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LYTICS PUTS AN END TO SCATTERSHOT MARKETING

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2 BUSINESS TRIBUNE Tuesday, October 28, 2014

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Tuesday, October 28, 2014 BUSINESS TRIBUNE 3

Imagine you’re a millennial who likes to Facebook in the afternoon, blow up Instagram from your stand-up paddle-

board and haven’t bought much outdoor gear lately.

Somewhere out there, a market-er is trying to get very close to you. Maybe Lytics can help.

Portland software company Lytics (as in analytics, as in count-ing people online) just had a com-ing out of sorts, raking in $7.2 mil-lion in venture capital last week

and launching its software on the open market.

The VC splash, the round of ex-ecutive hiring, and an imminent move to the DeSoto Building on the North Park Blocks, are typical, long-awaited rights of passage in the Portland tech scene.

So it’s time to explain what the company actually does.

Lytics makes tools that helps

fi rms take control of their market-ing strategy. They can use the software to keep alive and even strengthen relationships with cus-tomers. It is pitched at e-tailers and media companies, but could work in other areas such as con-sumer packaged goods. The Clymb, Portland’s online fl ash re-tailer specializing in outdoor ap-parel and adventures, and Condé Nast, the media behemoth, are both current, paying customers — in the beta testing sense. Lytics just went the Software-as-a- Ser-vice (SaaS) route, licensing the Lytics Marketing Activation Plat-form at around $1,500 a month.

Co-Founder and CEO James Mc-Dermott points out that marketing channels are getting siloed. For

instance, if a long-time customer has stopped opening email news-letters but is still sharing heavily in Facebook, a Facebook ad with a 20 percent off coupon may be the best way to reach him. Not anoth-er email.

“The tools have evolved inde-pendently: the email person sends the emails out, the web does the web, the mobile app person tracks the sign-ins...So the idea of the customer gets lost in all these channel packets. We say, take a step back, start to understand the customer, then let your marketing team come up with a brilliant campaign to reach them.”

He says the modern marketer is half scientist, half creative, and under a ton of pressure to deliver

better results. The days of the te-chies dumping a .csv fi le on the marketing team are numbered.

“With the changes in ways con-sumers engage with brands, the CMO will spend more on technolo-gy that the CIO by 2017. That’s driving incredible levels of innova-tion in marketing technology” says Kevin Bobowski, Lytics’s new head of Marketing. “This pace of innovation isn’t going to slow down. It will only accelerate, and marketing will continue to be-come more complicated.”

Bobowski adds that marketers have long been given reports, by their IT departments, of what their customers have been doing

Digital marketers will know who clicked what and when, and maybe why

CONTINUED / Page 4

COVER: James McDermott and Aaron Raddon are the co-founders of Lytics, a software company that helps fi rms take control of their marketing strategy. ABOVE: The staff at Lytics partake in a product development meeting.TRIBUNE PHOTO: JAIME VALDEZ

PORTLAND SOFTWARE CO. HOPES TO GIVE ONE-TO-ONE MARKETING THE PUSH IT NEEDS

AT RISK TO EARN

BY JOSEPH GALLIVAN


Business Tribune

PRESIDENTJ. Mark Garber

EDITOR AND ASSOCIATE PUBLISHERVance W. Tong

VICE PRESIDENTBrian Monihan

ADVERTISING DIRECTORChristine Moore

CIRCULATION MANAG ERKim Stephens

CREATIVE SERVICES MANAG ERCheryl DuVal

REPORTERJoseph Gallivan

DESIG NKeith Sheffi eld

PHOTOG RAPHERSJonathan House, Jaime Valdez

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online, but they’re not much use. What they really want is some-thing that predicts what might happen next.

He compares the predictive an-alytics of Lytics to Google Now. Google Now is an opt-in service that reads you email, scans your calendar, checks your sports teams, fl ight information etc., and makes suggestions, such as ‘Time to leave for the airport,’ or the ball game. But it is only useful because it makes one suggestion, rather than a bombardment.

