wikman building market analysis

The Wikman-Arleta Building Market AnalysisPrepared by: Alison Wicks, Portland State UniversityFor: ROSE Community Development & Project PartnersAugust 2012


1917- “Arletans” raise $1,800 to purchase site for Arleta Library

1918- Arleta Library built with a funds donated by Andrew Carnegie

1948- Wood burning furnace replaced with oil furnace

1973- Library Association of Portland transfers the property to Multnomah County for $0

1982- Multnomah County Board dedicates the building to the memory of Lea Wikman

1988- Multnomah County’s Department of Community Justice opens Southeast O�ce

2011- Department of Community Justice relocated

2012- Rose Community Development developing business plan for future uses of the Wikman-Arleta Library

Arleta Library

(1917-1973)M

ultnomah County

Comm

unity Action

Agency (1973-1988)

Multnom

ah County Departm

ent of Com

munity Justice

(1988-2011)

Vacant(2011- ?)

2011- Multnomah County Board of Commissioners declared the Wikman Building as Surplus Property

Introduction: The Wikman-Arleta Building and ROSE Community DevelopmentROSE Community Development along with project partners; Foster Area Business Association, Foster-Powell Neighborhood Association and Southeast Uplift, have positioned themselves to acquire the Wikman-Arleta Building and property from Multnomah County and restore the site to community use.

This market analysis is intended to help inform the decisions that ROSE Community Development and their project partners will make around potential future uses of the Wikman-Arleta Building. Current proposed uses for the site include small offices possibly assembled as a business incubator, a neighborhood café and a flexible event space. Ideas for the Wikman-Arleta the site were developed through a series of community visioning events. Aboveall partners envision the Wikman-Arleta building being repurposed to a serve a combination of entrepreneurial and community-building activities.

During the development of this study the analyst received guidance from ROSE Community Development staff and the Wikman-Arleta Project steering group.

History of Wikman-Arleta BuildingThe Wikman-Arleta Building has a rich, nearly 100 year history in the Foster-Powell neighborhood. In 1917 “Arletans,” as neighborhood members were called then, raised $1,800 (over $30,000 in 2010 dollars) to purchase the



deed of the site. The following year, with funds donated by Andrew Carnegie the Library Association of Portland completed construction on the Arleta Library. The library became an important neighborhood asset while Portland recovered from the Great Depression. The Arleta Library held $9,000 books, hosted programs for adults and children, and acted as a site for neighborhood health services throughout the 1930s.

The building acted as a library for 56 years, until when in 1973 the Library Association of Portland sold the building to Multnomah County for $0. From 1973 to 1988, the building served as the headquarters of the Multnomah County Community Action Agency (MCCA) program. During this time period, Lea Wikman acted as the MCCA chair. When Ms. Wikman passed away suddenly in 1982, the Multnomah County Board re-named the building in her honor.

In 1982 Multnomah County placed a new office of the Department of Community Justice in the building. The Wikman-Arleta Building housed this program until July 2011 and has since sat vacant. In September 2011, Multnomah County declared the building as Surplus Property. This means that the property is no longer required for County use. And that the Country has no practical, efficient, or appropriate use for the property and the County will have no use for the Wikman-Arleta Building in the near future.

Site and Neighborhood CharacteristicsThe Wikman-Arleta Building is located Southeast Portland, at the intersection of SE Holgate and SE 64th Avenue, near SE Foster Rd (4420 SE 64th Avenue). Wikman-Arleta Building Site




The Wikman-Arleta Building is adjacent to the 0.42 acre Laurelwood Park. The site is in the Foster-Powell neighborhood and the Lents Town Center Urban Renewal Area. The Arleta Elementary school is 0.5 miles south of the site.

The Wikman-Arleta has very good pedestrian and cyclist access and frequent transit service. It is adjacent to Laurelwood Park which features shaded sitting areas and is a hub of pedestrian activity. The site and is near two popular bus lines, the #17 Holgate and the #14 Foster. The building is in the “Heart of Foster” portion of the Foster-Powell neighborhood. This part of Foster Rd is lined with one and two story retail store fronts, including restaurants, bars, cafes, and shops. Also, the Bob White Theater (6423 SE Foster) is around the corner from the Wikman-Arleta building. The Bob White Theater has a new owner who is restoring and reopening the historic theater.

The Wikman-Arleta building has great auto access. Foster Rd is a major thoroughfare for Southeast Portland. Near the site Foster Rd has an average daily traffic volume of 24,328 cars. SE Holgate Blvd is also a moderately busy neighborhood arterial with an average daily volume of 10,625 cars. The Wikman-Arleta building has then benefit of good visibility from both SE Foster Rd and SE Holgate Blvd but faces on to less busy SE 6th Ave. In addition, the Wikman-Arleta building is near area highways, it is 1.5 miles east of I-205 and 0.5 miles south of Powell Ave (US26). The site has little available parking. The two sub-standard onsite spaces will likely be renovated into an outdoor seating area for customers and tenants. There is plentiful unrestricted on-street parking and ROSE Community Development is considering working with nearby church to negotiate an agreement for special event parking. Building CharacteristicsThe historic Wikman-Arleta Building is one story tall and sits on a 8,000 SF lot. It has a partial basement and a small mezzanine. The building is wood constructed with red-brick veneer. The exterior also features wood detailing and an intricate cupola. Large round arched windows offer exceptional natural lighting to the interior spaces and a pleasant exterior façade. The 2010-2011 Assessed Value of the building is $505,340.

