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FALL 2011 PSU MARKET STUDY

A Rate Comparison of PSU Housing, Parking & Hotel and the Surrounding Market

Planning, Sustainability & Real Estate

March 2012

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FALL 2011 PSU MARKET STUDYThe PSU Market Study is conducted on an annual basis to as-sess the market position of PSU’s auxiliary services (housing, parking, and hotel) relative to those available on the private market. The primary component of the market study is a comparison of PSU and market rates.

FOR MORE INFORMATION:Contact Dan Zalkow at (503) 725-5466.

PROJECT TEAMMichael Ahillen, Assistant Planner, Planning, Sustainability & Real Estate (Lead)Dan Zalkow, AICP, Associate Director & Planner, Planning, Sustainability & Real EstateRani Boyle, AICP, Associate Campus Planner, Planning, Sustainability & Real Estate

ADDITIONAL ASSISTANCE PROVIDED BY:Amber Cagle, Manager of Hospitality Revenue & Sales, Auxiliary ServicesKyle Helland, Housing Assignments Coordinator, Auxiliary ServicesJeff Sevilla, Kiosk Attendant Supervisor, Transportation & Parking ServicesSarah Renkens, Manager, Transportation & Parking ServicesJana Hain, Assistant Director for Administrative Operations and Outreach, University Housing OfficeEmily Lieb, Associate Campus Planner, Planning, Sustainability & Real Estate

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TABLE OF CONTENTSEXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . 4-5

HOUSING . . . . . . . . . . . . . . . . . . . . . . . . . . . 6-17 Methodology . . . . . . . . . . . . . . . . . . . 6-10

Findings . . . . . . . . . . . . . . . . . . . . . . 11-17

PARKING . . . . . . . . . . . . . . . . . . . . . . . . . . 18-21

Methodology . . . . . . . . . . . . . . . . . . 18-20

Findings . . . . . . . . . . . . . . . . . . . . . . . . 21

HOTEL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22-24

Methodology . . . . . . . . . . . . . . . . . . . . 22

Findings . . . . .. . . . . . . . . . . . . . . . . 23-24

APPENDIX . . . . . . . . . . . . . . . . . . . . . . . . . . 25-28

TABLES & FIGURESHousing Table 1: Unit Types Not Included in Comparison [p. 6] Table 2: Utility Adjustments for the 2011 Survey [p. 7] Table 3: Considerations Not Included in Rate Comparison [p. 8] Table 4: Locations, Counts, and Unit Types of PSU Housing [p. 9] Table 5: Locations, Counts, and Unit types of Privately-Owned Rental Housing [p. 9] Figure 6: Map of PSU, 0.5-Mile, and CHNW Housing Buildings [p. 10] Figure 7: Average Rents for Studios [p. 11] Figure 8: Average Rents for One Bedroom Units [p. 11] Figure 9: Average Rents for Two Bedroom Units [p. 11] Figure 10: Average Size for Studios [p. 12] Figure 11: Average Size for One Bedroom Units [p. 12] Figure 12: Average Size for Two Bedroom Units [p. 12] Figure 13: Average Rent/sf of Studios [p. 13] Figure 14: Average Rent/sf of One Bedroom Units [p. 13] Figure 15: Average Rent/sf of Two Bedroom Units [p. 13] Figure 16: Average Rents for Studios, Including Contract Options [p. 14] Figure 17: Average Rents for One Bedroom Units, Including Contract Options [p. 14] Figure 18: Average Rents for Two Bedroom Units, Including Contract Options [p. 14] Figure 19: Share of Market Housing that Uses Promotional Deals [p. 15] Figure 20: Average Rent Change Over Time, 2010-2011 [p. 15] Table 21: Results of Market Survey Rental Housing within 0.5-Miles of SMSU [p. 16]Parking Table 22: Capacity and Rates of PSU Parking and Privately Owned Parking [p. 19] Figure 23: Map of Off-Street Parking Facilities within Three Blocks of University District [p. 20] Table 24: Hourly Parking, 2010-2011 [p. 21] Table 25: Daily Parking, 2010-2011 [p. 21] Table 26: Monthly Parking, 2010-2011 [p. 21]Hotel Table 27: Smith Travel Research Competitive Set #1 [p. 22] Table 28: Smith Travel Research Competitive Set #2 [p. 22] Figure 29: Average Daily Rate (ADR) for Fiscal Year 2011 [p. 23] Figure 30: ADR for September 2011 [p. 23] Table 31: Overnight Parking [p. 24] Table 32: Event Capacity [p. 24]Appendix Table 33: Rental Housing Units in 0.5-Mile Market Not Surveyed [p. 25] Table 34: Average Studio Rent Change Over Time, 2010-2011 [p. 26] Table 35: Average One Bedroom Unit Rent Change Over Time, 2010-2011 [p. 27] Table 36: Average Two Bedroom Unit Rent Change Over Time, 2010-2011 [p. 28]