Lytics claims to only use the data that marketers own or have the right to, the stuff that people have opted into. It does not scrape. Its smart-matching algo-rithm can compare your LinkedIn activity to your Facebook to your Instagram, and on and on, build-ing up a picture of online behav-ior that marketers can use to reach you.

It also integrates with third

parties such as FullContact (full-contact.com) and Axiom enter-prise performance management software (axiomepm.com).

“We make the API call,” says McDermott, meaning his software connects to the marketers’ data-bases. “The customer already has

a relationship with them. There’s no magic, it’s just time and rela-tionships.”

The company even has a de-lightful term, “at risk to churn.” That would be a person who has stopped buying stuff and might be thinking of deserting to another brand or seller.

Another attribute is “momen-tum,” rated from 0-100 compared to other customers. It shows his most recent engagement with the brand. A score of 11 is pretty low and a sign that he needs to be brought back into the fold.

Lytics tries to simplify. “I go in-to a marketer’s offi ce and look at their computer and they have 18 different tabs open,” says Bob-owski.

So, with Lytics software they see a dashboard with the sort of clean, simple interface that is es-sential in today’s busy world. The real time report shows, for exam-ple, ‘We have identifi ed 33 cus-tomers at risk to churn.’ It pairs this with a suggestion, such as to hit them with an email or an ad.

The creativity — the content — still has to be done by the market-er or ad fi rm. Lytics does not get into that.

McDermott tells how Relate IQ, in the sales world, had the idea of taking data and making a simple suggestion, such as ‘You sent an email to this prospect and he didn’t reply, so we recommend you follow-up in 10 days with this message.’

“They were acquired by Sales-force for $390 million because they had a new way of thinking about activating data. We asked, how can we surface insights and suggestions to help marketers be-come more effective?”

Of course, Lytics has to use Lytics to keep track of its own customers, otherwise it would be suspect in the dog-eat-dog food world of software development.

■ From page 2

TRIBUNE PHOTO: JAIME VALDEZ

The staff at Lytics work at their stations at their offi ce in Northwest Portland.

At risk to earnJames McDermott co-founded

the company in Portland in 2012. A Portland native and a lawyer by training, he used to be general counsel at analytics company Webtrends, then worked at start-up Storycode until it was acquired, starting Lytics on the side with Raddon. He taught entrepreneurism at Portland State University for six years, used to live in the Bay Area and is com-fortable around tech investors.

“We had no problem raising money, zero,” he boasts. The money will go mostly on people. By the end of 2015, the company expects to be at around 50 staff.

Being able to raise capital in Portland is getting easier. (The same day, Portland push notifi ca-tion fi rm Urban Airship, some of whose alums are now at Lytics, announced it has raised another $12.1 million, bringing its total to $58.7 million.) “Portland’s hap-pening and the Seattle VCs are starting to look here. Fifteen years ago this was a hardware town, now there are a lot of smart, energetic people working on soft-ware. It scales quickly, doesn’t require a lot of capital, it’s the infrastructure of our lives, and it’s green. It’s perfect for here because Portland is full of maver-icks, people trying to be indepen-dent and creative.”

COURTESY : LY TICS

Lytics hopes to help ease the diffi cult j ob that marketers face of keeping track of all their different channels of infomation as illustrated in this infographic.


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“I’m the test case for this soft-ware,” says Bobowski. “I want to know who’s the CMO and if they’re different from the email marketing person...So we have Lytics for Lytics.”

It’s not all Facebook shares and Vines. Business goes on in distinctly normal ways too. Lytics has to get the word out, which is why the company crafted a three-part press release detailing the $7.2 million round of funding, the general release of the SaaS prod-uct, and a case study of a real customer, The Clymb. (“In their first three months working with us they saved over half a million dollars,” claims McDermott.) There are plans to build the Lytics brand though industry trade shows, webinars and “thought leader pieces.” (McDer-mott again, although he freely admits the visionary is his co-founder and Chief Technical Offi-cer, Aaron Raddon.) There are more traditional methods: inter-views in this newspaper, The Or-egonian and the Wall Street Journal.