Multnomah County lists the site as having 5,187 rentable SF, Cushman Wakefield list it as with only 4,251 rentable SF. How the footprint of the building will be split up among income generating uses is still to be determined by Rose Community Development and the project partners.

Demographic and Economic Trends The Wikman-Arleta Study Area consists of approximately 2 square miles surrounding the Wikman-Arleta Building. The Wikman-Arleta Study Area is made of eight U.S. Census Tracts (4.01, 4.02, 5.01, 5.02, 7.01, 7.02, 8.01,



and 8.02). When possible the Wikman-Arleta Study Area is compared to the Portland Metropolitan Statistical Area (MSA) average. When appropriate the Portland MSA is compared to the U.S. national average.

Population Growth: The Portland MSA saw a 10% population growth from 2000-2010, growing from a household population of 514,129 to 566,022. While over the same time period the Wikman-Arleta Study Area only saw a 1% population growth from 2000-2010, growing slowly from a household population of 32,732 or 33,060.

Age: The biggest differences in age makeup between the Wikman-Arleta Study Area and the Portland MSA are in 25-40. The Wikman-Arleta Study Area has 3%-6% more young adults in this age range than the Portland MSA averages. The study area also has lower percentages of children ages 5-19 than the Portland MSA averages.

Income: The Wikman-Arleta Study Area has higher proportions of the population in income brackets under $100,000. While In the highest income brackets the Wikman-Arleta Study Area trail the Portland region.

0% 2% 4% 6% 8% 10% 12%

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

60-64

65-69

70-74

75-79

80-84

85+

Percent of toal population

Ag

e g

rou

p

Wikman-Arleta Study Area DemographicsPopulation by age group

Wikman-Arleta Study Area

Portland




0% 5% 10% 15% 20% 25%

Less than $10,000

$10,000 to $14,999

$15,000 to $24,999

$25,000 to $34,999

$35,000 to $49,999

$50,000 to $74,999

$75,000 to $99,999

$100,000 to $149,999

$150,000 to $199,999

$200,000 or more

Wikman Arleta Study Area DemographcisIncome

Wikman Arleta Study Area

Portland

-7.0

-6.0

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Wikman-Arleta Study Area DemographicsJob Growth, Portland and US Metropolitan Area average

Portland

US Metropolitan AreaAverage



Median Income: The Median income for the Study Area is 48,935. Median household income in the Portland Metro Area is 56,275.

Job Growth: The Portland metro area job growth trends with the U.S. national averages, but with a greater level of fluctuations. Portland will see higher gains and deeper losses. Since 2009, both the U.S. and Portland have see job growth, with Portland slightly outpacing the U.S. average in 2011.

Industry Trends: In addition, both the Retail Trade and the Professional Services industries have seen growth in the Portland MSA between June 2011 and June 2012. The Professional Services industry includes architects, engineers, designers, lawyers, real estate brokers, software developers.

Market Supply Comparable retail, office and event spaces were chosen because of their proximity to the Wikman-Arleta building and for their physical similarities. Information for three retail comparable spaces was acquired via a Cushman Wakefield Co-Star report. Information for two office comparable spaces was found via craigslist.org. And information on two event space rentals was acquired from location websites and over-the-phone interviews.

-2.2

0.6

1

1

1.1

1.7

1.9

2.5

5.2

-4% -2% 0% 2% 4% 6%

Government

Manufacturing

Total nonfarm employment

Health care and social assistance

Professional and business services

Computer and electronic product manufacturing

Durable goods

Retail trade

Educational services

Wikman-Arleta Study Area DemographicsPercent change in total employment by industury, Portland MSA June 2011- June 2012




1. SE Rural Retail 7036 SE 52nd Ave, Portland, OregonThis two story historic freestanding building, at the corner of, has two ground floor retail spaces available. The building was built in 1937 and is zoned for Neighborhood Commercial 2. The site is approximately 2 miles south of the Wikman-Arleta Building, on the corner of two quiet neighborhood streets, SE 52nd Ave and SE Rural. The two available retail spaces are listed as 900 sf and 1,000 sf, each at $12.00 Rent/SF/Yr plus utilities. The Wikman-Arltea Building is on a more active corner than this location.

2. Foster Plaza Retail 6400-6420 SE Foster Rd, Portland, OregonThis one story retail Strip Center is located 2 blocks from the Wikman-Arleta Building. It has three storefront retail spaces available that face onto Foster Ave. The center was built in 1932 and is zoned for Storefront Commercial. The three available retail spaces range from 1,100 SF to 1,700 SF and in $10.56 SF/yr - $13.08 SF/Yr triple net. In a triple net lease the tenant agrees to pay all the real estate taxes, building insurance and maintenance on the property in addition to any typical fees such as rent and utilities.

