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City of Lake Oswego
Economic Development Strategy 2026-2029
December 2025September 2026 (DRAFT FOR SUBCOMMITTEE REVIEW)
Vision
Lake Oswego is a center of talent and innovation, where knowledge and creativity support
entrepreneurship, strengthen local businesses, and create quality jobs in a thriving, resilient economy. It is
a community where people can live, work, and play—meeting their daily needs through vibrant, walkable
districts and a rich mix of goods, services, and experiences. Recognized as a premier destination, Lake
Oswego draws visitors to its distinctive businesses and welcoming places, strengthening a connected and
thriving local economy.
Introduction and Purpose
The 2026-2029 Lake Oswego Economic Development Strategy builds on the successful implementation of
the 2022 Economic Development Plan. Three years later, the City of Lake Oswego is working to take the
local economy to a higher level of success in the context of current economic conditions and leveraging
existing community and business assets, partnerships and resources.
The City contracted with Marketek to prepare this Economic Vitality Plan that focuses activities and
actions over the next three years on economic prosperity and jobs and generates/increases tax revenues
to maintain and support the quality of life Lake Oswego's residents enjoy.
To help inform this strategy, in fall 2025 Marketek completed an update of both Retail and Office Market
Analyses. Extensive field work, business and broker interviews, observations from economic development
(-€B-)-partners and data analysis all contributed to the recommended strategy outlined in this document.
In addition, Marketek brings to this assignment best practices and lessons learned from 35 years of
hands-on community economic development experience.
In February 2026, the city hired a Redevelopment and Economic Development Program Manager,
reestablishing dedicated economic development staff for the first time in more than a decade.To support
completion of this plan, City Council formed a Council Subcommittee in March 2026 to work
collaboratively with the new Program Manager in refining the draft and providing strategic direction.The
Subcommittee recommended the completed plan to the City Council for adoption.
Background and Goals
In December 2022, the City Council adopted the Economic Development Strategy and Resource Plan,
establishing a framework to support business investment, job creation, and a vibrant local economy in
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Lake Oswego.To implement key elements of the plan, the City entered into an agreement with the Lake
Oswego Chamber of Commerce.As the community's primary business-focused organization, the
Chamber was well positioned to lead business outreach, education, and engagement efforts in
partnership with the City.
Under the agreement, the Chamber's work focused on three primary areas:
• Business information collection and dissemination;
• Business education and training; and
• Business outreach and engagement.
Over the past four years, the Chamber has successfully advanced these initiatives, strengthening
relationships with the business community and helping implement the City's economic development
priorities. Since adoption of the 2022 plan, the City has also reestablished dedicated economic
development staff with the hiring of a Redevelopment and Economic Development Program Manager
and has adopted new City Council goals to further support business investment, redevelopment, and job
creation.
These milestones provide an opportunity to build on the successes of the 2022 plan, reassess current
opportunities and challenges, and establish updated priorities to guide the City's economic development
efforts over the coming years.
The City's Comprehensive Plan states the Economic Vitality Vision as follows:
We are a community where people can live, work, play and meet their daily needs for goods and services.
We build upon the intellectual capital of the community to attract new ventures, retain local businesses,
and connect to the global economy. We are business friendly and a regional model for employment and
mixed use centers that attract quality jobs.
City Council Goals
The following 20252026 City Council goals and initiatives provide direction for this updated plan:-
Selected strategics in italics from the 2022 plan appear below that will continue to contribute to the City's
economic development efforts.
1. Support business investment and job creation in Lake Oswego
• Continue to partner with Urban Development+Partners on the North Anchor redevelopment.
• Initiate the process to adopt an update to the Lake Grove Urban Renewal Plan. Examine the
geographic boundaries of the district as part of this update.
• Adopt and implement a new Economic and Development Strategy and Resource Plan. Ensure
adequate staff and resources are available to support the development of the economic
development plan to be delivered in the next year.
• Collaborate with the Chamber of Commerce and other community partners to promote Lake
Oswego as a destination for visiting, shopping, dining, and enjoying the arts and events.
• Continue the update of the Foothills District Plan.
*Collaborate with Chamber to promote Lake Oswego as a destination for visiting and shopping
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*Coordinate and cross promote business and community events
2. Plan for change and growth, with a focus on enhancing the community's quality of life and sense of
place
• *Begin a comprehensive review of the Development Code to identify barriers to housing
production and economic development and implement code amendments to address these
barriers.Conduct code review to identify and address barriers to housing production and economic
development
3. Combat climate change. Expanding thc local job base will help balance thc jobs: housing gap, increase
opportunities for residents to work locally and reduce long commutes and pollution.
Community Input
• In the City's 2025 Community Survey'economic development' was identified as the top priority for
what should receive the most emphasis from city leaders for thc futuroover the following two years.
• In a 2024 Chamber of Commerce survey of businesses, the top business issues were: Workforce,the
Economy and the Sign Code.
Economic Development Staffing and Partners
In early 2026,the City will hirchired an Economic Development/Redevelopment Manager who will lead
implementation of the strategy. It is assumed half of this person's time will be spent implementing this
Strategy in collaboration with other economic development partners.The City will alsois also continuinge
its contracted partnership with the Lake Oswego Chamber of Commerce Foundation for specific
responsibilities within the plan. (Note: the Lake Oswego Chamber of Commerce and Lake Oswego
Chamber Foundation are separate but related entities with shared staff. While the city's contract is with
the Foundation,for the purposes of this plan, both entities are referred to as the "Chamber".)
While almost every city in Clackamas County has an economic development manager and program, none
of them operates without strong support from and collaboration with many economic development
partners, the key ones listed below. See Appendix A for a brief overview of their functions.
Economic Development Partners/Resources
Business Oregon Clackamas County Greater Portland Inc. (GPI)
Clackamas Small Business Clackamas Workforce Partnership Oregon Manufacturing Extension
Development Center(SBDC) Partnership (OMEP)
Oregon Economic Oregon Employment Department
Development Association (OED) Oregon Entrepreneurs Network (OEN)
(OEDA)
Oregon Main Street (OMS) Mt Hood Economic Alliance Mt. Hood Territory
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Lake Oswego Economic Overview
Local Economies
Export
Economic generators in local economies have three broad drivers: Oriented
1. Traded sector-export-driven
2. Population driven-commercial centers r
3. Visitor driven-downtown, arts, waterfront, history Economic
Prosperity
goods and services to customers Population visitor
Traded sector businesses
provideDriven Potential
outside of the region.They export goods and import dollars and are
typically part of an industry supply chain, a producer or supplier.
Businesses in the traded sector provide the highest economic
impact to a community. In Lake Oswego,traded sector companies are concentrated within the SW
Employment Area and the Kruse Way corridor.
Population-serving commercial businesses provide basic goods and services to residents, e.g., medical
care, services,groceries.The economic impact of these businesses is much smaller than those in the
traded sector but very important to the local economy and quality of life.
Visitor-serving venues and businesses attract or serve visitors to the community, e.g., hotels, restaurants
and destination attractions. For Lake Oswego,visitor spending could be substantial in boosting the local
small business economy.The economic impact is increased 3-fold when visitors stay overnight and spend
more.The City's planned North Anchor project,including an 8588-room hotel with spa and restaurant,
will have a direct effect on retail/restaurant spending particularly downtown.
