Kevin Adatto talks Pacific Northwest retail center trends with Portland Business Journal
PORTLAND, Ore. (Feb. 25, 2025) — Lack of retail concentration, low vacancies and an influx of first-time homebuyers in Portland’s southeast metro area are leading to favorable investment opportunities in existing shopping centers — when they become available.
That’s according to Northmarq Managing Director Kevin Adatto, who is based in our Portland office and a co-leader of Northmarq’s recently-launched National Shopping Center Group.
Along with Sean Tufts, Scott Frank and Joe Dugoni, Adatto led the recent $39 million sale of Milwaukie Marketplace — a multi-tenant, grocery-anchored retail center in suburban Portland. After the sale, he spoke to the Portland Business Journal about the current landscape of investing in retail centers throughout the Pacific Northwest.
Considering the costs of building new retail centers, coupled with higher tenant rents and prioritization of how to develop land parcels, Adatto said existing grocery-anchored centers continue to be desirable.
“Retail remains strong, with grocery-anchored shopping centers emerging as one of the most desirable asset classes in the sector,” Adatto said. “Historically, fewer than half a dozen grocery-anchored centers trade annually across Oregon, Washington, and Idaho, creating significant demand when one becomes available. The combination of limited new construction and strong operational performance continues to attract both private and institutional investors, driving expansion in the region rather than sales.”
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