Johnson Economics

Johnson Economics and Mackenzie worked for a regional consortium of public and private stakeholders— including Metro, the State of Oregon, Port of Portland, Portland Business Alliance, and the Oregon Chapter of NAIOP, the national commercial and industrial development association—to inventory and identify infrastructure and policy strategies for industrial land in the Portland metropolitan area.

Performed in two phases, the project produced a GIS-based industrial site inventory based on development readiness. Work included identifying the ten most strategically important industrial sites and conducting a thorough analysis of development constraints, detailing the actions/requirements/costs for addressing the barriers to development readiness in the context of the highest market opportunity. Work specifically included the identification of short and long-term transportation infrastructure needs and developing planning level cost estimates to construct necessary improvements. Johnson Economics developed a model to evaluate the marginal impacts of infrastructure investments on market readiness as driven by investment return. This model also estimated the economic benefits in terms of jobs, output, and payroll as well as state and local fiscal impacts.

Key outcomes from this project included the identification of three sites with immediate market opportunities, two of which are currently under development agreements. Further, our evaluation model and methodology are being replicated elsewhere in the region, with 21 sites currently under study in Clackamas County and funding in place to study over 20 additional sites in Clark and Washington Counties.

Johnson Economics prepared a market analysis for the Port of Portland's Troutdale Reynolds Industrial Park. The analysis evaluated the demand for industrial space by product type, projecting market balances and achievable pricing. The outcome was a recommended development program for the parcelization of the site, driven by projected industry trends.

Johnson Economics has worked on a series of due diligence analyses for Specht Development for speculative industrial development within the Portland metropolitan area. Use types have included speculative office space, flex space, warehouse/distribution, and industrial condominiums. Markets evaluated include Airport Way/Columbia Corridor, Tigard Triangle, Tualatin, and Salem markets.    

Johnson Economics evaluated the retrofit and redevelopment of a historic building at NW 3rd and NW Davis Street in Portland’s Chinatown into a 30-room European-style boutique hotel. The project offers a range of room types, from hostel-type bunk rooms to private queen suites, totaling over 100 beds. Other notable features include a rooftop gastropub, a common meeting area, bike rentals, and other services. The hotel is currently independently operated.

Johnson Economics completed a market analysis of overnight lodging and conference demand within the City of Beaverton. The research included evaluation of opportunities for various submarkets within the city and considered a range of lodging options within each submarket. Our work for Beaverton included a financial assessment of a downtown hotel/conference center.

Johnson Economics has prepared a series of due diligence analyses for Schnitzer NW concerning an acquisition of land and potential improvements within the Portland and Seattle metropolitan areas. The primary use types have been speculative office space, flex space, and warehouse/distribution. 

At this time, specific assignment details are confidential; however, the work included projects in Bothell, Bellevue, Kent Valley, Hillsboro, and Beaverton. 

Johnson Economics prepared a market analysis for the Port of Portland's 203-acre Vista Business Park. The research evaluated the demand for industrial space by product type, forecasting market balances and achievable pricing. In addition, our team investigated the appropriateness of current zoning on the site and recommended modifications. The firm subsequently prepared a marketing strategy for the park as an Eco-Industrial concept, analyzing the targeted industries and presenting different approaches to market the area.

Johnson Economics prepared a market feasibility analysis for a planned 450-acre business/industrial park in Richland, Washington. The project included a development program/strategy with phasing, a mix of lot sizes and prices, and likely target industries. Specific issues dealt with in this assignment included the impact of federal leasing restrictions on the project.  The project was developed along with the Horn Rapids master-planned community, a high-end golf-oriented community in Richland. Key tenants to date include manufacturers and government contractors.

In 2015 Johnson Economics and Mackenzie teamed with Business Oregon to update and modernize Business Oregon’s Industrial Site Certification Program. This comprehensive three-phase project combined data analysis and interviews with local/state recruiters and site selectors to determine a range of targeted relevance to the Oregon economy. The project also included a complete overhaul of the program application process and a marketing strategy for promoting certified sites on a global scale. Key deliverables for this project included a model to inform industry-specific workforce needs and the development of a new Business Oregon Industrial Site Need Matrix. The previous version of this matrix, also produced by Mackenzie, is broadly referenced by communities and other firms to address the employment site needs element of the Economic Opportunities Analysis.

Mackenzie prepared a development strategy for the North Industrial Area within the Hillsboro UGB - including infrastructure improvements, a comprehensive natural resource mitigation strategy, aggregation strategies, and public financing tool options - for parcel-specific projects to create five development-ready sites. Johnson Economics identified alternative funding options and analyzed appropriate target industries and markets based on site configuration, utility services, transportation/circulation, and proximity to suppliers and customers.

The team at Johnson Economics completed a detailed economic and fiscal impact analysis for a 7,400-acre master planned destination resort community in Cle Elum, Washington. The project will include 5,000 housing units, overnight lodging, and two 18-hole golf courses.  The development included The Lodge at Suncadia, a full-service condominium hotel featuring 254 rooms and a state-of-the-art conference center. The work also included an evaluation of potential lot absorption and estimations of timings for the housing buildout.

Johnson Economics completed a thorough market and financial analysis for The Allison Inn and Spa, a boutique hotel and conference center in one of Oregon’s premier wine regions. The property has 12,000 square feet of dedicated function space. Our analysis included case studies of similar properties in the Napa Valley area, as well as financial analysis of the project.