The City's top private employers appear in the table that follows by industry and employment with traded
sector employers appearing in the top half. Most employment figures reflect 2024 or 2025 updates.All
but one company is headquartered in Lake Oswego.
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Largest Private Employers in Lake Oswego: 2025
Traded Sector
Employer Industry Employment
Biotronik-Micro Systems Medical Bioscience 550
NAVEX Global Software/IT 400
The Greenbrier Companies Manufacturing/Transportation 260
Logical Position Design & Media 229
Yakima Products Athletic&Outdoor Manufacturing 110
Precision Castparts Corp. Manufacturing 60
Unosquare Software/IT 51
Lightspeed Aviation Manufacturing 50
Other Large Employers
Employer Industry Employment
KinderCare Education 500
Aldrich Financial Services/Accounting 169
Pence Contractors Construction 154
Point Monitor Corp Security&Safety Technology 150
Columbia Bank Banking/ Financial Services 140
Delap Financial Services/Accounting 101
Hoffman Construction Construction 100
UBS Financial Financial Services 95
Sources: Portland Business Journal,GPI,InfoUSA,Marketek
Note:All companies are headquarters locations except USB Financial
Economic Overview
The following table below provides a snapshot of Lake Oswego's current economic conditions.This is
followed by an overview of the City's major economic sectors (private) including the distribution of total
number of establishments, average annual employment and annual payroll. See the 2025 retail and
office market reports for additional details on those sectors. See Appendix B for a summary of Lake
Oswego's industrial market and space available.
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Lake Oswego Economic Snapshot (2025)
Population 41,141
Income (median##household) $142,363
Employment(2024)* 24,506
Self-employed (not incorporated) 9.0%
Unemployment (8/25) 5.2%
Top sector: professional services 35.0%
Workforce Commute
Commute to LO 91.2%
Live &work in LO 8.8%
#of LO residents commuting out 15,470
Space Available Inventory: (2025)
Office vacancy
Kruse Way corridor 20.7%
LO/West Linn 8.5%
Retail vacancy 1.9%
Leakage $781M, 2.1M sq ft
Industrial (171 acres total) <4 acres available
Commercial 24 acres; many not viable
Assessed Property Values** (%of total)
Residential 85%
Commercial 11%
Other 3%
Industrial (171 acres total) 1%
Sources:OED,Census,City of Lake Oswego,Marketek
*Total public+-private
**within Clackamas County
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Lake Oswego Private Sector Snapshot 2024
Av. Annual Total Payroll
Industry Establishments Employment* ($Millions)
Construction 135 1,628 $164.7
Manufacturing 67 775 $77.1
Wholesale Trade 218 995 $146.2
Retail Trade 111 1,186 $48.5
Transportation and Warehousing 17 142 $9.9
Information Services-Technology 153 1,187 $174.2
Finance, Insurance & Real Estate 562 3,173 $437.9
Professional Services & Health Care 1,306 9,651 $960.1
Other Services(except Public Admin) 416 1,515 $85.3
Accommodation & Food Services 135 2,088 $67.9
Total Private Sector 3,120 22,340 $2,171.8
Source:Oregon Employment Department,Marketek
*Employment covered by Unemployment Insurance law
Excludes self-employed, unpaid family workers,some domestic workers,some real estate,insurance agents
LAKE OSWEGO: AVERAGE ANNUAL PRIVATE EMPLOYMENT
Wholesale Trade Manufacturing Transportation and
5% 4% Warehousing
Retail Trade 1%
5%
Information
Services-
Technology... Professional
Services&
Other Services Health Care
(except Public 43%
Admin)...
Construction
7%
Accommodation and Finance, Insurance&
Food Services Real Estate
9% 14%
Source:Oregon Employment Department,Marketek
Note:Total private employment:22,342.Public sector employment:2,164. Total job base:24,506
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Strategic Initiatives
The strategy is organized by fivc six core economic development services performed throughout the year
and throughout the community to create a sustainable, business-friendly environment. While the priority
actions may change from year to year, this organizing framework will remain largely the same.
1. Business VitalityRetention and Expansion
2. Business AttractionRecruitment
3. Customer Attraction
Economic Vitality Marketing
4. Customer Attraction
5. Expand/Revise the Real Estate Inventory
6. Organizing for Success
Each initiative includes a statement of its importance, specific projects/action items with initial steps, lead
responsibility and partners for implementation, and timeline for initiating implementation and m osures
of outcomes rather than activities to track progress. In most instances the principal resource required for
implementation is staff time. However, some financial resources will be important for a limited number of
projects and actions.
Evaluation Framework
This Strategy is intended to be a living document that will be regularly monitored, evaluated, and adjusted
as economic conditions, community needs, and city priorities evolve. Data collection will be ongoing and
analysis will occur at monthly meetings, quarterly and annual reporting, and as part of future updates to
the Strategy. Each initiative includes a combination of both traditional and non-traditional economic
performance measures related to those specific activities. Collectively,these metrics are intended to:
1. Monitor the overall economic health of Lake Oswego.
2. Measure progress toward achieving the Strategy's initiatives.
3. Inform decision-making and guide adjustments for the Strategy's initiatives.
4. Provide meaningful economic data and trends that support Lake Oswego businesses and
community partners.
Business Survey
One of the first implementation tasks of this Strategy will be to conduct a citywide business survey.The
first year, this survey may only include brick and mortar businesses, leaving home-based businesses for
future efforts.This task may then be repeated on an annual or semi-annual basis. Many of the initiatives
will have specific content to include in the business survey. High level descriptions of this content are
included in the action item lists below.
Additional Staff
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While the addition of a Redevelopment and Economic Development Program Manager increases the city's
capacity to advance economic development initiative,full implementation of all initiatives listed below will
require additional resources. Accordingly, it is recommended that City Council consider adding additional
staff as part of the FY27-29 budget process.
To inform that discussion, each initiative below identifies the initial scope of work that can occur with
current staffing levels, along with expanded actions that could be undertaken if additional staff resources
are approved before 2028. If additional staffing is not authorized, implementation of the initial work
program will likely extend beyond the three-year timeframe established by this Strategy.
Initiative 1 : Business Vitality (Business Retention & Expansion-BRE}
Why Important?
A business retention and expansion (BRE) initiative is an important way for the City to demonstrate it
wants and appreciates existing businesses. It should be the top priority of€-P-economic development
staff. Economic developers attest to the fact that 70-80%of all new jobs and private investment occurs
with expansions than through attraction or start-ups. Worth noting too is that retaining existing
businesses in a community is less costly than bringing in and establishing new. An added bonus is that
positive outcomes can help establish and spur a business-friendly reputation for Lake Oswego. Existing
businesses satisfied with the current climate often make the best recruiters or source of leads for new
business. In the case of retail, several Lake Oswego entrepreneurs have opened successive businesses
filling consumer niches in the community.