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Executive SummaryThe 2011 Market Study includes data on market rental housing, parking, and hotels from Fall 2011. Analysis was performed in Winter 2011-2012. The housing and parking analysis has been carried out annually since 2007, and the hotel study was added in Fall 2010. The purpose of the market study is to communicate to the administration the competitive market PSU’s auxiliary services operate within. Moreover, the market study helps the auxiliary services in their rate-setting and mar-keting processes. This market study includes a more complete inventory of downtown parking and rental housing than in previous years.

HousingPSU studios, one-bedroom units, and two-bedroom units were compared with equivalent units in the private market. Phone surveys were conducted for all privately-owned apartments in the half-mile radius of Smith Memorial Student Union and then compared with the PSU units. Only apartments that a typical PSU student could rent were considered, so no income-restricted, subsidized, or units reserved for the elderly were included. Seven apartment buildings owned and managed by Col-lege Housing Northwest (CHNW), a non-profit housing corporation that provides housing to students, are a subset of the 0.5-Mile Market. CHNW apartments are included in the 0.5-Mile Market. Portland Downtown averages come from the Norris & Stevens’ Spring 2011 Rent Survey Data. The number of units included in their survey is unknown. Average rents include a utilities adjustment.

• PSU STUDIOS (by the unit) rents are 7% higher than CHNW, 18% lower than 0.5-Mile Market Studios, 16% lower than Post-1995 Downtown stu-dios, and 3% higher than Pre-1995 Downtown. Increasing by 4.4% from 2010, the average PSU studio rent increase has been greater than another market segment.

• PSU ONE-BEDROOM (by the unit) rents are 12% higher than CHNW, 22% lower than 0.5-Mile Market, 28% lower than Post-1995 Downtown, and 2% higher than Pre-1995 Downtown. PSU one-bedroom rents have in-creased 4.3%, a higher rate of change than CHNW and both downtown seg-ments, but lower than the 0.5-Mile Market.

• PSU TWO-BEDROOM (by the unit) rents are 8% higher than CHNW, 4% lower than 0.5-Mile Market, 1% lower than Post-1995 Downtown, and 2% lower than Pre-1995 Portland Downtown. PSU two-bedroom rents have increased 4.4%. With the exception of post-1995 Downtown, all other market segments have increased.

Average Rent of PSU, CHNW, 0.5-Mile and Downtown (Pre- and Post-1995)

Percent Change in Average Rent for PSU, CHNW, 0.5-Mile and Downtown (Pre- and Post-1995) Units

For the comparison of rent over time, only units that were included in both the 2010 and 2011 sample were included.

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ParkingPortland State University hourly, daily, and monthly parking rates at off-street facilities were compared with rates at non-PSU owned facilities. Average rates by the lot and by the space were calculated for PSU facilities and all non-PSU facilities in the one-block and three-block radii of campus. This year, PSU average parking rates were lower across all rates and categories.• The average (by LOT) cost of HOURLY parking at PSU was 28% lower than the 1-Block Market and

29% lower than the 3-Block Market. PSU’s average by lot price is a 9% increase from last year’s average. No market lots raised hourly prices from their Fall 2010 rates.

