Commercial Condos: A Concept Worth Considering

There’s a trend in commercial real estate that represents another option for developers who are interested in developing commercial property: commercial condominiums.

It’s a real estate concept that’s relatively new to the Portland market. Yet it’s very common in other parts of the country—Atlanta, Phoenix and San Diego for instance—and it’s increasingly popular on its merits. It can replace the model wherein developers lease office or warehouse space to small businesses. Instead, developers sell small sections of their commercial properties to small businesses that desire to own rather than rent or lease.

There are local examples of this approach right now. The mixed-use Pearl District has commercial condos. So do outskirt submarkets such as Tualatin, Hillsboro and Wilsonville, where industrial sites dominate. It's also been used in rural areas throughout Oregon.