A proactive connection with existing businesses will help the City understand and respond to local needs
so that major employers and small businesses alike stay,grow and become even more committed to the
community. Further, BRE will help minimize surprises both good (e.g., Hoffman Construction moving to
Kruse Way) and bad (e.g.,Autodesk relocating to Portland).This includes assistance to new and existing
businesses to find new spaces, expand and relocate within the City and to navigate planning, building and
permitting processes. For many business issues from workforce development to capital access,the role of
City ED staff will be making connections with technical assistance and service providers and ensuring
follow-through.
Action Items:
Business Survey • Include questions in the business survey to assess:
✓ Current health of the business
✓ Access to technical assistance and identification of unmet
resource needs
✓ Opportunities for the City and Chamber to better support
business success
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BRE Workplan • Create a business retention and expansion (BRE) workplan. Map out the
phases of Lake Oswcgo's BRE game plan.
• Start with a visit to the County economic development team. Clackamas
County has conducted extensive BRE research on best practices and keys
to success and had its own program in place for 15 years.They are ever
ready to assist Lake Oswego. Be sure to address key issues like business
confidentiality guidelines.
Research/Package • Identify and integrate local/regional/state business support services and
Business Technical resources
Resources&Assistance • Create astarting with Partners/Collaborators list. Clackamas County has
a robust list.
• Create a list of business incentives. While the City has few incentives,
Clackamas County, Workforce boards and Business Oregon have a range
of Business Development&Workforce grants—though most are not
focused on retail.
Program Marketing • Introduce the BRE program to the business community through
City/Chamber newsletters, letter of introduction and one-on-one
promotion. A sample promotional flyer appears in Appendix C.
Major Employer/ • Initiate personal outreach to the following target audiences and aim for
Stakeholder three business visits per month:-
Outreach & Follow-up ✓ Lake Oswego's largest 25 private employers.
✓ Key developers, property managers and owners
• At least 2/3rds of business outreach calls lead to follow-up assistance,
information and referral. Being available for this work is critical to
creating a trustworthy relationship and conveying the City truly cares
about business success.
Retail/Service Targeted • Keep and grow critical business anchors that generate significant foot
Outreach traffic. Take the pulse of 6-8 key businesses in Downtown, Lake Grove
and other large commercial centers twice--my,per year to uncover and
address important issues.The Lake Oswego Chamber is well suited for
this task.
Kruse Way Targeted • Get in front of the major property owners, brokers,tenants in
Outreach Campaign Kruse/Meadows corridor to understand short-and long-term
interests/plans/redevelopment challenges and opportunities. Help
frame future-oriented discussions about the continuing evolution of this
economic center. Identify ways the City and economic development
partners may be helpful.
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• Facilitate small group meetings on special topics/shared interests.
Partner with Greater Portland Inc. who regularly meets with
stakeholders focused on the office market.
• Actively participate in the West End Business Committee to stay abreast
of business issues and opportunities.
• Longer term, facilitate Corridor Visioning. See Initiative 5.
Build Economic • Actively build and leverage relationships within the economic
Development Network, development community, including: Clackamas County, Greater
Partnerships and Portland, Inc. (GPI), WorkSource Clackamas, Mt. Hood Economic
Synergies Alliance, Business Oregon, Oregon Economic Development Association,
etc.
I • Build a key contacts network for business marketing, business
assistance/attraction and to keep Lake Oswego 'top of mind'for
business development. This will include leadership from organizations
above,the real estate community, public agencies, bankers, businesses
and civic leaders.
Business • Identify key topics through business and partner outreach, such as
Roundtables/Special Workforce Availability, Future of the Office market, City/County issues,
Events business strategies for an uncertain economy,
• Special topic programs addressing cross-cutting business issues are
important to stay relevant and useful to the business community.The
West End Business Committee is effective at making this happen.
• Partner with the Chamber, Oregon Employment Department and
subject matter experts to deliver timely presentations.
Action Items(with additional staffing):
Business Survey • In year 2 expand the annual survey to include Lake Oswego's more than
800 home-based businesses
Research/Package • Inventory and compile local/regional/state business support services and
Home-Based Business resources available to home-based businesses
Technical Resources& • Research best practices and successful programs from peer communities
Assistance
that support home-based businesses and entrepreneurs
Entrepreneur and • Engage with ED professional network to identify economic development
Home-based Business best practices for fostering entrepreneurship and supporting home-
Support based businesses
• Evaluate opportunities to support business start-ups, including through
incubation, mentoring, networking, technical assistance,training, access
to capital, and site selection assistance.
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• Develop recommendations for an entrepreneurship support program.
Lead Responsibility:
• City of Lake Oswego for office, industrial, commercial property owners and developers
• Lake Oswego Chamber of Commerce for retail and service sectors
Partners and Collaborators: Clackamas County Economic Development, Greater Portland Inc., specialized
technical assistance providers
Timeline: Year 1 and ongoing
Economic Performance Measures^utcomes/Measurcc of-S
• Businesses served (quantity, methods1
• Business/jobs retained
• Response time
• Success stories of business troubleshooting and problems-solved
• Business expansion (employment, investment$, footprint)
• ca cy r tcs, space leascd if ERE cfforts contributcd to thcsc results
• Intangible results may include improved/positive perceptions of City/community, positive
business climate conveyed through conversation, surveys, business testimonials
Initiative 32: Business Attraction --Diversify Business Mix, rill Vacancies,
Promote Sites
Why Important?
Although Lake Oswego's small commercial and industrial land base limits new development, the retail and
office centers have room for improvement. While attention to business attraction may not generate
immediate results, efforts will have favorable effects over time.
The Re j' " Kruse Way Corridor is a prime example.s high vacancy rate, shifts in office market usage
and preferences arc challenging the viability of large traditional office formats no matter the location
and how well maintained. While the Kruse Way Corridor continues to be a regional asset, with a large
concentration of class A office, the district is experiencing elevated vacancy rates driven by shifts in the
office market, including hybrid work patterns and changing tenant preferences. These challenges are not
unique to the Kruse Way Corridor and are affecting traditional office districts nationwide.The City has an
opportunity to take an active role in helping to reduce the vacancy rate by partnering with property
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owners and managers in the district to aid in identifying assets that can add to the recruitment potential
of the district (ex: food cart pod,trails or parks, anchor symbiotic businesses, etc.), collaborating with It is
rtant forth., Cit„t„collaborat„ in b„sin, ,l pmcnt activities with partners like GPI (the
Portland region's lead economic development organization) and involve mu ltple partners to stay on top of
office market transformations and assisti with potential visioning about the future of the City's largest
employment center.
Regarding shopping districts and retail,the retail market study identified that one-third of all retail
demand (>$1B)from the local market is leaking out.Viewed another way it is being captured by out of
tewfrout-of-town businesses or in some cases online I-€,there is tremendous opportunity for
expansion. Encouraging a dynamic and unique business mix is key to the continuing evolution of
downtown and Lake Grove as destination districts. As one market to probe going forward,thought should
be given to ways to capture spending from Lake Oswego's large and increasingly dominant young family
demographic. In 2025, 35%of the City's population is 34 years or younger; 25.4%are 35-54 years; and
26.2%are 65 years or older.
As successful shopping centers actively manage their tenant mix to optimize foot traffic and sales to
businesses, so too can downtowns, small centers and business corridors encourage retail in a core retail
area to increase foot traffic, spending and shopping attraction. The Urban Land Institute (ULI) has long
demonstrated that increasing the size and concentration of the retail base will result in more consumption
and business sales.