• The average (by LOT) cost of DAILY parking at PSU was 2% lower than the 1-Block Market and 4% lower than the 3-Block Market. Four PSU lots increased their hourly parking by a dollar since Fall 2010. PSU rates increased by 4% on average, while 1-Block Market and 3-Block Market increased at rates of 9% and 3%, respectively.

• The average (by LOT) cost of MONTHLY parking for PSU tenants was 10% lower than the 1-Block Market and 14% lower than the 3-Block Market. PSU employees pay a rate that is 25% lower than PSU tenants, 32% lower than the 1-Block Market, and 35% lower than the 3-Block Market. PSU parking for both tenants and employees has increased at 5%. The 1- and 3-Block Markets have increased by 3% and 2%, respectively.

HotelData from Smith Travel Research (STR), an external hospitality market data service, were used for market analysis of University Place Hotel (UPL). STR collects average daily rates (ADR) and compares UPL with six market segments: two competitive sets, downtown hotels, upscale hotels, independent hotels, and hotels throughout Portland. Fiscal Year 2011 ran from October 1, 2010 through September 30, 2011.

• UPL’s ADR was lower than the ADR for hotels in every other market segment examined. It is 20% lower than the Portland average and 39% lower than the Downtown average.

• UPL’s overnight parking rate is $14 lower than the Downtown average. UPL charges $12 per night compared with the average of $26 for the 11 Down-town hotels in the competitive sets.

• UPL did not change its parking rate from last year. Four of the 11 Downtown hotels in the competitive sets changed their parking rates. Overall there was a 7% increase in parking rates, or a $1.50 rise, on average.

Average Daily Rates (ADR) for guest rooms at University Place and Other Segments of the Portland Hospitality Market (FY 2011)

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Housing

Methodology

PSU surveyed 26 privately-owned apartment buildings located within a half mile of Smith Memorial Student Union (SMSU) in October 2011. Compatible units were compared with PSU studios, one-bedroom units, and two-bedroom units. Fewer than half of PSU units have market equivalents. Only PSU studios, one-bedroom units, and two-bedroom units with dedicated kitchens and bathrooms were included. No units associated with the First Year Experience or Liv-ing Learning Community programs were included. Analysis of size, rent, and rent per square foot was conducted. Additional resources include the 2011 Nor-ris & Stevens Spring Rent Survey. The PSU Market Study does not address the quality, occupancy, operating costs, or revenue associated with these offerings.

PSU studios, one bedroom units, and two bedroom units were compared with similar apartments in the market. The one and two bedrooms at PSU have one bathroom, so only apartments with this configuration were included. There are three mar-ket segments included in the analysis:

• 0.5-Mile Market: Privately-owned apart-ments in the 0.5-mile radius of SMSU were included. Apartments that fall within this radius that were not included are those that have income restrictions, do not allow students, or did not respond to phone calls. College Housing Northwest (CHNW) apartments were included.

• College Housing Northwest (CHNW): Seven apartments in the half-mile surrounding SMSU are owned and managed by CHNW, a non-

profit that provides affordable rents and flexible leases for students.

• All Downtown: Norris & Stevens conducts a survey every quarter. The report divides units in apartments older than 1995 from new units. They do not disclose the apartments surveyed or the number of units.

0.5-Mile Market (n=2,271)The list of apartments in the 0.5-Mile Market was determined by first using RLIS* GIS data to identify multi-family taxlots in the half mile radius of SMSU. A housing inventory was conducted on foot and through phone calls to eliminate units that are too small, condominiums, had unit restrictions, or were subsidized. Small units include houses and duplexes, which are not considered comparable to the denser apartment offerings of PSU. Con-

dominiums are not included because contacting the owners of individual units would be too time-intensive. Unit restrictions, such as senior housing or housing for the homeless, were not considered because they would not house the typical PSU student. Subsidized housing is unavailable to most full time students.

All 26 remaining apartment buildings that re-sponded to the survey were included in the size and rent analysis. A total of 2,910 units are included in these apartment buildings: 846 studios, 1,199 one-bedrooms (1x1), and 226 two-bedrooms (2x1). Although data were collected on three bedrooms and units with more than one bathroom, these were not included in the assess-ment because PSU has no comparable units.