And then there is word-of-mouth recommendation: “Typi-cally B2B (business to business) marketers have 10 to 12 ways to acquire customers. Referrals have low numbers but the high-est conversion rate.” McDermott

adds that almost all their 20-plus customers have been referrals so far. Initially they targeted big brands and enterprises like Star-bucks and DirecTV. Now they al-so see an opportunity amongst savvy marketers who are hearing their customers say marketing is intrusive and inappropriate.

Bobowsky adds that technology is changing so quickly that mar-keters need help keeping up with all the new channels, and he is confi dent that Lytics will be able to tap into the APIs of the next several social media channels that haven’t yet been invented.

Salesforce.com has its Exact-Target, but oddly, Adobe, as in Photoshop and Creative Suite, is also huge in this space, with its Marketing Cloud.

“There’s a ton of innovation, and a lot is being sucked up by

Oracle, Google, IBM, as they try to get into the space. But our view is an alternate view. How do we help marketers adapt? With an open platform, and we inno-vate with different tools.”

Even in little old Portland, it pays to talk big. He dismisses as “a bunch of disconnected acquisi-tions” the marketing platform that Adobe has steadily been building.

“We’re taking on Salesforce,” says McDermott, with a grin. “We have this window for growth, in what could be a $10 billion marketplace. That’s what makes it fun, going after the big guys. We get to build something from the ground up and hopeful-ly topple them.”

Joseph Gallivan can be reached at: [email protected]

‘ Vanity Metrics’F rom the Lytics b log:

“Marketers today are generally segmenting in their email marketing sys-tems based on declarative data and vanity metrics (opens, clicks, etc). This form of email marketing, however, has yielded less than ideal results, as 52 percent of marketers say they’re in great need of improved email database segmentation. The alternative to basic email marketing segmentation is data-based predictive algorithms. Rather than segmenting based off of who opens an email and what gender they are, you can segment based off of algorithms that predict future behavior.”

Michael Brondello,

one of Lytics’ employees does his work from a stand-up desk with a b alance

b oard.TRIBUNE PHOTO:

JOSEPH G ALLIVAN


Ten months after its imple-mentation, advocates for Portland’s Protected Sick Time law say the local work-

force is better off now that people don’t have to choose between their health and a paycheck.

However, business groups com-plain the law’s one-size-fi ts-all design doesn’t work for some industries and the administrative work required to comply is excessive.

Last year, the City of Portland passed an ordinance, guaranteeing paid sick days for eligible workers employed at businesses with six or more employees. The law went into effect in January, but enforcement was stalled while businesses scram-bled to adapt.

Andrea Paluso, Executive Director of Family Forward Oregon — a non-profi t leading the statewide cam-paign for paid sick days — says she’s received tremendous amounts of pos-itive feedback since the law’s adop-tion.

“We’ve heard a lot of stories from a lot of folks who have made it through this year with sick kids. They’ve been able to stay home without losing their jobs.”

The Bureau of Labor and Indus-tries, contracted by the city to imple-ment the law, has received 72 com-plaints related to the ordinance so far. BOLI spokesperson Charlie Burr says his bureau has also received four civil rights complaints, three of which alleged retaliation from the employer when an employee tried to cash in on paid sick days, and anoth-er that alleges an employer refused to comply with the law. Two of these claims are currently under investiga-

tion, but the vast majority of com-plaints resulted in warning letters to businesses.

“The most common source of wage complaints involve either failure to post information about Portland’s new law and failure to provide sick time to eligible employees,” says Burr. “In an effort to make the new law work for employees and employ-ers, our agency instituted an easing in period to give businesses an oppor-tunity to address unintentional er-rors as they get up to speed on the law.”

