Portland is an excellent city for hard money lending. The city has a vibrant market of independent businesses, especially in the art, music, and culinary industries, which could offer ample opportunities for commercial real estate investment. However, the market still has risks that lenders should be aware of. Our team at Total Lender Solutions analyzed the most recent Portland commercial foreclosures to glean insights that could help lenders handle turbulency.
Portland Commercial Foreclosures By the Numbers
Using PropertyRadar®, we examined all of the commercial foreclosures in Portland and the surrounding areas entering March 2024:
- There were 22 commercial foreclosures in Portland / Multnomah County
- Many foreclosed properties were older / historic office buildings
- Most of the commercial foreclosures were small retail businesses that were operating out of residential houses
What does this tell us about Portland’s commercial real estate market?
Office Building Foreclosures in Portland
Office buildings were the most costly commercial foreclosures in Portland.
For example, there is a foreclosed office building in Old Town that was purchased for $25 million. It’s currently bank-owned. Two more office buildings in Downtown Portland entered foreclosure after being purchased for $10 million and $13 million. All three of these buildings were constructed in the early 1900s.
A modern office building in Downtown Portland entered foreclosure after being purchased for $33 million in 2016.
“Across the country, we’re seeing larger office buildings enter foreclosure,” says Randy Newman, founder and CEO of Total Lender Solutions. “This correlates with companies shifting to hybrid and remote work after the COVID pandemic. Older buildings may be more at risk since they require expensive renovations.”
Newman says that Portland’s small but stable growth is a silver lining for lenders.
“Portland is home to a dozen corporate mainstays, like Nike and Adidas, and the city’s vibrant culture continues to draw millennials from California and other expensive states. With the right foreclosure strategy, Portland’s distressed commercial properties could still prove valuable for their lenders.”
Commercial Foreclosures in Portland Suburbs
Most of the Portland commercial foreclosures were small businesses that were operating out of suburban homes. Presumably, these business owners had home occupation permits or benefited from mixed zoning laws.
For example, there were two foreclosed properties in Woodstock and two more in Gresham that were businesses based out of suburban homes. These businesses were a tattoo parlor, adult care home, pottery retailer, and a store for leggings and nutrition products.
“Portland is a popular market for boutique businesses, so the city is ripe with opportunities for hard money loans,” says Newman. “However, there’s no guarantee of success for a small business.”
Looking for a Commercial Foreclosure Firm in Portland?
Lenders who are facing a Portland commercial foreclosure should reach out to Total Lender Solutions today. We have decades of experience helping commercial lenders handle foreclosure processing, reconveyances, UCC sales, and other aspects of the foreclosure process.
Our team has a strong track record of helping lenders achieve beneficial outcomes. Contact us to learn more about how we can help.
