Why so many empty storefronts?

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North Lombard Street shines with sparkling businesses such as StormBreaker Brewing St. Johns, Two Rivers Bookstore & Weird Sisters Yarn, Chill N Fill, along with many restaurants and nightclubs.

But a closer look at N. Lombard shows nearly 30 vacant storefronts and empty properties from the former Baxter Auto Parts store in St. Johns to the shuttered Green Zebra grocery in Kenton. Such vacant properties are not mere eyesores, they hurt the ability of the St. Johns and Kenton neighborhood business districts to grow as community focal points with arrays of business amenities and services.

“Look at this, it’s disgusting,” said a frustrated James Armstrong, pointing to the dirty windows of a long-closed storefront in downtown St. Johns. “It probably has several code violations from neglect,” said Armstrong, who owns nearby Cathedral Eye Care on Lombard and is a St. Johns Boosters member. Active businesses draw more people to the entire downtown, but derelict property discourages people from coming downtown at all, he said.  Vacant storefronts have vexed Lombard Street for years, said Tanya Hartnett, who directs Venture Portland/St. Johns, a non-profit working on town center issues.

Vacant storefront in St. Johns
Long vacant storefront in St. Johns

Multiple explanations exist for the high vacancy rates. “Whenever I get a phone call from potential buyers looking for space, including mom-and-pops, they say ‘anywhere but Portland and Multnomah County,’” said Brett Bayne, a commercial realtor for Macadam Forbes, which has several Lombard properties listed.  Prospects that he used to get are now going to Washington and Clackamas counties because of lower taxes and the homelessness crisis hurting businesses in Portland, Bayne said.

Others cite how Portland’s previous City Charter election system had elected commissioners on a citywide basis, which motivated them to focus on citywide concerns and less on individual areas such as North Portland. The new City Charter change creating the new Council District 2 specifically for North/NE Portland could be a game-changer.  The three new North/NE Portland Councilors will have incentive to delve into Lombard-area issues.

Sara King served as the city’s Prosper Portland manager for the city’s former Interstate Corridor Urban Renewal Area that covered neighborhoods bordering Interstate Avenue and included downtown St. Johns. On a recent walking tour of St. Johns, King offered why St. Johns hasn’t become a destination magnet like the Alberta, Mississippi and Hawthorne districts.“Population density is the key,” she explained, “and St. Johns doesn’t have it yet.”  But she also sees potential. The existing zoning would allow construction of more low-rise condo and apartment structures whose residents would increase the customer base and add streetscape activity. “St. Johns’ building stock is good, visually attractive, varied, historic and with tree-lined sidewalks,” King said. “There’s a sense of place here, that’s not sterile like the glass and steel of the new North Williams & Vancouver Avenue business district,” she said.

The big challenge, she added, is persuading owners of vacant properties of that opportunity. 

Vacant storefront for lease in St. Johns town center
Vacant storefront consistently for lease
in St. Johns town center

John Southgate, who preceded King at Prospect Portland, agrees. “You can have great zoning, architecture, walkable sidewalks and strong community support, but if the people who control the property aren’t on board, then good luck,” he warned.  

Estimates are that 75%-plus of downtown St. Johns commercial properties are owned by people outside of North Portland. Understanding their interests and motives is crucial, Southgate said. “If the owner has already paid off the purchase of their building, and they’re making money with cheap rent, they may think ‘why spend money to spruce up my building when I might not get higher rents, but my property value will go up and I’ll pay more property taxes,’” Southgate explained.

To overcome those obstacles in filling vacant storefronts, Hartnett, King, Southgate and others see possible strategies including:

Work with the City and Multnomah County to manage better those homeless individuals who routinely break business windows, vandalizing property, and whose presence discourages visitors to downtown St. Johns and business owners from re-investing in their properties.

Increase enforcement of suspected building code violations but keep expectations low. Property owners often appeal and legally stall alleged violations for years, Southgate said.  

Lobby state and city officials to fund a multi-year St. Johns Main Street program, said Armstrong, who formerly chaired the Alberta Street Main Street project and is also a Portland City Council candidate.  Southgate added, “A Main Street program can really kick-start things, but it can’t be just volunteers; you’ve got to hire a full-time staff.”

Push for the new Mayor and City Council taking office in January 2025 to direct the city’s Prosper Portland development agency to strengthen funding for contractors, and for Venture Portland/St. Johns and the St. Johns Center for Opportunity to broaden their pools of eligible businesses to help. 

Ask the City Council to carefully explore a vacancy tax on long-unused business properties, to encourage owners either to improve their property or sell to someone who would. Yet a vacancy tax would get intense pushback, Bayne said. “Taxes are why a lot of businesses are leaving Portland,” he said.