SunTech_Property for Sale
SunTech_Property for Sale
3295 NE 83rd Ave, HIllsboro, OR, 97124, US

SunTech

Asset description

JLL, as exclusive advisor, is pleased to present the opportunity to acquire the 100% fee simple interest in 3295 NE 83rd Ave (hereafter “the Property” or “Site”), a 63,024 square foot office building located in Hillsboro, Oregon as building 2 of SunTech Corporate Park. This strategically located Property has the potential for an adaptive conversion to data center and is located within an IP (Industrial Park) zone where permitted uses include data centers which minimizes timelines, risk, complexity, and costs associated with development.


Located in the heart of Oregon’s “Silicon Forest”, Hillsboro boasts abundant power coupled with unparalleled access to long-haul fiber optic cables, making it a desirable location for technology companies to cluster. Given these attributes, Hillsboro has quickly become one of the highest performing data center markets in the world and has experienced record absorption and strong demand with ever decreasing availability of suitable land for development. Hillsboro offers sought-after infrastructural amenities – namely abundant, clean power coupled with unparalleled access to long-haul fiber option cables that originate in Asia. Additionally, Hillsboro is a significant tech hub with major employers such as Intel, Microcomputer software company*, Apple, HP, Salesforce and many more.


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Attributes

Building area Net
63,024 sf
Year built
2000

Media

Investment highlights

  • Prominent data center hub: Adjacent to the Hillsboro fiber ring and main carrier lines, the Property is located directly within a major data center cluster. The Hillsboro market is renowned for its rapid expansion, positioning itself as one of the world’s fastest-growing data center markets. It has emerged as a strategic hub, attracting providers who leverage affordable clean energy, extensive metro and dark fiber networks, and close proximity to subsea cables that serve Asian markets. Furthermore, Hillsboro offers favorable tax incentives compared to its western counterparts such as California, Arizona, and Washington.
  • Ample capacity in a supply-constrained market: In the highly coveted Hillsboro data center market, the availability of development land specifically zoned for data centers is exceptionally scarce. Among the limited options, 3295 NE 83rd Ave stands out as one of the few sites in the submarket capable of delivering 9 MW+ of power capacity through feeds from two separate Portland General Electric substations, which are known for their high reliability and infrastructure supporting all local data centers. This unique positioning within the market underscores the rare investment opportunity presented by the Property, making it a highly desirable choice for data center development in the thriving Hillsboro area.
  • Attractive zoning and incentives: The Site is located within an IP zone, permitted uses include data centers which minimizes timelines, risk, complexity, and costs associated with development. It is strategically situated within a designated Enterprise Zone (EZ) that encompasses a significant portion of Hillsboro’s remaining, available industrial lands. Leveraging the EZ program, Hillsboro provides a compelling incentive for new property investment, granting exemptions on new real property and equipment for a period of three to five years. Source: City of Hillsboro
  • Urban Growth Boundary limits competition: Under Oregon’s land use planning regulations, each city must establish an Urban Growth Boundary (UGB) to control urban sprawl onto agricultural and forested lands. UGBs create a supply-demand dynamic that significantly reduces vacancy rates and opens up prospects for neighboring communities as industries expand. The Property’s feasibility in Hillsboro serves as evidence of the scarcity of comparable sites not only in Hillsboro but, also in Portland and surrounding areas. Source: Oregon Metro
  • Strong market fundamentals: The Site enjoys exceptional connectivity advantages in Hillsboro, being conveniently located only 500 feet away from the Hillsboro Fiber Ring with the potential for direct fiber routes to the regional Internet Exchange. It benefits from a robust network infrastructure comprising both underground and above-ground dark and lit fiber pathways. Furthermore, its proximity of less than 1 millisecond to over 11 subsea cable landing stations. 
  • Supply and demand in the region
    • Supply: There are little to no data center expansion opportunities in Hillsboro that can compete with the Site from a timing, cost, and potential scale perspective. Located in one of the nation’s fastest-growing data center submarkets, the availability of land sites in Hillsboro is decreasing. The number of new data centers under construction in the Hillsboro submarket has consistently increased year-over-year for the past five years, with a significant 180% surge in MW under construction in 2022.
    • Demand: Hillsboro has rapidly established itself as a highly influential global data center community. In 2022, the Hillsboro submarket witnessed extraordinary growth, achieving a record-breaking pace of over 213 MW in positive absorption and showing strong indications of increased demand for colocation space in the Portland region. This surge in demand represents nearly 200% increase compared to 2021 figures. The majority of this new demand is driven by West Coast-based technology corporations, accounting for at least 90% of demand growth. Furthermore, there are multiple entities with power requirements exceeding 30 MW actively considering colocation options in Hillsboro.
SunTech 4_Property for Sale
SunTech 4_Property for Sale

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Last updated
Sep 18, 2023