Table 1: Unit Types Not Included in Comparison

*Collected by Metro’s Data Resource Center, the Regional Land Information System (RLIS) is database with geographic-based infrastructure data from throughout the region. The data are collected through community partnerships among the cities and counties that make up Portland Metro.

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Building managers and administrative assistants were contacted by phone in October 2011 to gather data regarding:

• Year of construction• Number of units• Unit types and typical sizes• Current marketed rental rates for new tenants• Utilities include in the cost of rent• Parking availability • Lease options and special promotions

A rental rate comparison (Figure 20, p. 15) shows the rental rate changes from 2010 to 2011. Only units included in both years were used for this comparison, which is why the average rent rates in Tables 4 and 5 differ from those in the change-over-time analysis.

College Housing Northwest (n=486)CHNW, a non-profit housing corporation that markets to PSU students, manages seven apart-ment buildings in the 0.5-Mile Market. These units are included in the 0.5-Mile Market. At least one resident of the apartment must be a student tak-ing eight credits or more. CHNW allows students flexible lease options, including month-to-month contracts. The leasing agents at CHNW answered the same questions as the other apartments in the 0.5-Mile Market.

All Downtown (n=unknown)The Norris & Stevens 2010 Spring Rent Survey provides additional market data on downtown. The survey divides the downtown market into two categories: pre-1995 housing and newer options. Because the number of units is unknown, no aver-age of downtown (both pre- and post-1995) units is available.

Tables 4 and 5 (p. 8) and Figure 6 (p. 9) show the names, locations, and unit types for PSU and market units in the 0.5-Mile Market and CHNW segments.

Adjustments, Services & AmenitiesThe rents for units include a utilities adjustment (Table 2). Many units, such as PSU, include all utili-ties in their rent. Others do not include any. A utility adjustment, based on rough estimates used in the 2010 Market Study, has been added to individual apartments where appropriate. Because Norris & Stevens does not disclose their methodology, no adjustment for the downtown segments has been included. Had an adjustment been included, the downtown segments would have had higher aver-age rents.

A number of considerations that are not included in the rate comparison are shown in Table 3.

Table 2: Utility Adjustments for the 2011 Survey

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LimitationsThe differences between the properties and how they are managed creates certain limitations.

(1) Averagemarketrentsdonotreflectwhatis being charged to current tenants. The survey asked for the rents being offered to new tenets.

(2) No adjustments were made for the amenities offered at PSU and market units. Amenities, such as gyms, free parking, or apartment-wide broad-band, have value, but cannot be easily analyzed. It is worth noting that all PSU units include internet and phone, which no units in the 0.5-Mile Market included. Some PSU units also include cable, which is not the case for any 0.5-Mile apartments.

(3) No adjustments were made for promotional offers. A number of apartments offer a month or less of free rent with longer lease contracts. These were not adjusted in the rent analysis.

(4) The study does not adjust for Residence Life expenses, which are also embedded in the cost of PSU rent. Residence Life expenses account for approximately 8% of PSU rent.

(5) No adjustments were made for move-in costs. Almost every 0.5-Mile Market apartment requires a non-refundable move-in fee for a background check. PSU does not charge this fee.

(6) Many PSU units have furniture fees embed-ded in the rent. Although some units in the 0.5-Mile do provide furniture, this comes with additional fees. No adjustments to PSU’s rent were made.

Table 3: Considerations Not Included in Rate Comparison

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23 245 SW Li 4 242 107 40 393

Location Building Year Built Address Studio 1x1 2x1 2x2 3 Other Total Units1 Cambrian* 1925 1129 SW Columbia 23 11 342 Carmelita 1911 1232 SW Jefferson 15 10 253 The Clay* 1925 1110 SW Clay 3 34 1 384 Clifton House* 1962 2031 SW 10th 6 23 1 305 Cumberland 1910 1405 SW Park 14 5 1 206 Cyan 2009 1720 SW 4th 188 93 27 25 6 13 3527 Dori Court 1908 1126 SW 12th 58 588 Essex House Apartments† 1992 1330 SW 3rd Avenue 104 52 1569 Gallery Park Apartments† 1999 1436 SW Park 7 24 31

