For Vancouver Sign co-owner Dick Miller, the time couldn't be better for his business to expand.
Even in a regional economy stuck between contraction and growth, Miller is riding a wave of local companies taking advantage of highly-competitive commercial and retail lease rates to upgrade their operations.
Last week, Vancouver Sign agreed to lease a 40,000-square-foot space at Hart Industrial Park on Andresen Road in Vancouver. In March, the 80-year-old company plans to vacate its Highway 99 location for one nearly quadruple in size.
"Over the years we've expanded to the point that we didn't have room for parking or storage," Miller said. "So it was about getting big or getting smaller … and we chose getting bigger."
Vancouver Sign joins other local firms like Turner Engineering, which recently decided to relocate from Columbia Business Center to a larger facility at the Port of Vancouver (see "A tenant's market," pg. 6). And though every company has different reasons for expanding, one common element sticks out in the barrage of recently-closed commercial real estate deals – favorable lease terms for tenants.
With some experts predicting a second wave of foreclosures hitting the commercial real estate market early next year, uncertainty still reigns. However, longtime commercial brokers like Byron Roselli at Eric Fuller & Associates say the time is ripe to negotiate new leases.
After a deal to construct a new building in Ridgefield fell apart, Miller said the decision to sign with landlord Joe Hart for the Andresen Road facility was an easy one. "This move will make us more efficient," he said. "We won't be stumbling and bumbling over each other."
Considering the competitive nature of the region's sign-making industry, saving time and money may give Miller's company a significant advantage in a crowded market. According to Miller, Vancouver Sign's competitors include Garrett Sign Company, as well as three other businesses based in the Portland area.
Garrett Sign owner Steve Taylor said his company had no plans to expand on their 15,000-square-foot facility, located opposite the Old Columbian Building on Harney Street in downtown Vancouver. "I really don't want to do anything right now with the economy up in the air like it is," Taylor said. "We have a good setup right now."
After slipping three months ago, Garrett Sign's business rebounded due to big orders stemming from Big Al's new entertainment complex in Beaverton and Columbia River Bank's new Clark County branches.
Business has also been good for Vancouver Sign, driven by an uptick in requests for new signage designs, according to Miller. "There's a lot of rebranding going around," he said.
Jan Harte, a certified advisor for the Small Business Development Center at Washington State University-Vancouver, agrees.
"It's all about watching what's going on with customers and what's going to get their attention," said Harte, attributing some of the increase in sign-making orders to business owners changing logos and incorporating website information into all forms of company advertising.
Some small companies are also opting for more cost-effective and less-permanent signage, such as magnet-backed boards and nylon banners, according to Harte.
"It's certainly safe to assume that there are a lot of businesses adapting to a different marketplace," she said.
