Real estate development and investment firm Industrial Realty Group, LLC (IRG) recently announced the acquisition of Santiam Industrial Center in Stayton, Ore. Nationally recognized as a leader in the adaptive reuse of commercial and industrial real estate, IRG operates a portfolio of more than 150 properties in 31 states, which includes more than 100 million square feet of rentable space.

According to IRG statements regarding the Stayton investment, there are few industrial properties in the area that can compare to this asset. Centrally located between the Portland and Eugene markets within Oregon’s agriculture corridor, the mid-Willamette Valley property boasts quick and convenient access to Highway 22 and Interstate 5. Incorporating 600,000 square feet of Stayton industrial space across 37 acres, the Santiam Industrial Center is well-positioned to provide industrial, manufacturing, office, food processing, freezer and refrigerated space to the market.

IRG has already begun facility improvements that will upgrade and revitalize the property in several phases of construction, and Santiam Industrial Center will remain a multi-tenant property going forward. Future tenants will share the roster with the U.S. Department of Forestry and the Oregon Potato Company, which already occupy a portion of the facility. Additionally, IRG has tapped Capacity Commercial Group and First Commercial Real Estate to lead leasing for the property.

“Our goal in Stayton is to lease the property to dynamic companies which will provide significant job opportunities,” said Stuart Lichter, president of IRG. “This facility once housed Stayton’s major employer for many years. We want to bring economic and job opportunities to the community once again.”

According to CommercialEdge market research data, industrial real estate rents in Portland recorded an increase of 5.6% since January 2022, with new leases signed at an average of more than $10 per square foot at the close of last year. What’s more, the national industrial real estate report published by CommercialEdge in January showed that construction activity in the Portland industrial market incorporated 1.72 million square feet of new industrial space that was under construction as of December 2022.

Among several key highlights regarding industrial markets in the Western U.S. region, the report also noted that demand for industrial space in Southern California had become so intense that the spillover had reached markets that were several hours away from the ports of Los Angeles and Long Beach. One such example is Phoenix — a six-hour drive away — where rents grew 7.1% throughout 12 months, despite more than 21 million square feet of new Phoenix industrial space being delivered last year.

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