10 The Gentry 1911 909 SW 12th 30 30 6011 Goose Hollow Plaza* 1999 1604 SW Clay 25 94 11912 Goose Hollow Tower* 1972 1630 SW Clay 113 78 30 22113 Harrison Court† 1903 1834 SW 5th 6 6 3 1514 Harrison Tower Apartments† 1969 222 SW Harrison 126 42 16815 Imperial Arms 1917 1429 SW 14th 20 21 15 5616 Ladd Tower 2009 1300 SW Park 37 55 79 160 33117 The Ongford 1937 1417 SW 10th 53 4 5718 Palladian* 1925 614 SW Jackson 18 2 2019 Regency 1926 1410 SW Broadway 86 1 8720 Southpark Square 1987 1525 SW Park 20 80 7 63 2 14 18621 The Sovereign 1922 710 SW Madison 44 4422 Tiffany* 1908 1515 SW 11th 22 2 2423 Vill t L j F t iVillage at Lovejoy Fountain 1989198 245 SW Lincoln9 ncoln 4 242 107 40 39324 The Vue 1951 1717 SW Park 91 162 44 2 29925 Westfall 1910 1880 SW 5th 53 3 5626 West Park Place 1996 1415 SW Park 10 20 30

846 1199 226 402 10 227 2,910 *CHNW†New in 2011 Market Study

TotalLocation Building Year Built Add

Studio 1x1 Sleeper2x1ress Tota

Studiol s

UseStu

d in dy

Total1x1

Used in Study

Total2x1

UsedStud

in y

Total Sleepers

Total Rooms

Used in Study

A Blackstone 1931 1831 SW Park 14 0 20 19 6 6 13 53 25B Blumel 1986 1705 SW 11th 0 0 189 181 0 0 0 189 181C Broadway 2004 1948 SW Broadway 381 123 1 0 0 0 0 382 123D King Albert 1931 1809 SW 11th 64 63 0 0 0 0 0 64 63E Montgomery Court 1916 1802 SW 10th 0 0 1 0 0 0 144 145 0F Ondine 1968 1912 SW 6th 284 76 1 0 0 0 0 285 76G Parkway 1932 1609 SW Park 10 10 24 23 7 7 13 54 40H Saint Helen 1928 1131 SW Montgomery 36 36 15 14 0 0 0 51 50I Stephen E. Epler 2003 1136 SW Montgomery 129 51 0 0 0 0 0 129 51J Stratford 1927 1609 SW 10th 22 21 9 8 0 0 0 31 29

940 380 260 245 13 13 170 1383 638

Table 4: Locations, Counts, and Unit Types of PSU Housing

Table 5: Locations, Counts, and Unit Types of Privately-Owned Rental Housing

**

** Other includes townhouses, penthouse suites, and other configurations.

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Figure 6: Map of PSU, 0.5-Mile, and CHNW Housing Buildings

0 .25Miles

Legend

PSU

CHNW

0.5-Mile N(excluding CHNW)

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FindingsRents for PSU units reflect how the units were priced in the fall of 2011, with rates divided by three to generate monthly rent. A minority of PSU units (Black-stone, Parkway, Stratford, St. Helens Court) are rented “by the unit” and rent is consistent regardless of the number of occupants. The majority of PSU units are rented “by the space” and rent is dependent on the number of occupants. Units have between one and three contracts. Figures 16, 17, and 18 on page 14 depict the differing prices across the different contract types. For purposes of brevity, only by unit rents, sizes, and rents per square foot are shown be-low.Average Rent

• PSU STUDIOS (by the unit) rents are 7% higher than CHNW, 18% lower than 0.5-Mile Market, 16% lower than Post-1995 Downtown, and 3% higher than Pre-1995 Downtown.

• PSU ONE-BEDROOM (by the unit) rents are 12% higher than CHNW, 22% lower than 0.5-Mile Market, 28% lower than Post-1995 Downtown, and 2% higher than Pre-1995 Downtown.

• PSU TWO-BEDROOM (by the unit) rents are 8% higher than CHNW, 4% lower than 0.5-Mile Market, 1% lower than Post-1995 Downtown, and 2% lower than Pre-1995 Portland Down-town.

