the Revolution: From the Collections of Jordan D. Schnitzer and His Family Foundation ©

OREGON CONTEMPORARY

Sam

HOFFMAN GALLERY AT LEWIS & CLARK COLLEGE Richard

PORTLAND INSTITUTE FOR CONTEMPORARY ART

CENTER FOR NATIVE ARTS AND CULTURES

PUBLIC ART, ALL SITES

Anna Gray + Ryan Wilson Paulsen: more missives, Aug 24 –(per site) more missives was first envisioned as a series of experimental publications in brick form distributed across the various venues of the biennial. Approaching the brick as a form of public speech and a weapon of the people, Anna Gray + Ryan Wilson Paulsen created these heavy rectangles for fun, for contemplation, and for future use. Each brick is inscribed with text or otherwise carries a message, and they will be a recurring form, carefully placed at the various venues.

Affiliated Exhibitions Apano

C45 CO-SPONSORED SPECIAL EDITION. AVAILABLE TO PICK UP IN OCTOBER —STAY TUNED!

Orchard Community News

18 NINE GALLERY

122 NW 8TH AVE, PORTLAND, OR 97209 WED–SAT, 12–5 PM

Pour the Water as I Leave: Installation, Vol II: Film in Progress, Aug 3 – Sept 2

19 HELEN’S COSTUMES

7706 SE YAMHILL ST, PORTLAND, OR 97215 SAT–SUN, 1–4 PM & BY APPOINTMENT

Aftercare: Taravat Talepasand–Terry Powers, Aug 27 – Sept 30

20 WELL WELL

Projects

8371 N INTERSTATE AVE #1, PORTLAND, OR 97217

SAT & SUN, 12–5 PM

Fuel Ladder Collective: Holding Fire, Sept 2–24

21 PORTLAND ART MUSEUM

1219 SW PARK AVE, PORTLAND, OR 97205

WED–SUN, 10 AM–5 PM

Black Artists of Oregon, Sept 9, 2023 – Mar 17, 2024

22 THE VERDANCY PROJECT

TROUTDALE, OR BY APPOINTMENT, 10–4 PM ON SELECT DAYS

Terra Incognita, Aug 19 – 20, Aug 26 – 27

23 ADAMS AND OLLMAN

418 NW 8TH AVE, PORTLAND, OR 97209

WED–SAT, 11 AM–4 PM

Paul Swenbeck: Cross Quarters Merry Meet, Aug 5 – Sept 16

24 ELIZABETH LEACH GALLERY

417 NW 9TH AVE, PORTLAND OR 97209

TUES–SAT, 10:30 AM–5:30 PM

Peter Gronquist: Manifest; and Wanted: Ed Bereal for “Still Disturbing the Peace”, Aug 3 – Sept 2

25 NATIONALE

15 SE 22ND AVE, PORTLAND, OR 97214

THURS–MON, 12–6 PM

Laura Camila Medina: Mi Reflejo; and Dennis Foster: Wake Up New, Through Sept 2

26 PDX CONTEMPORARY

1825 B NW VAUGHN, PORTLAND, OR 97209

TUES–SAT, 10–5

You belong among the wildflowers, July 8 – Aug 26

27 THE BLACK GALLERY

916 NW FLANDERS, PORTLAND, OR 97209 BY APPOINTMENT

28 RUSSO LEE GALLERY

805 NW 21ST AVE, PORTLAND OR 97209

TUES–FRI, 11 AM–5:30 PM

SAT, 11 AM–5 PM

Willie Little: I Do Not Want What I Have Not Got, Aug 3 – Sept 2

29 BLACKFISH GALLERY

938 NW EVERETT ST, PORTLAND OR 97209

TUES–SAT, 11 AM–5 PM

Aaron Johnson: Points of Interest, Aug 1 – Sept 2

30 DIRECTOR PARK LIVE PAINT OFF

815 SW PARK AVE, PORTLAND, OR 97205

AUG 24–25, 11 AM–7 PM;

AWARDS PRESENTED AT 11:30 AM SUNDAY, AUG 26 Visit www.jordanschnitzer.org/funded-programs/#paint for more info