Given current staffing capacity,this Strategy prioritizes business recruitment and retention efforts in the
Kruse Way Corridor because it presents the most significant opportunity for impact. If additional staff are
added, business attraction and retention efforts should be expanded to include retail storefront
businesses, allowing the city to support a broader range of commercial areas and strengthen the
community's overall economic vitality.
challcnging thc,'Lability of large tradition-al officc formats no matter thc location and how
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Action Items:
Business SurveyNorth • Include in the business survey questions regarding:
Anchor Project
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V Current and/or potential new complementary businesses
Continue to prioritize this investment providing timely and st tidy
support to Urban Development Partners and other stakeholders
toward the successful construction and tenanting of this visionary
mixed use project.
V Context-specific questions for Kruse Way Corridor businesses
Kruse Way Focused • Create a business recruitment workplan specific to the Kruse Way Corridor
Business Recruitment • Start with a visit to economic development partners such as the County
Workplan
economic development team and Greater Portland Inc.
Monitor Kruse Way • Both GPI and Clackamas County will provide Lake Oswego the most
Occupancies, Issues current local and regional CoStar data on all development sectors.
and Opportunities by Gathering this information twice annually allows asy reporting on the big
Business Hub economic picture. Work with Kruse Way property owners and property
managers to maintain an up-to-date list of vacancies.
• Every two months6 8 weeks, conduct a windshield survey of all retail
centersthe Kruse Way corridor for vacancies/changes that present
opportunities to influence the business mix.
Kruse Way Lead • Create and implement a plan for when leads for the Kruse Way Corridor
Implementation Plan arise.Time is of the essence for many real estate deals, whether leasing or
buying. Ensure a system is in place and known by all partners early on.
• Reach out to other jurisdictions that conduct business recruitment for
examples on shared lead generation tracking to aid the City and Chamber
to always have the same information available.
Kruse Way Business • Cultivate a third-party referral network to identify business prospects for
Lead Cultivation Kruse Way.
• Think about partnerships outside of city limits. For example, work with the
City of Tigard on potential partnerships of new industrial users going into
the Tigard Triangle that may want a corporate headquarters in the Kruse
Way corridor.
Partner and • Maintain regular contact with key influencers in tenanting business
Collaborate with ED districts (office/retail brokers, property/management companies). Help
influence the commercial business mix and business locations to optimize
retail clustering in shopping districts/centers by connecting regularly with
brokers about prime existing or anticipated vacancies.
• Build relationships with key shopping or office center managers, including
those out of town to augment the business attraction process and
promote City services.
• Be r tidy to be act on any office tenant and significant retail recruitment
t ams no matter where the leads come from.
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Maintain a List of • Actively anticipate/track key retail r ady vacancies within the Kruse Way
Available Kruse Way corridor to match space and location available with the best business fit.
Properties and Land {sec Retail report draft target business list) continuing to build out the
on City Website Downtown, Lake Grove and shopping center retail hubs.
• See Initiative 1 re: creating an Economic Development webpage_
North Anchor Project • Continue to prioritize this investment providing timely and steady support
to Urban Development Partners and other stakeholders toward the
successful construction and tenanting of this visionary mixed-use project.
Marketplace • Stay open to market changes and explore what might be a fit for Lake
Innovation and Oswego.The consumer and business markets are ever evolving and
Education innovating.Today's customers are driven by experiences, connections,
entertainment and all things new and different.As one LO retailer
commented, "We need to stay relevant to survive."
• Get out of town—if not in person, then via visual presentations—to stay
on top of the many unique and successful retail/dining/shared space
concepts emerging in suburban centers and elsewhere around Portland.
Venues like food cart pods/food halls, shared kitchens, permanent artisan
markets and new approaches to 'cooperative' entrepreneur spaces are
helping commercial districts broaden and attract new (younger)
customers.
• Share insights and learning with staff, Council, LO Chamber's 3 business
committees and connect to any development opportunities.
Entrepreneur and • Connect with ED professional network to identify economic development
Home based Business best practices for supporting and encouraging both start up entrepreneurs
Support and home based businesses.
• S÷rvey i ake Oswego'.800 home b- ed b 4sinesses+o identify r eds and
interests in brick and mortar space.
Action Items(with additional staffing):
Business Survey • In year 2 survey home-based businesses to assess interest and readiness to
transition into brick-and-mortar spaces
Business Leads • Cultivate a third-party referral network to identify business prospects and
site opportunities in Downtown, Lake Grove and other locations.
• Track leads from new, start-ups, and existing businesses seeking retail or
office space in Lake Oswego.
• Focus business development and lead-tracking at the City in collaboration
with the Chamber. Meet regularly to focus priorities.
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Partner and • Maintain regular contact with key influencers in tenanting business districts
Collaborate with (office/retail brokers, property/management companies). Help influence
Economic the commercial business mix and business locations to optimize retail
Development clustering in shopping districts/centers by connecting regularly with
Network brokers about prime existing or anticipated vacancies.
• Build relationships with key shopping or office center managers, including
those out of town to augment the business attraction process and promote
City services.
Monitor Occupancies, • Both GPI and Clackamas County will provide Lake Oswego the most current
Issues and local and regional CoStar data on all development sectors. Gathering this
Opportunities by information twice annually allows easy reporting on the big economic
Business Hub picture.
• Every 6-8 weeks, conduct a windshield survey of all retail centers for
vacancies/changes that present opportunities to influence the business
mix.
Maintain a List of • Actively anticipate/track key retail-ready vacancies to match space and
Available Properties location available with the best business fit(see Retail report-draft target
and Land on City business list)—continuing to build out the Downtown, Lake Grove and
Website shopping center retail hubs.
• See Initiative 1 re: creating an Economic Development webpage
Lead Responsibility: City
Partners and Collaborators: LO Chamber of Commerce, realtors, property owners and managers
Timeline:
Year 1: Build Kruse Way relationships, monitor occupancies, post available property list, and begin
recruitmentNorth Anchor project assistance, monitor occupancies and business district issues, available
property list
Years 2-3: North Anchor project, continue Kruse Way efforts, begin storefront retail efforts business I ad
development and system, key influencer network, marketplace education, entrepreneur support. All of
these actions may be jump started in Y ar 1 but likely not be fully implemented until following y ars.
Economic Performance Measures (per target market):Outcomcs/Measures of Success
• Increased business inquiries
• Vacancy rates, space leased—if BRE efforts contributed to these results
• New business attraction,job growth
• Up to date properties/land available database; web traffic to this information
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• Anecdotal information about why businesses are attracted to Lake Oswego conveyed through
conversation, surveys, business/realtor testimonials
Initiative 43: Customer Attraction
Why Important?
The most inviting, well-maintained and smartly tenanted shopping districts need ongoing promotion to
shoppers to remind them of the innovative entrepreneurs and diversity of goods and services offered in
their own community. Lake Oswego's retail/service sector will benefit from increased marketing to local
shoppers, visitors and businesses through a unified promotion strategy. Businesses interviewed for the
retail analysis repeatedly expressed high interest in marketing and promotion to increase foot traffic to
their stores/locations.