Figure 7: Average Rents for Studios

Figure 8: Average Rents for One Bedroom Units Figure 9: Average Rents for Two Bedroom Units

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Average Size

• PSU STUDIOS (by the unit) are smaller on aver-age than all other market segments. They are 10% smaller than CHNW and 0.5-Mile Market, 15% smaller than Post-1995 Downtown, and 1% smaller than Pre-1995 Downtown.

• PSU ONE-BEDROOM (by the unit) units are also the smallest, on average. They are 4% smaller than CHNW, 12% smaller than 0.5-Mile Market, 21% smaller than Post-1995 Downtown, and 6% smaller than Pre-1995 Downtown.

• PSU TWO-BEDROOM (by the unit) units are 3% larger than CHNW, 7% larger than 0.5-Mile Mar-ket, 7% smaller than Post-1995 Downtown, and 2% larger than Pre-1995 Downtown.

Figure 10: Average Size of Studios

Figure 11: Average Size of One Bedroom Units Figure 12: Average Size of Two Bedroom Units

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Average rent/sf

• PSU STUDIO (by the unit) rents/sf are 20% higher than CHNW, 9% lower than 0.5-Mile Market, 1% lower than Post-1995 Downtown, and 3% higher than Pre-1995 Downtown

• PSU ONE-BEDROOM (by the unit) rents/sf are 16% higher than CHNW, 11% lower than 0.5-Mile Market, 8% lower than Post-1995 Downtown, and 4% higher than Pre-1995 Downtown.

• PSU TWO-BEDROOM (by the unit) rents/SF are 6% higher than CHNW, 10% lower than 0.5-Mile Market, 6% higher than Post-1995 Downtown, and 4% lower than Pre-1995 Downtown.

Figure 13: Average Rent/sf of Studios

Figure 14: Average Rent/sf of One Bedroom Units Figure 15: Average Rent/sf of Two Bedroom Units

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Figure 16: Average Rents for Studios, Including Contract Options

Figure 17: Average Rents for One Bedroom Units, Including Contract Options Figure 18: Average Rents for Two Bedroom Units, Including Contract Options

$546

$546

$573

$573

$453

$453

$453

Average Rents by the Space

The majority of PSU units have multiple contract options dependent on the number of occupants. These units, rented “by the space,” have different rates based on their configuration. The prices listed within the bars depict the charge per tenant with the configuration.

All PSU two-bedroom units are rented by the unit.

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Use of promotional deals in 0.5-Mile Market

Some of the 0.5-Mile Market apartments, including all surveyed CHNW apartments, provided pro-motional deals. CHNW offers credit to be used as payment for rent. The credit increases with longer leases. Other apartments in the 0.5-Mile Market offered free rent for the first two to five weeks or offered discounts on rent. Generally, promotional deals were less common in the 0.5-Mile Market apartments compared to 2010.

Change in Rent, 2010-2011

To compare the changes from 2010 to 2011, new averages were calculated for both years, using only those buildings that were included and par-ticipated in both the 2010 and 2011 surveys. CHNW units are included in the 0.5-Mile Market.

• PSU STUDIO (by the unit) rents have increased by 4.4%, a higher rate than any other market segments. Studio rents for CHNW and Post-1995 Downtown have increased by 3.1% and 1.7%, respectively. The 0.5-Mile and Pre-1995 Downtown studio rents have declined by 0.5% and 0.8%, respectively.

• PSU ONE BEDROOM (by the unit) rents have increased by 4.3%. This is a smaller increase than the 0.5-Mile Market, which increased by 7.6%. CHNW has increased their one bedroom rents by 1.5%. Both Downtown sectors have decreased: a decrease of 0.5% for Post-1995 and a decrease of 6.6% for Pre-1995.

• PSU TWO BEDROOM (by the unit) rents have increased 4.4%. CHNW two bedroom rents have increased 1.6%, 0.5-Mile Market rents by 0.9%, and Pre-1995 Downtown by 0.4%. Post-1995 Downtown has decreased 4.7%.

