While the current national economic slump has fatally wounded some retailers, others have maintained the strong brand equity and market share to thrive despite the hard times that have charaterized most industries. Due to the successes and failures of both types of businesses, downtown Portland could be looking drastically different in the near future as some major chains are in the midst of planning big moves.
The first domino to fall seems to be the as yet unconfirmed closure of the Williams-Sonoma store at 638 SW 5th Avenue, in the Kress Building. While the high-end kitchenware chain has yet to announce it, it’s expected that that location will be consolidated into Williams-Sonoma’s NW 23rd Ave shop leaving the Kress Building and Kress Annex, a large stretch of retail fronts on Morrison between SW 5th and SW 6th Avenues, virtually empty.
That won’t last for long however. Beaverton-based Nike is looking into moving their Niketown retail store, currently located at SW 6th and Salmon, into the space vacated by Williams-Sonoma. Niketown’s current digs are a bit undersized, and the new space it’s seeking, said to be between 20,000 and 25,000 square feet, would be a significant upgrade. That particular estimate also means that Nike would be taking two floors of the Kress Building.
Even if Nike passes on the new store, the area will still be welcoming a new tenant in the form of Sephora, a French cosmetics chain. Owners of 250 stores across the US, including in Washington Square and Clackamas Town Center, Sephora has agreed to lease 5,200 square feet in Kress Annex.
Finally, coming as no surprise to anyone who has ever seen their constantly-at-capacity Pioneer Place store, personal electronics juggernaut Apple is said to be in the market for a significantly larger space as well. While there’s no official confirmation from the company, it’s rumored that Apple is looking into leasing up to 18,000 square feet on the corner of SW 5th Avenue and Yamhill, a space previously inhabited by Saks Fifth Avenue.
Of course, it would be almost difficult to imagine such popular retailers shifting locations without Starbucks stealing some of their thunder. The Seattle-based coffee shop is discussing a space at SW 4th and Morrison, next to the future Sephora location. It’s not likely it would be the usual Starbucks however, as the 2,800 square feet for which they’re negotiating is significantly larger than most area Starbucks shops.
While the recession isn’t over yet, it seems that one of Portland’s retail sectors is ready to persevere regardless. And although construction hasn’t begun yet on these projects, and in many cases leases haven’t been signed, it’s plain to see that downtown Portland may have quite a different look in the very near future.