Increasing the number of visitors and their length of stay in Lake Oswego directly supports retail, service
and hotel businesses. Business and meeting travelers make up a significant portion of lodging demand for
Lake Oswego's seven five hotels.The future boutique hotel slated for downtown at the North Anchor site
will attract a discerning, experience-seeking traveler who values unique local culture, authenticity, and
personalized service over standardized chain experiences—another motivation for coordinated business
promotions.
Fundamentally, promotional efforts are economic development in the sense of creating an environment
conducive to generating business within the district, but they also fulfill an important function in building
a sense of community and are a benefit for business attraction. Typically, business district promotions fall
into one of three categories:
1. Special events give people a reason to come to the business district and create positive energy and
activity.
2. Image building activities enhance the positive aspects of the district and minimize the negatives.
3. Retail or business-generating activities should generate business as a direct result of activities.
The City and Chamber have a deep list of events and activities in the first two buckets and in the near
term should focus promotion events on the 3rd category.
Action Items:
Business Survey • Include questions in the business survey to assess:
✓ Current customer base
V Marketing assistance needed
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Visitor Marketing • Retain a qualified consultant to create a marketing strategy that increases
customer traffic to Lake Oswego businesses by attracting both day trips
from regional visitors and tourism from overnight travelers. This effort will
include public outreach, an assessment of Lake Oswego's existing brand
and market perception, identification of the community's desired identity,
and what target customers businesses need. It should include a brand
strategy,followed by an implementable annual marketing plan.
• Review the 2010 "Lake Oswego Strategic Marketing Plan" and incorporate
relevant information or recommendations that remain applicable today.
• Identify the most effective strategies for incr asing customer visitor traffic
to business districts. Think: regional visitors, local/regional businesses,
area residents
• Based on the above, build an annual visitor marketing workplan,
JeveragingPartner with all possible 3rd party marketing
assistance/resources like Mt Hood Territory,Travel Oregon, meeting
planners, hotels, and short-term rentals. Rely on low cost resources like
social media as much as possible.
• Cross-market visitor events with the City, hotel, meeting locations and
retail businesses. Explore packages for special promotions.
• Package and promote Lake Oswego to regional/Oregon business
community as a meeting destination.The Foundry, Iron Light, Lakewood
Art Center and area hotels are all excellent locations with parking, capacity
and ample dining choices nearby.
• Consider implementing a strategy that has worked well in other
communities to support local small businesses and customer connections
by organizing a campaign of local small business testimonials/stories: "I
am Lake Oswego" or"I believe in Lake Oswego" sharing personal
commitment to the community's success. Rely on print and social media—
1 business a month. Samples available from Marketek upon request.
Promotion Calendar • Build out a business-generating promotion calendar of at least 3-6-4
events/annually; cross promote with City events whenever possible.
Examples include: a Taste of Lake Oswego/Restaurant Week campaign for
the slow winter season; Small Business Saturday shopping passports-
prizes; 1st Friday lunchtime and/or Happy Hour promotions targeting Kruse
office employees; Customer Appreciation 'end of season' sales; special
joint cross-promotions affiliated with special events (e.g., dining guide for
Antique Car Show) and holiday activities.
• The Chamber is best suited to lead promotions, create a workplan and
coordinate implementation with business co-chairs from each business
committee.
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• Evaluate the results of each promotion with a 3-question business follow-
up survey to continue to modify from year-to-year.
Shopper Survey • Electronic survey to identify top shopper needs and interests re:
merchandise, restaurants, services. Use info to revise target business list
and promote specific business opportunities
Business Visitation • Visit one-on-one with every hotel operator to understand customer base,
{see Initiative 2) needs and best marketing tactics
• Visit wither a representative sample of anchors of shopping districts
twice24 per a-year to gain insights into issues, opportunities,and identify
creative ways to increase customer traffic.
Parking • As businesses continue to share parking concerns, review and promote the
City's 2019 downtown parking study findings. Include steps for effective
parking management strategies.
.-Post the parking map (created through the parking study) in numerous
online locations and possibly on a mobile sign board for special events.
• Explore improved signage for public parking in both districts.
Wayfinding Signage • Explore the creation of wayfinding signage that points to key amenities
such as parking, recreation, and shopping nodes.
Action Items(with additional staffing):
Promotion Calendar • Build out 2 additional business-generating events/annually
[continued from
above)
Tourism-Related • Given the results of public outreach collected as part of the Marketing
Project Strategy, implement a key tourism-related project. Examples from other
communities include:
✓ Drawing recreational tourism by increasing access to the
Willamette River
✓ Creating a retail/restaurant passport
✓ Image building activities such as district banners, holiday
decorations, or sidewalk murals
✓ Encourage additional events that draw specific populations to
specific geographic areas of the city
Lead Responsibility: City Chamber of Commerce
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Partners and Collaborators:CityChamber of Commerce, Oregon Main Street, Mt. Hood Territory
Timeline:
Year 1: -Marketing strategy creation and kickoff, promotion calendar implementationcreation,visitor
arketing Main Scree* business visits (initiate}
Years 2-3: Parking promotion, Sshopper survey,business testimonialrexplore wayfinding signage
Economic Performance Measures:Outcomcs/Succcss Indicators:
• Marketing campaign reach
• Event/destination attraction attendance
• Event-related business sales (measured through post-event business surveys)
• Website/social media traffic
• Media coverage
• Customer satisfaction and interests (measured through surveys)
• Room nights/occupancy
• Meeting inquiries and bookings
• Anecdotal stories from businesses and/or hotels sharing that increase in business coincides with
specific campaigns and/or visitors had come because of the marketing efforts
Initiative 24: Economic Vitality Marketing
Why Important?
In a competitive business environment, it is important to convey Lake Oswego as a pro-business, investor:
friendly city. Conversations with economic development professionals reveal the City is known more as a
top quality bedroom community rather than as an economic center within the region with the exception
of the Kruse Way office corridor.To convey the City's interest in business and job growth it will be
important
to develop compelling messages. A few preliminary themes are:LL"Lake Oswego excels at continual
community improvement as a first-rate living and working environment"'and'"LO is a destination
suburban location with a highly educated workforce and superior quality of life." The community assets,
successful projects and redevelopment investments readily validate this theme. Another key message is
that when it comes to retail, restaurant and services,opportunity abounds in Lake Oswego, as
demonstrated by the retail market update. Further, to increase awareness of Lake Oswego as a top-
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quality business location with an excellent business climate', consistent information, contact, messaging
and visibility to target audiences are essential.
Action Items:
Business Survey • Include questions in the business survey to assess:
✓ Perception of Lake Oswego as being business-friendly
✓ Perceptions of barriers keeping new businesses from moving here
Elevate LO Image, • As a sub-strategy of the Marketing Strategy(see the Customer Attraction
Assets and Identity initiative), develop key messaging around Lake Oswego's key assets and
as Leading create a marketing planTranslatc LO's kcy assets into messages and
Suburban Business marketing platforms to attract and retain businesses to build the local
Location economy.