Figure 19: Share of Market Housing that Uses Promotional Deals

Table 20: Average Rent Change Over Time, 2010-2011

0

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Table 21: Results of Market Survey of Rental Housing within 0.5 Miles of Smith Memorial Student Union

CONFIDEN

TIAL

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CONFIDEN

TIAL

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Methodology

ParkingIn October 2011, PSU collected data on parking rates within the three-block perimeter of the University District. This area includes 14 surface parking lots and 10 garages at market lots. PSU has 6 surface lots and 9 garages. Included in this report are 3,825 PSU spaces and 3,993 market spaces. Rates for PSU spaces were compared with market rates in the 1- and 3-Block Markets.

All market parking data were provided by City Park and through walking inventories. Only off-street facilities were considered for this study, and no reserved spaces were included with the exception of spaces reserved for Zipcars. In previous years, the number of spaces was estimated by the data collector. The City Park data include a more accurate number of spaces in each building.

The 1- and 3-Block Market perimeters are designated by the dis-tance from the University District boundary, which is bound to the north by SW Market St., to the east by SW 4th Ave., and to the west and south by I-405. Parking beyond I-405, which is street parking, was not included.

For hourly and daily rates, three market segments were compared: PSU, 1-Block Market, and 3-Block Market. For monthly rates, rates for both tenants and employees at PSU lots were included. Employee per-mit rates are 75% lower than tenant rates, on average. Student and employee rates are the same price, but students are issued by term, not by month. PSU does not differentiate among students, employees, and tenants for hourly or daily parking.

Although the data supplied by City Park provide a more accurate number of spaces than previous years, they do not distinguish uses for the spaces. In previous years, the data collector estimated the uses for each of the spaces and a weight was used to determine the counts for by space averages. This year, no weight was given because of the uncertainty with those estimates.

Limitations(1) Changes in the makeup of the market sample and PSU lots accounts for some changes observed in the 2010-2011 change-over-time data. Many of the lots changed their uses in addition to their prices. There is some discrepancy between the two years as the inconsistent lots and spaces were not removed from either year.

(2) The lack of knowledge about how spaces are used makes the by SPACE averages less reliable. Because a weight was given to the by SPACE averages in 2010 but not 2011, the counts for 2011 are higher.

(3) For by SPACE averages, no distinction was made between hourly and daily spaces at PSU. Distinctions are made only between hourly/daily spaces and monthly spaces.

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Table 22: Capacity and Rates of PSU Parking and Privately Owned Parking within Three Blocks of PSU Campus

CONFIDEN

TIAL

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Figure 23: Map of Off-Street Parking Facilities within Three Blocks of the University District

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As with previous years, PSU parking options remain lower than either market segments. PSU’s rate of change for hourly parking is increasing while the other segments are decreasing. Daily and monthly parking rates do not show nearly as dramatic a gap, but PSU increased their rates in all three time brackets. Consistent with previous market studies, the one-block market segment offered lower rates than the three-block market.

Table 24: Hourly Parking, 2010-2011

The PSU average cost by lot of hourly parking is 28% lower than market parking in the one-block radius of campus. PSU hourly parking is 29% lower than mar-ket parking in the three-block radius of campus. The averages by lot and by space of PSU hourly parking grew in the past year. Market parking saw a decline in prices, on average. It should be noted that the only market parking lot in the three block radius that lowered rates in the past year was Auditorium Park, a relatively large garage of 1,080 spaces. The decline in hourly parking averages is also a result of one parking lot, which last year charged significantly more than other hourly parking lots, discontinued their hourly parking services.

Findings

Table 25: Daily Parking, 2010-2011

The PSU average cost by lot of daily parking is 2% lower than market parking in the one-block radius of campus and 3% lower than parking in the three-block radius of campus. The one-block market saw the greatest relative rise from last year in both averages by lot and by space. The average by space decline for the three-block market is a result of Auditorium Park’s substantial decrease in price.

Table 26. Monthly Parking, 2010-2011

The PSU Tenant average cost by lot of monthly park-ing is 10% lower than the one-block market and 14% lower than the three-block market. PSU average by lot prices rose slightly more rapidly than market prices, however PSU average by space prices rose less sharply than the market segments.

