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Small Business Tenanting & Leasing

Source: PDF pp. 410-412 ↗ · raw: 410 · 411 · 412

Breadcrumb: Service Area Summaries > Community & Economic Development > Prosper Portland > Small Business Tenanting & Leasing

City of Portland Fiscal Year 2026-27 Proposed Budget Community & Economic Development > Prosper Portland > Small Business Tenanting & Leasing Small Business Tenanting & Leasing Budget Revenues by Fund 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed Internal Revenues $0 $616,482 $687,140 $707,754 General Fund $0 $616,482 $687,140 $707,754 Grand Total $0 $616,482 $687,140 $707,754 Program Expenses by Major Object Program expenses only include personnel, internal materials and services, external materials and services, and capital. 2023-24 Actuals 2024-25 Actuals 2025-26 Revised Budget 2026-27 Proposed External Materials and $0 $662,138 $687,140 $707,754 Services Grand Total $0 $662,138 $687,140 $707,754 Program Description and Goals Prosper Portland's commercial tenanting activities involve direct leasing, property management, and tenant improvement investments. These tenanting activities support businesses looking to open physical retail locations, increase access to affordable commercial space for small businesses with a brick-and-mortar presence, and revitalize Portland's commercial corridors and business districts with products and services that cater to local community and regional needs. Prosper Portland operates a portfolio of properties citywide and within TIF districts, managing and leasing those properties to support small businesses, including through access to affordable commercial space and with the following goals:

  • Strategic tenanting of spaces to support businesses to serve and anchor adjacent communities;
  • Flexible lease terms tailored to help a business start, grow, and stabilize; and
  • Support with tenant improvement grants and build-out through leases and direct small business grants. Direct leasing supports communities and businesses through operation of commercial properties in alignment with other Prosper Portland programs in business growth, job creation and inclusive entrepreneurship. Leasing of operating properties includes tenanting commercial spaces at The Nick Fish and Lents Commons, in N/NE, and the recently completed Kathleen Saadat in the West End. Operations of other commercial assets include public garages adjacent to businesses, residents and visitors including the Convention Center Garage, Station Place Garage, RiverPlace Garage, as well as Union Station. 410

City of Portland Fiscal Year 2026-27 Proposed Budget Prosper Portland offers an Affordable Commercial Tenanting (ACT) grant program citywide to increase economic opportunity for small business owners who face barriers to opening and operating a brick-and-mortar business. Historically, there have been disparities in access to capital that prevent underserved populations from participating in wealth-creation opportunities through business ownership. By providing funds for tenant improvements and technical assistance, ACT helps bridge the gap in capital access, creating opportunities, and diversifying Portland's business community. In addition to owning and master leasing space for affordable commercial initiatives and managing the ACT grant program, Prosper Portland serves as the City's administrator for the Affordable Commercial Space Bonus Program. On June 6, 2018, the Portland City Council adopted an Affordable Commercial Space Bonus (ACS Bonus) as a part of the 2035 Comprehensive Plan Code Reconciliation Project and directed Prosper Portland to serve as administrator. The Bonus allows development proposals in certain commercial zones to access a floor area ratio (FAR) and height Bonus if they provide on-site affordable commercial space or pay into the Affordable Commercial Space Fund. On June 13, 2018, the Prosper Portland Board adopted Resolution No. 7277 establishing Administrative Rules for the Affordable Commercial Space Program. Services Leasing Prosper Portland-managed property, tenant improvement supports, Affordable Commercial Tenanting Grant Equity Impacts Prosper Portland focuses on assisting businesses that have been displaced or are at risk of displacement due to gentrification, have limited access to capital, have not benefited from generational wealth, are first generation business owners, are first- generation college graduates, and/or provide a product or service that benefits a historically underserved population. As of January 1, 2025, Prosper Portland manages and directly leases 182,000 sf. ft across seven properties as operating commercial assets. The agency has currently leased 140,000 sq. ft. to more than twenty-five local businesses, at or below market rents. In FY 2024-25, Prosper Portland invested more than $2,000,000 in building upgrades and tenant improvements. The agency successfully tenanted a new childcare center at the Nick Fish that can accommodate up to one hundred children, as well as preserved both a longstanding bike repair business and community wellness studio in the Lents Town Center. The team continues to support provision of commercial space at the Nick Fish, Lents Commons, and now the Kathleen Saadat for small, local, priority businesses. The target goal by the end of FY 2026-27 is to lease an additional 10,000 sq. ft. or more to five to ten additional Portland-area businesses. Changes to Program In October 2023, Prosper Portland's board approved the Affordable Commercial Tenanting program guidelines as part of delivering on Advance Portland. Previously, Prosper Portland's leasing and tenanting activities and related staffing have been largely funded via tax increment resources within districts that are now ended or in the process of ending without resources remaining to continue to support small businesses within those spaces. The ACT program provides funding in districts with remaining tax increment and throughout the city, to property owners and small business owners to facilitate access to commercial space and support inclusive business growth. Grant funds may be used for tenant improvements, space-related soft costs, and permitting support to ready space to open for business. Technical assistance may also be available for business support via other Prosper Portland offered economic development programs. 411

City of Portland Fiscal Year 2026-27 Proposed Budget Resources

  • General Fund: Prosper Portland's ongoing portion of General Fund is projected at a similar level as FY 2025-26.
  • Affordable Commercial Tenanting Fund and Tax Increment Finance: Direct grant resources to small businesses are available citywide with approximately $500,000 in the ACT Fund and additional resources in tax increment finance districts.
  • Property-Specific Funds: In districts where Prosper Portland is engaged in direct leasing operations, property-specific budgets have been allocated to enable the provision of commercial space under flexible terms and conditions that enable small, local, priority businesses to overcome high barriers to entry associated with retail spaces in new developments.
  • Strategic Investment Fund: Supports staff who work on citywide economic development and investment goals, who are not fully funded through Prosper Portland's General Fund allocation. 412

Parent: Prosper Portland · PDF: pp. 410-412 ↗