This month, Hoffman Construction, the biggest construction company in the area, will relocate from its long-standing headquarters in downtown Portland to a suburban office facility that it purchased in December.
Hoffman’s vice president, Dan Drinkward, stated that the construction company paid approximately $34 million for the five-story structure located at 5500 Meadows Road in Lake Oswego.
When it relocates on January 25, Hoffman and around 150 of its staff will occupy about 50,000 square feet on the upper two floors, according to Drinkward.
The local business world was rocked by the news last year when The Oregonian/OregonLive first revealed that Hoffman intended to quit Fox Tower. Hoffman was one of a growing number of big businesses with headquarters and key executives located in the city. In the end, city officials were unable to persuade the rapidly expanding business, which generated $5.6 billion in revenue in 2023, to remain.
In recent years, a number of businesses have left Portland, moving to the suburbs due to safety concerns and increased costs in the downtown area.
According to the most recent data from real estate agency CBRE, 32.5% of offices in Portland’s central business district are vacant. Hoffman is relocating to the Kruse Way office park, which has fewer office openings—25.2%.
Hoffman, which has worked on well-known regional projects including the Nike headquarters in Washington County and the Oregon Convention Center, will be able to expand in the future with the ownership of the Lake Oswego office building.
According to Drinkward, we desired to be in charge of our own fate.
Hoffman is investing more than $50 million in the Portland area, he added, between the property purchase and a significant expansion of the company’s Northeast Portland location, which is home to a number of subsidiaries and affiliated businesses around Northeast Killingsworth Street and 80th Avenue.
Last year, the vice president of the corporation refused to say why or where the company was going when it left downtown. Within Fox Tower, which was built in 2001 under the general contractor’s supervision, Hoffman occupies 42,000 square feet.
He stated on Thursday that we owed it to ourselves to consider all of our choices because our lease was up.
Drinkward stated that although there are some short-term difficulties, the company is still optimistic about downtown Portland in the long run. “Company officials hope the 12-member City Council and new Mayor Keith Wilson will work with the private sector to help Portland regain its status as one of the most desirable cities in the country,” he said.
Plans for the James Beard Public Market, which will be located close to Pioneer Courthouse Square, are among the encouraging initiatives he highlighted.
“Every bone is still present,” Drinkward stated. We hope that public safety concerns keep getting better.
–Jonathan Bach covers real estate and housing. You can contact him by phone at 503-221-4303 or by email at [email protected].
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