• Develop a core set of messages (3)to promote both online and in print
materials
• Promote LO's strong sense of place and business climate for economic
growth
Economic A simple webpage is important for communicating business support.-_Contents
Development may include the following:
Webpage • Up to date market data_ community_-snapshot—demographics, economic,
real estate trends
• Open your business in Lake Oswego-5 compelling reasons
• Who to contact for what at the City
• 'Available properties' link for Kruse Way properties-(key
commercial/industrial}; team with local commercial brokers
• Business resources/incentives (basic info with links)
• Costs:—Demonstrate_competitiveness—show comparative info on SDC
rates. Note: Review League of Oregon Cities just rcl -ascd results of a 2025
SDC survey.
Maintain/Enhance • City staff are key'ambassadors' for conveying an efficient, predictable,
LO's Positive business-friendly tone and regulatory process. Internally, define what a
Business Climate positive LO business climate looks like and what the City can influence.
Determine/refine simple standards for success, identify potential service
level improvements, establish specific goals and metrics to monitor progress.
Build on the existing goals, e.g.,target turnaround times for development
1 Business climate is defined by a mix of economic,political,and social factors like tax policies,regulations,labor costs,
infrastructure,and government attitudes,all influencing an area's attractiveness for investment and growth.It includes the ease,
cost,and support for starting,running,and expanding a business
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review,the permit process, etc. and identify what is working and what needs
improvement.
• Develop a brief(3 question) online survey for businesses to complete after
permitting or concluding other interactions with the City to gain insights to
local business climate and customer permitting and approvals process—the
most significant interaction residential and commercial investors have with
the City.
• Capture business testimonials as well as concerns to address. Make continual
improvements as possible.
Code Audit • Complete Development Code Audit to identify and address barriers to
housing production and economic development.
• Promote business-friendly changes and outcomes from this project.
Build ED Network, • Actively build and leverage relationships within the ED community:
Partnerships and Clackamas County, Greater Portland, Inc. (GPI), WorkSource Clackamas, Mt.
Synergies Hood Economic Alliance, Business Oregon, Oregon Economic Development
Association, etc.
Build a key contacts network for business marketing, business
assistance/attraction and to keep Lake Oswego 'top of mind' for business
development. This will include I adership from organizations above, the r al
estate community, public agencies, bankers, businesses and civic leaders.
Business Opinion • Business participation i challenging in an era of short attention
Research spans and top of mind messaging/sound bites. Instctad, look for ways to
generate useful information with very few (1 3) questions at a time. E.g., Will
your business expand, contract or stay the same in 2026? What is the top
challenge your business is facing this quarter?Organize through Chamber
network/business gatherings, via eblasts or other occasions where the City
has the attention of businesses.
• Brainstorm alternative ways/formats to gather insights and helpful
information and test out different approaches for a short Q&A.
Business One stop • With the pending hire of a City economic development manager, the
opportunity exists to develop a one stop (central point of contact)
concierge/information source for businesses seeking to expand or relocate
a customer driven approach to business development.
• Develop roles and responsibilities details to continue collaboration with the
LO Chamber of Commerce, which will remain the I ad organization for
business community advocacy and partnership.
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Lead Responsibility: City of Lake Oswego
Partners and Collaborators: LO Chamber of Commerce, Greater Portland Inc.
Timeline:
Year 1: Emphasize building the economic development infrastructure: webpage, partnership-key
influencers network, core messages and any internal improvements to convey a pro-business attitude. In
addition, complete code audit and identify steps to address business development barriers.
Years 2-3: Focus on Lake Oswego's key messages (and activities) to portray a positive, competitive
business environment, i.e., a business brand; identify tactics for integrating the messages into
City/Chamber communications and programs; conduct business opinion research.
Economic Performance Measures:
• Increase in inquiries surrounding specific campaigns
• Intangible results may include improved/positive perceptions of Lake Oswego as business and
investor friendly, conveyed through conversation, surveys, business testimonials
Initiative 5: Expand/Revise the Real Estate Inventory (longer term)
Why Important?
Marketing business opportunities and Lake Oswego as a premier business location goes hand in hand with
marketing business-ready properties. For significant economic expansion to occur in Lake Oswego the
supply of employment lands must be expanded over the long term. Vacant retail/service space in the Lake
Oswego/West Linn submarket is extremely tight at 1.9%; LO Lake Oswego retail is undersupplied relative
to local demand with over 1/3 of retail spending leaking out of Lake Oswego. The ability of Lake Oswego
to capture unmet demand depends on numerous factors but especially the availability of quality retail-
ready space. -Office vacancy in this submarket is 8% and is especially tight in properties meeting current
market needs—Small,flexible office space. Since 2020 average sizes have declined by 15-20%to 5,000 SF
or less. Within Lake Oswego no new commercial construction is in the pipeline except for the North
Anchor project, which is still 2+years out. Less than one acre of industrial land is available for
development, which while small might be suitable for small bay or flexible industrial purposes. See
Appendix B for complete details. While Lake Oswego's small land supply limits opportunity to expand the
local economy with new development, other options may be building conversions/repurposing, infill,
vertical development, rezoning, or in the long-term adding to the land base.
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Action Items:
Business Survey • In the second year of the survey, include questions aimed at the SW
Employment Center businesses to capture what is needed for the Needs
Analysis.
Kruse Way Visioning • As relationships solidify with Kruse Way property owners through
business recruitment efforts, the city should offer to facilitate a Kruse
Way visioning process, as a full partnership with those key stakeholders.
This process could include:
✓ Identifying opportunities for increasing density and expanding
uses and development in the corridor
✓ Identification of additional amenities that could benefit the
district
✓ Additional business recruitment activities that would benefit the
district
V The City's Planning Division would be the lead on this project, in
coordination with economic development.As some property
owners evaluate the long term viability of traditional suburban
office properties,facilitate and serve as a resource for new and
redevelopment opportunities.
• Accordingly, project scheduling and implementation will need to align
with the department work program and staffing capacity.
Southwest Employment • Prepare a needs analysis of the SW Employment Area (SWEA),
Area (SWEA) PlanNeeds identifying what the area needs for:
Analysis ✓ Business success
✓ Opportunities to capture more jobs and business
+ Update the 2015 Plan including project list and SW Overlay District.
Identify opportunities to capture more jobs and business within this
small employment lands ar o.
• Revisit transportation and other projects from 2015 SWEA Plan plan and
explore viable projects for the next 5 years.
• Engage with Biotronik/Microsystems, Lake Oswego's largest private
employer and the lead SWEA property owner to understand their critical
needs to stay and grow in place.
Foothills Planning • The 107-acre Foothills district provides a unique opportunity to expand
Lake Oswego's developable land base for residential, commercial and
mixed-use. Planning is underway for this community economic
development project and should remain a City priority for future
population and economic growth.
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Action Items(with additional staffing):
Available Properties • Review and assess vacant commercial/industrial parcels and identify the
most viable 'development-ready' sites.
• Reach out to property owners to understand intent and potential
marketability.
• Promote developable properties on City economic development
webpage.
Broker-Developer • Identify Opportunity sites--underutilized sites or buildings for
Meetings repurposing/redevelopment.
• Discuss interest, needs and potential for targeted new or
redevelopment.
