It’s not a secret that Portland suburbs have been hit harder than the city in these economic times. Foreclosed homes for sale and low sale prices on suburban real estate have taken their toll on the communities around Portland, but residents of the great Northwest are also known for taking a challenge and creatively moving forward into a booming future. The city of Gresham has been crafting a creative response to the economic down-turn, and they’re trying very hard to make sure Portland businesses know about the benefits of opening shop in Gresham.
In order to attract home buyers to the Gresham real estate market, developers and city legislators know that the local small business sector needs to thrive as well – people are looking for homes for sale in areas with high walkability, accessible restaurants and shopping, and local businesses worth supporting and feeling good about. This isn’t a problem in Portland proper, where many chain stores are beat out by locally-owned establishments and almost every area in town has access to good food and entertainment, but in the suburbs like Gresham, local governments have started to change policy and take a hit in order to get local small businesses to set up shop and boost the regional and local economies.
In April of this year, Gresham officials began a program offering thousands of dollars of incentives to new small businesses and existing Portland businesses willing to open up shop in Gresham. Initial business license fees, fees related to Gresham real estate development, and all system development charges, all for a whole year, which can total savings of more than $3000, will be waived. That could make a big difference for local businesses looking to expand to the Portland suburbs, and it may even convince companies who had not yet considered expansion to consider Gresham as a catalyst for economic growth. The economic incentives apply to small businesses moving into Gresham commercial real estate smaller than 5000 square feet in several Gresham neighborhoods, including the historic downtown, Civic district, and Rockwood neighborhood. Businesses are also encouraged to consider the drastic reduction in real estate leasing costs compared to Portland.
More recently, Gresham city councilors and government staff have been taking word of these economic benefits to Portland business to make sure potential investors and business owners really understand the offer that Gresham is making. Think of it as the City of Gresham going out with fishing poles and a bucket of economic incentives as bait, trying to reel in a few successful Portland businesses, but in this scenario everyone is a winner. The city is focused on recruiting coffee shops and restaurants, the kind of economic development that in turn encourages residential real estate growth, but are offering the incentives to many kinds of businesses. Gresham real estate agents have also been out promoting the fee-waivers, which has greatly increased the rate of successful lease closings.
With smart economic policy like this, Gresham has the potential to really change the direction of the suburban Real Estate market. With more local businesses and charming, walkable retail districts, Gresham may have found the key to bringing Portland’s brand of home-grown locally-owned success out to the suburbs, attracting new home buyers and making more jobs.
So far, the fee elimination program has been working very well. Over 20 businesses have used the full incentives, and dozens more businesses have used the business license fee waiver. The incentives saved these businesses nearly $47,000 collectively, yet the influx of successful small businesses will no doubt pay off for the city and surrounding real estate.
The city is willing to lose a bit of money upfront, but if all goes as planned and Gresham Real Estate values begin to rise, the city will see a healthy return via property taxes and the general economic health of the community.
