A Real Estate Market on the Rise
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Roger Qualman recalls vividly the event that first sparked his interest in the prospect of Clark County's commercial real estate evolution.
He attended a business luncheon in Vancouver in 1984, where the keynote speaker talked of the county's advantages for attracting companies as compared to the Puget Sound region, which was running out of big sites, and over Spokane, too distant from larger metropolitan areas.
With its open land tracts, "Clark County was the logical place to grow jobs," said Qualman, 62, executive vice president of NAI Norris, Beggs & Simpson.
The presentation convinced Qualman and other executives of the Portland-based commercial real estate brokerage firm to open a Vancouver branch in 1985. The privately owned company markets and sells retail, office, rental housing and industrial land and buildings. It also manages commercial properties and provides loans for commercial projects throughout Vancouver and Portland.
Qualman is one of seven owners of Norris, Beggs. Others include Charlie Klier, who also works from the Vancouver office, specializing in rental residential properties.
This month marks Norris, Beggs & Simpson's 75th year in business.
Portland Mayor Tom Potter issued a proclamation to commemorate the company, founded during the Great Depression in 1932.
The celebration passed with little fanfare on the Washington side of the Columbia River, said Qualman, but the Vancouver office will likely continue to play a greater role in Norris, Beggs' overall performance.
Qualman expects a gradual shift in the volume of southbound commuters that he sees every morning from the windows of his fourth-floor office in downtown's West Coast Bank Building.
"We're a work in progress," Qualman said. "We'll get more than our share of projects on this side of the river because there's room."
His Vancouver staff is part of the progression. The office opened with three employees and now employs 15. In 2005, the company had a banner year when transactions grew by 33 percent to $74.8 million and its portfolio of property managed increased by 17 percent to $66.6 million that same year.
"The stars lined up for us that year," Qualman said.
Key projects included office leasing that brought six businesses to the downtown Vancouvercenter office tower, the sale of several income-producing properties and work that enticed Virginia-based DollarTree to build a 650,000-square-foot distribution center in Ridgefield.
This year, business has held steady with slower growth, Qualman said. He foresees a similar pattern this year, if interest rates for commercial lending stay put.
"When interest rates are high, values are low. It's an inverse relationship," he said.
Investment trends
Qualman, who started his commercial real estate career in the 1970s, when interest rates were historically high, said he's witnessed numerous changes since then as interest rates drifted downward.
"It's made real estate investment into an asset class that competes with stocks and other negotiable instruments," he said, "that's exceptionally good for the real estate business."
Qualman sees the trend continuing through the decade.
"There's been a recession at the end of every decade since I've been in the business," he said. "I believe in cycles, and I think we're apt to just talk ourselves into one in 2010."
Qualman predicted Clark County would continue to play an important role as a relief valve for Portland metropolitan area growth, attracting a stream of new office, industrial and retail developments.
His staff of nine salespeople carries approximately 100 listings among them, with office sites that include: the 120,000-square-foot Stonemill Business Park; 190,000-square-feet of office space planned for The Landing, a $215 million development at the former Evergreen Airport; and 36,102 square feet of combined space on the fifth and sixth floors of The Columbian's new building.
Office occupancy rates in Clark County stood at 17.9 percent in the fourth quarter of 2006, among the highest in the Portland area. Qualman foresees a turnaround in the office market, as plans move forward to develop Vancouver's downtown waterfront into condos.
He believes the activity will attract more businesses to the downtown core, especially from companies that employ young, tech-savvy professionals who enjoy urban living.
"Just about every West Coast city is sprouting downtown housing," Qualman observed. "Why? It's an idea that's time has come, and the young people really like it."
NAI NORRIS, BEGGS & SIMPSON
What: Privately owned commercial real estate brokerage firm with offices in Vancouver, Portland and Seattle.
Established: 1932 in Portland; 1985 in Vancouver.
Vancouver site: 500 E. Broadway, Suite 410.
Partner and executive vice president: Roger Qualman.
Looking ahead: Clark County's commercial real estate market will continue to attract interested retail, office and industrial users and buyers as long as interest rates hold steady.
The Vancouver Columbian - April 25, 2007 - Cami Joner
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