Employment Lands • Longer term, expand employment lands increase supply of land and
properties to capture additional economic opportunities and add to job
base. Evaluate potential opportunity sites for development and
redevelopment starting with SW Employment Area and Kruse/Meadows.
Lead Responsibility: City
Partners and Collaborators: Property owners and developers
Timeline:
Year 1: Evaluate and market available land/properties, mcct with developers/brokers, support Foothill:,
concept planningParticipate in Foothills district planning
Years 2-3: Foothills game planKruse Way visioning process, SW Employment Area Needs analysis,
evaluate and market available land/properties, employment land e;�a-n-s+e ase`^y sioni=, B
Avenue visioning
Economic Performance Measures:Outcomes:
• Identification of specific land development opportunities
• Development projects underway
• Clear understanding of'best bets'for expanding Lake Oswego's employment base
Initiative 6: Organizing for Success
Why Important?
The City of Lake Oswego recognizes the importance of an economically thriving community. With an
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uncertain economic outlook both regionally and nationally,the timing of this refreshed strategy could not
be better for moving the economic development initiatives forward. Successful business development
programs for small and large cities alike have the following key organizational elements in common:
• Clear goals, responsibilities, commitment and funding communicated through a common vision and
game plan.
• A clear system for ongoing market education,target marketing and business development activities.
Among the stakeholders involved are the City, Chamber, established businesses, residents, lenders,
entrepreneurs/businesses and key employers.
• The capacity to follow-through on work plans.The most creative business development efforts will
not succeed without continuous follow-through and systematic adjustment to the marketplace which
is never stagnant.
Action Items:
Roles& • Define functional roles and responsibilities and clear reporting structure for
Responsibilities Economic Development Strategy implementation starting with City staff
(Community Development/Planning, Economic/Capital Improvements,
Public Affairs, City Manager's office) as well ariand the Lake Oswego
Chamber of Commerce
• Meet monthly(City and Chamber)to discuss work plan progress and adjust
as needed
Workplan • Prepare a quarterly Economic Development workplan to bring timely focus
on priorities, monitor the workload and manage expectations.
Resource Plan • Create a budget for strategy implementation
Reporting • Produce quarterly dashboard of activity and results
• Prepare a simple annual report of Economic Development
accomplishments with BRE prominently featured
• Establish aims, priority projects/programs and desired results for the
following year
Main Street • Join the Oregon Main Street (OMS) program at the Connected Communities
level where organizing around a specific project or activity like promotions
is encouraged.This level is for communities who care about their historic
downtown and traditional neighborhood commercial districts and want to
learn and benefit from a wealth of tried and true best practices to help
them make a difference. OMS is a key resource and partner for downtown
and commercial business district success. More than 100 communities
across Oregon participate in this program and peer support is very active
and effective.
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Regional Economic • Participate in local, regional, and statewide economic development and
Development tourism related meetings/conferences/networking opportunities
Partners • Represent Lake Oswego's economic development needs with partners
• Learn from other local jurisdictions. The economic development/Main
Street/tourism communities love to share to ensure efficient use of staff
time across the sector.
Lead Responsibility: City
Partners and Collaborators: LO Chamber
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Appendix A — Economic Development Partners and Resources
Clackamas County Office of Economic Development works to attract new businesses and support existing
businesses in the county. Staff facilitate regular meetings of all economic development professionals
throughout the county, actively partners with local, regional and state organizations and offers incentives
particularly focused on traded-sector businesses. Incentives include Business Development Grant
Program for capital, capacity, or workforce expansion with grants up to$100,000.They also
support building/infrastructure projects, promote export initiatives, and have resources for various
business needs like recovery.
Greater Portland Inc. (GPI) is the region's only public-private partnership dedicated to destination business
marketing and economic development. GPI's focus is to attract, grow, and retain traded-sector businesses
for all skill levels, and provide advocacy for greater Portland's competitiveness in coordination with public
partners. Specific assistance to local governments includes research/data analysis, site selection
consultations, real estate/business location services, comparative analysis of location competitiveness,
connections to over 90 private sector partners representing the region's wide ranging economic base.
Oregon Economic Development Association (OEDA) supports nearly 200 economic development
professionals across the state through educational programs, advocacy and networking which give insight
into best practices to ensure healthy economic growth. OEDA serves local governments, development
organizations and business by focusing on professional training in order to provide the tools and resources
which enable forward thinking and successful outcomes.
Oregon Main Street(OMS) Network specializes in optimizing the assets of downtowns--the social,
economic and civic heart of a community. With over 100 member communities in Oregon, OMS provides
training and technical assistance to help with all phases of downtown revitalization efforts by focusing on
the specific vision of each community and addressing how to attract the people and financial resources to
achieve the outcomes desired. Members of the OMS Network have access to the Oregon Main Street
Revitalization Grant and connect to the resources of the National Main Street Center and the brain trust
of over 2,000 Main Street communities across the country.
Oregon Employment Department (OED) is a valuable resource for identifying potential employees who
are best qualified to fit employers' needs. OED also is the leading source of state and local employment
data by sector and more in-depth research on industry and employment trends. Regional staff conduct
trend analysis and are available for customized presentations.
Business Oregon is the state's economic development agency that manages over 80 different programs,
including grants, loans, and tax incentives,to support Oregon businesses and communities of any size.
Community support is organized by 12 regions and teams statewide.The Business Oregon
Commission oversees the agency's activities to ensure a coherent, integrated approach to economic
development and a continuous policy direction.
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Clackamas Worksource Partnership (CWP) is a "one-stop shop"for free training, education, and
employment services for Clackamas County businesses and residents on wide ranging workforce issues
and opportunities. The CWP actively uses various state and federal grants to fund job training, career
coaching, and support services.
Clackamas Small Business Development Center(SBDC) at Clackamas Community College is one of 19
regional centers affiliated with community colleges in Oregon.The business training and advising program
offers a range of educational opportunities to help small businesses succeed.These include specialized
training classes as well as free one-on-one businesses consultancies.The Clackamas SBDC will be an
excellent resource for business assistance needs that surface from a business retention program.
Mt. Hood Territory is the primary marketing and promotion organization for generating tourist activity in
Clackamas County. The organization focuses on increasing the number of new and repeat visitors to the
County and the amount of money visitors spend in the area, thus contributing to economic development
and local vitality. Staff members are excellent resources for developing a visitor industry strategy,
consulting on best ways to use and leverage visitor marketing resources and cross-promotional activities
with tourism assets across the county. Marketing grants are available to Clackamas communities as well.
Mt Hood Economic Alliance(MHEA) serves Clackamas, Hood River and Wasco Counties with gap
financing/loans for those businesses unable to secure (enough)financing through conventional banking
needs. The Alliance seeks out and invests in projects that create jobs and leverage additional investment,
with priority given to those business development projects that create or retain better than average wage
jobs in the light manufacturing, recreation equipment,technology, tourism and agriculture industries
Oregon Manufacturing Extension Partnership (OMEP) helps Oregon manufacturing businesses (large and
small) improve operations, strengthen teams, and achieve sustainable growth. Expert industry advisors
offer assistance with workforce development, adopting new technology, and business strategies grounded
in practical, hands-on implementation.
