U.S. Bank Departure from the Big Pink Skyscraper is Indicative of Portland Urban Decay

PORTLAND, Ore — The decision by U.S. Bank not to renew its lease in the Big Pink skyscraper is another blow as urban decay erodes downtown Portland.

Yesterday, the bank told its employees that it will be vacating the 222,000 square feet of office space in the downtown area riddled with crime, open drug use, and graffiti.

Despite a 420-pound robot watching the property and giving feedback to security personnel on site, the decision by the bank to vacate the property as an anchor tenant is a massive blow to Unico, the property management company that leases space in the Big Pink.

Big Pink Skyscraper Becoming a White Elephant

The skyscraper is a prized client in the Unico portfolio, but with more than half of its one million square feet of leasable space standing empty, the Big Pink at 111 S.W. Fifth Ave. is fast becoming a white elephant.

Data from Colliers Real Estate Consultants reveals that 583,000 square feet are now available for rent in the building. The U.S. Bank departure follows on the heels of law firm Miller Nash and pollster SurveyMonkey, who vacated 100,000 square feet after declining to renew their leases last year.

At the end of last year, Portland ranked at the top of the 50 largest downtown office markets in the nation with the highest vacancy rate. Nearly one-third of central business district office space stands empty.

The announcement by U.S. Bank is a severe setback for Unico, whose property portfolio has suffered in the wake of the pandemic and the growing culture of hybrid schedules – a flexible work module allowing employees to work between the office and home.

The Bank’s Departure is a Severe Blow to Downtown Portland

The decision by U.S. Bank to vacate the skyscraper is a severe blow to downtown Portland that will lose a significant business to suburban neighbors, says Unico executive vice president Brian Pearce. He says the decision is ‘dramatic’ and indicative of the perception of the condition of downtown Portland.

Pearce says everyone at Unico feels ‘disheartened’ after working closely with the U.S. Bank for the last four years, addressing concerns and encouraging employees to return to downtown Portland.

The Bank Will Retain a Presence in Downtown Portland

In an email to employees, U.S. Banks says it is not exiting downtown Portland and will continue to serve clients at its four local branch offices and its client center at 900 S.W. Fifth Ave. The email also assures employees that no job cuts are expected to take place.

The bulk of the staff from the Big Pink will relocate to 365,000 square feet in the U.S. Bank-owned Columbia Center in Gresham. Sales teams will be moved to Vancouver or one of the four downtown Portland branches. Most of the staff relocations will happen before the end of this year.

U.S. Bank is a major Portland employer with 3,144 staff, according to the most recent Book of Lists in the Portland Business Journal.

The Takeaway

Creeping urban decay in the Portland central business district is highlighted by declines in hotel occupancy rates and leasable real estate, and the city’s failure to recover from the effects of the pandemic was earmarked by riots and protests.