Real Estate News and Profiles

Is Portland Oregon Real Estate Undervalued? One Bay Area Investment Firm Thinks So

By Portland Metro Live

There’s no denying that values for commercial properties have increased dramatically over the last two years in Portland Oregon, but is Real Estate still undervalued here? The answer to this question to some people would be yes, especially when it comes to investment firms in the Bay Area who feel that Portland’s commercial properties are undervalued when compared to the San Francisco area and have plenty of room to grow.

Out Of Town Investors Eyeing Portland Oregon Real Estate

With a booming Real Estate market in the Bay Area many investment firms, there have been turning their eyes to Portland and investing their profits in the local Real Estate Market.

One company that’s made major investments here in the last year totaling well over $40 million is Swift Real Estate Partners, the company recently purchased the Boiler Room’s location and also most of the buildings along NW Davis and NW Couch.

Portland Oregon Real Estate

Can Swift Real Estate Partners Make Money In Portland?

Since Swift Real Estate Partners has purchased many buildings that are traditionally used for social services and nightlife in Portland some people are wondering if the investment firm will be able to make money here and the answer to that question would be yes.

Their CEO Christopher Peatross is well-known for buying value-add properties (buildings with existing tenants), then fixing up those buildings, raising the rents or attracting new tenants who will come in paying high rents.

For instance, after purchasing seven Silicon Valley office properties in 2014, Peatross told a Bay Area real estate publication he’d look to make money “as we either bring the rents that are now 20 percent below market [rate] up to market levels or bring in new tenants.”

Most Local Investors Not Concerned

Although companies like Swift Real Estate Partners have been making major news in the Portland Oregon Real Estate market some local investors are not concerned about out of state investors buying up local Real Estate and have a wait and see approach since new tenants and higher rents also mean that they can ultimately raise the rents at their properties as well.