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Appendix B — Lake Oswego / West Linn Industrial Snapshot
Marketek prepared an overview of the industrial market in Lake Oswego and the Lake Oswego/West Linn
submarket in November 2025 based upon CoStar reports, Metro vacant lands database and field work.
Key Findings
- Lake Oswego contains a small, built-out industrial base totaling approximately 1.35 million SF, with no
new deliveries and no projects under construction.
-Vacancy is extremely tight("'2.4 percent), with only about 30,000 SF currently being marketed for lease.
-The market is predominantly small-bay logistics and service-oriented space, with a modest flex
component.
-Within the LO/West Linn industrial submarket, Lake Oswego contains most industrial buildings and
square footage, with West Linn representing a significantly smaller share.
-Only 3.86 acres of industrial land remain vacant across four parcels, representing approximately 2.6
percent of the city's industrial land base.
- Limited developable land indicates that future industrial growth will rely on redevelopment, not new
greenfield sites.
-Available spaces are few and relatively small,generally under 10,000 SF.
-The absence of new construction suggests continued long-term supply constraints.
Lake Oswego Industrial Overview
Lake Oswego's industrial market is defined by constrained supply, minimal turnover, and stable long-term
occupancy.The city's industrial inventory totals approximately 1.35 million SF, consisting primarily of
small-bay warehouses, service-oriented industrial buildings, and flex space. No new industrial
development has occurred in more than a decade, and the city's limited industrial land base restricts
future expansion.
Vacancy remains exceptionally low, at around 2.4 percent, and only a small amount of rentable area is
being marketed. Industrial users within this submarket typically include construction trades, logistics
groups requiring close-in accessibility, and professional service firms that value proximity to Lake Oswego's
residential and commercial areas.
LO / West Linn Submarket Summary
The LO/West Linn industrial submarket demonstrates consistent stability, supported by low vacancy and
minimal new supply. Industrial rents have shown modest appreciation, reflecting solid tenant demand and
the scarcity of available space.
Based on mapped inventory, Lake Oswego accounts for most industrial buildings and square footage
within the submarket. Industrial properties are primarily concentrated along Pilkington Road,Jean Road,
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Willow Lane, McEwan Road, and Foothills Road. West Linn contains only a small number of industrial
buildings, contributing a minor share of total inventory.
Current Industrial Availabilities
Address City Building SF Asking Lease Notes
SF Available Rent Type
17425-17505 Lake 11,578 4,800 SF 18.002 Direct Small-bay warehouse
SW Pilkington Oswego SF with drive-ins
Rd
5755 Willow Ln Lake 13,909 4,882 SF 23.35 MG Sublease Flex or office space
—Suite F Oswego SF with warehouse
component
220 Foothills Lake k7,500 SF 1,200 SF Rent Sublease H.Service or industrial
Rd Oswego J _ _withheld jlspace
6710 SW Lake 64,493 8,750 SF 12.00 MG Sublease Warehouse with 22-
McEwan Rd— Oswego SF foot clear height and
Building 1 short-term availability
Construction Pipeline
There are no industrial projects under construction in Lake Oswego or West Linn. With less than one acre
of vacant industrial land remaining in LO, near term opportunities for new development are extremely
limited.
Vacant, Buildable Industrial Land in Lake Oswego
Recent GIS analysis using the updated 2024 Metro Vacant Lands model identifies only one industrial-
zoned parcel in Lake Oswego shown in yellow in the map on the following page.The site on Jean Road is
31,729 SF or 0.73 acres. Out of 147.04 acres of industrially zoned land citywide, only 0.5 percent remains
undeveloped.
2 MG=Modified Gross Lease
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Key Takeaways
- Lake Oswego's industrial submarket is tight, stable, and built-out.
-The LO/West Linn submarket is dominated by LO in terms of inventory and available space.
-Vacant industrial land is miniscule limiting future development capacity.
- No construction pipeline and constrained availability point to continued long-term supply limitations.
City of Lake Oswego Economic Development Strategy 2026-2029 -DRAFT 32
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Appendix C — Sample Business Retention Expansion Flyer
CANBY IS
OPEN FOR BUSINESS CAN5Ybuslr
Canby's 800 businesses and nearly 8,000 employees are the economic %/here NJ5111Z55 Grows"
engine of our community! We have dedicated staff ready to help and
advocate for existing companies as they grow and expand.We're here
to help you succeed.
LOCAL ROOM TO WORKFORCE
INCENTIVES GROW SUPPORT
Strategic Investment Zone Industrial Park Customized training&
program offers 15-yr property with 360 acres of affordable,shovel- staffing programs
tax abatement for ready land&buildings ready to at Clackamas Community
manufacturers investing>$25M occupy College;Clackamas Workforce
Rural Loan Programs Hwy 99 Commercial Partnership
(land,lease,build to suit)
Revitalized historic downtown with
retail&office space available
WE CAN HELP. ..
Cut the Red Tape!City staff works with businesses and developers to expedite the permitting
process and access incentives-we value your time and money.
Keep Costs Down!Canby's locally-owned and managed utilities offer competitive rates(30%below
surrounding areas!),responsive service and ample capacity.
Access every Business Resource available through our local,regional,statewide partners!
YOU'RE IN GOOD COMPANY
These companies are growing their business in Canby:
,zi
„_
Columbia Distributing Dragonberry Produce Canby Pioneer Industrial Park
"The benefits of a Canby location are many: 'We've chosen Canby to grow our business.Since High-quality industrial campus with shovel-
Access to labor,access to land,Portland metro locating in 2013 with the completion of the first ready land&buildings in a desirable
population moving south,affordable housing, LEED building for fresh produce distribution in
welcoming community,easy to work with Oregon,our number of employees has more than location with easy access to Hwy 99 and 1-5.
government."--Paul Meade,CFO doubled!" --Amy Nguyen,President
Do you have an opportunity to take your business to the next level of growth?
Are you facing a business challenge?Let us connect you to resources!
CONTACT JAMIE STICKEL, CANBY ECONOMIC DEVELOPMENT DIRECTOR
STICKELJ@CANBYOREGON.GOV 503.266.0701 WWW.CANBYBUSINESS.COM
City of Lake Oswego Economic Development Strategy 2026-2029 -DRAFT 33
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Appendix D — Interviews
Liz Hartman and Matt Evans, Lake Oswego Chamber
Amy Vandervliet, Oregon Employment Department
Nick Triska, Brett Marchant, Greater Portland Inc.
Chad Marting, Bank of Pacific
Steve Perkins, Laura Edmonds, Cindy Moore, Clackamas County Office of Economic Development
Leigh Mcilvane, DLCD
Michelle DeBuhr, Colette Young, OnPoint Community Credit Union
Scott Stoddard, Biotronik/Micro Systems Engineering
Raul Bonifacio,Yakima Products
Jim Austin, Casey Knopik, Mt Hood Territory
Eric Cress, Urban Development Partners (UDP)
Charlie DiGregorio, Norris-Stevens
Matt Lorenzen, City of Wilsonville
Erika Fitzgerald, City of Gresham
See the 2025 Retail and Office Market Updates for additional stakeholders who contributed to the findings
and strategy.
City of Lake Oswego Economic Development Strategy 2026-2029 -DRAFT 34