3. North Foster Retail 5134-5136 SE Foster Rd, Portland, OregonThis one story freestanding building is located under 1 mile from the Wikman-Arleta building near the corner of SE Foster Rd and SE 52nd Ave. It has one 2,800 SF retail space available that fronts onto busy Foster Ave. The building was built in 1927 and is zoned General Commercial. The retail space is listed at $13.20 SF/Yr plus utilities.

4. Heart of Foster Office 6510 SE Foster Rd, Portland, OregonThis office space for rent is located on the second floor of a retail/office building on Foster Rd. The building is four blocks from the Wikman-Arleta Building near Laurelwood Park. The building was built in 1910 and has a ground floor restaurant. The office space is listed as $495 per month for 337 SF and includes garbage, water and sewer, recycling, electricity and taxes. This equates to $8.15 SF/Yr with utilities included.

5. Creative Lents Office 7916 SE Foster Rd, Portland, OregonThe Creative Lents office space offers 5,600 SF of leasable space. The building consists of a large open area, 3 private offices and a conference room. This stand-alone office building is located the intersection of SE Foster Rd and 79th Ave and it has its own onsite parking lot. The office building is listed at $6.43/SF/Yr with a triple net lease of $3.00 SF/Yr.

6. Mt. Scott Community Center Events 5530 SE 72nd Ave, Portland, OregonThe Mt. Scott Community Center is a Portland Parks and Recreation facility located in Mt. Scott park near SE 72nd Ave and SE Harold St. The Mt. Scott Community Center is located approximately 1 mile north of the Wikman-

4

3

2

1



Arleta building. The facility offers a variety of event space, including swimming pool and roller rink rentals. The facility has three rooms that would be appropriate for events of 20-50 people. Rental rates for these rooms are $60-$80 per hour. It was suggested to reserve rooms up to 1-1.5 months in advance.

7. Tabor Space Events 5441 SE Belmont, Portland, OregonTabor Space is a non-profit coffee house and grass roots community center located in the Mt. Tabor Presbyterian Church, at the corner of SE 51st Ave and SE Belmont. The facility is located approximately two miles north of the Wikman-Arleta Building. Tabor Space has two rental facilities comparable to the Wikman-Arleta Building space, the Copeland Commons offers 1,600 at $55 per hour for the first hour and Muir Hall which offers 1,025 SF at $25 for the first hour. Both spaces offer rental rates on a declining scale for additional rental hours. Tabor Space also offers rental packages and flat rental rates for music bookings.

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2

3 45

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7

8 Wikman-Arleta Building

Map of Comparable Spaces




Site Address Age SF available Rent

1. SE Rural Retail 7036 SE 52nd Ave 1937 900 - 1,000 SF

$12.00 Rent/SF/Yr + utilities’

2. Foster Plaza

Retail 6400-6420 SE

Foster Rd 1932 1,000 –

1,700 SF $10.56 SF/yr - $13.08 SF/Yr triple net

3. North Foster

Retail 5134-5136 SE

Foster Rd 1927 2,800 SF $13.20 SF/Yr + utilities

4. Heart of

Foster Office 6510 se foster rd

1910 337 SF $8.15 SF/Yr utilities included

5. Creative Lents

Office 7916 SE Foster rd 1941 5,600 SF $6.43/SF/Yr with a triple net

lease of $3.00 SF/Yr.

6. Mt. Scott

Community

Center Events

5530 SE 72nd Ave 1926 Event spaces

with capacity

50+

$60-80 per hour

7. Tabor Space

Events 5441 SE Belmont St 1910 1,025 - 1,600

SF $25-55 per hour

8. Wikman-Arleta Building

4420 SE 64th 1918 4,251 - 5,187

SF

Recommendations:None of the Retail or Office comparable sites have the historic character of the Carnegie-era Wikman-Arleta building. While, historic charm does not always equate value in the rental market, the Wikman-Arleta Building could reasonable rent retail space for $10-$13 per SF/Yr and office space for $6-$9 per SF/Yr. Both of the event space comparable sites on likely on par with the experience the Wikman-Arleta building could provide. Given the novelty of the building an hour rental could range from $25-$80 per hour.

If ROSE Community Development and its project partners are interested in leaving a large portion of the rentable space in the Wikman-Arleta Building as flexible space for community events, securing a small retail use should become their priority. If ROSE Community Development and the project partners are unable to find retail tenant, they can consider using the space solely for office tenants, possibly in the form of a business incubator.


Sources:THA Architecture, Wikman Building (1204) PDC DOS Study Fee ProposalMultnomah County, The Wikman Building/Arleta Library Surplus Report, December 2011

Additional information gathered from:U.S. Decennial Census, http://factfinder2.census.govGreater Portland Pulse, http://portlandpulse.org/Cushman Wakefield, http://www.cushwake.comCraigslist, http://portland.craigslist.org/Mt. Scott Community Center, http://www.portlandonline.comTabor Space, http://taborspace.org/ROSE Community Development, http://rosecdc.org/The Wikman-Arleta Building Project, wikman-arleta.org