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Hotel

Methodology

Since the 2010, the PSU Market Study has included an assessment of room rates and hotel parking at University Place Hotel (UPL). Average Daily Rate (ADR) for six market segments is collected through Smith Travel Research (STR), an external hospitality market data service. Parking rates were collected by phone interviews in October 2011. UPL no longer subscribes to Hospitality Information Services, which provided the data on conferences and other events included in the PSU 2010 Market Study. Collected by phone interviews, event capacity data of a selection of hotels is included.

The STR report compares UPL across six market segments:

• Competitive Set 1 (see Table 27)• Competitive Set 2 (see Table 28)• Market (Portland, Ore.)• Portland Downtown• Upper Midscale Class• Independent Hotels

The hotels in Competitive Set 1 represent the upscale downtown market, whereas the hotels in Competitive Set 2 are more comparable to UPL in terms of size and amenities. UPL is included in the averages of each of the sets. Had UPL been excluded, the difference between UPL and the competitive sets would have been greater.

A limitation of using the STR report is it does not provide methodology or further details about the data. Information about individual hotels is kept confidential, and none of the hotels included in the Portland, Portland Downtown, Upper Mid-scale Class, or Independent Hotels are disclosed.

Thirteen percent of UPL’s guests were PSU-affiliated visitors who receive approximately a 20% discount on rooms. The ADR discussed in this

market study represents what UPL reported to STR. The rates provided by UPL suggest higher rates, but these rates do not take into account any additional discounts provided to visitors. A $74 weekend walk-in rate for PSU affiliates and a $99 weekend walk-in rate for non-affiliated visitors. This represents a weighted average of $96, which is $12 higher than what is reported in the STR report.

Table 27: Smith Travel Research Competitive Set #1

Table 28: Smith Travel Research Competitive Set #2

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FindingsUPL has 235 guest rooms that rented an average of $75 per night in Fiscal Year 2011 and $84 per night in September 2011. Both figures represent a lower rate than the rest of the market segments. The ADR for Competitive Set 1 during FY 2011 was $128 and $120 for Competitive Set 2. Figure 31 on p. 34 shows that UPL’s parking rate is lower than that of all other downtown hotels in the competitive sets.

Figure 29: Average Daily Rate (ADR) for Fiscal Year 2011

UPL’s ADR for Fiscal Year 2011, which ran from October 1, 2010 to September 30, 2011, is lower than all other market segments. The discounted rate given to PSU affiliates is one reason for the lower ADR. Thirteen percent of guests received the discount, and the average full rate is still lower than other market segments. Shown in Figure 29, Competitive Set 1 had an ADR of $128 and Competitive Set 2 had an ADR of $120, both significantly higher than UPL. The ADR for UPL is 41% lower than Competitive Set 1 and 38% lower than Competitive Set 2.

Figure 30: ADR for September 2011

The gap between UPL and the other market segments is smaller in the month of September, when UPL’s ADR is at $84. As shown in Figure 30, all market segments have a higher ADR in September than the rest of the fiscal year. Competitive Set 1 has an ADR of $133 and Competitive Set 2 has an ADR of $123.

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Table 31: Overnight Parking

The 11 downtown hotels included in the competitive sets charge for parking. A phone survey conducted in October 2011 showed that UPL’s overnight rate is 53% lower than the Downtown aver-age. Only four of the 11 Downtown hotels in the competitive sets changed their parking rates from last year. Overall there was a 7% increase in parking rates, or a $1.50 rise, on average.

Table 32: Event Capacity

UPL’s event capacity is 8,000 square feet, which is 63% lower than the average of downtown hotels. At the time of data collection, a restaurant was being constructed in the hotel.

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Appendix

Appendix A: Market Housing Not SurveyedTable 33: Rental Housing Units in 0.5-Mile Market Not Included

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Appendix B: Rent Change Over TimeTable 34: Average Studio Rent Change Over Time, 2010-2011

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Table 35: One Bedroom Unit Average Rent Change Over Time, 2010-2011

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Table 36: Two Bedroom Unit Average Rent Change Over Time, 2010-2011