Portland Business Alliance spokes-person Liza Dossick says her organi-zation also helped area businesses understand what’s expected. The alli-ance came out in opposition of the or-dinance, saying it would cause ad-verse effects to small businesses. Now, she says, they are seeing those effects come to fruition.

“With the com-panies that are on the threshold of six employees; they aren’t hiring more people be-cause it’s been re-ally burdensome to comply with the ordinance, even though they have policies that ex-ceed the required amount sick leave,” she says. “There’s a huge administrative component to it.”

Bill Perry, Vice

President of Government Affairs at Oregon Restaurant and Lodging As-sociation agrees the administrative requirements are excessive.

“I think when you look at a lot of the smaller operators, they’re proba-bly not complying with the law from the reporting standpoint,” he says. “The way Amanda Fritz wants it, I’ve

got to record ev-erything. Even if it’s capped out at 40 hours, I have to keep recording,” he says. “I’d be surprised if there were many inde-pendent operators that had that ca-pability. They re-quire you to keep track of hours that nobody is ev-er going to use.”

Another issue, Perry says, is that restaurant indus-try employees commonly trade shifts when they aren’t feeling well because other-

wise, even under the new law, they lose their tip income when they call in sick. So they trade shifts while their employer is recording accrued sick time on the books. “Generally,” he says, “they end up switching their vacation time into PTO.”

Perry says the ordinance incurs double labor costs to his industry as well. When a restaurant employee calls in sick, another employee has to work that shift, so essentially two people are paid to do the job of one. It’s not like in an offi ce where a desk is vacant for the day. “Your retail businesses get hit a lot harder than your professional services,” says Per-ry. “When you look at these low-mar-gin businesses, that’s a big problem. That’s why shift trading is so impor-tant, it basically helps the employer and the employee.”

Under the ordinance, shift trading for sick time is only allowed if done in the same or next pay period, which Perry says is also problematic be-cause many businesses are on week-ly pay periods. In order to trade one big-tip shift for another, employees end up trading outside of the allowed time period and could later point to their employer as a lawbreaker if

they become disgruntled. “It’s important we get these poli-

cies right,” says AFL-CIO spokesper-son Elana Guiney. “We need to make sure that people who oppose the law, that their concerns are addressed so we aren’t rolling back a law that helps workers,” she says. “It’s done a lot of good. A lot of workers in our city now have the ability to take time off without losing their jobs or tak-ing food off their tables.”

Paluso says Sen. Elizabeth Stein-er Hayward (D-Beaverton) and Rep. Jessica Vega Pederson (D-Portland) will introduce a statewide bill in 2015. Two paid sick leave bills intro-duced into Oregon legislature last year didn’t get past phase one, but with Portland now on board, Paluso is optimistic.

Perry, however, doesn’t think new legislation will pass unless some compromises are made.

“They can have a sound bite that everybody should deserves to get sick leave that sounds good to the public, but there are practical appli-cations. It doesn’t work that way,” he says. “It’s a one-size-fi ts-all law, and I think legislators see that,” he says.

SOME BUSINESSES ARE FINDING PORTLAND’S NEW ORDINANCE PROBLEMATICPAID SICK TIME LAW NEEDS W ORK

COURTESY : LISA F RACK, COMMUNICATIONS DIRECTOR OF F AMILY F ORW ARD

F amily F orward Ex ecutive Director Andrea Paluso speaks at a press conference outside Portland City Hall immediately following the passage of the Portland Protected Sick Time ordinance on March 1 3, 2 0 1 3. F amily F orward is leading the campaign to make paid sick time req uired across the state.

BY EMILY GREEN

“ The way Amanda F ritz wants it, I’ ve got to record everything. Even if it’ s capped out at 40 hours, I have to keep recording. I’ d b e surprised if there were many independent operators that had that capab ility. They req uire you to keep track of hours that nob ody is ever going to use.”— Bill Perry, Vice President of G overnment

Affairs at Oregon Restaurant and Lodging Association


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Serving beer is helping to save some bicycle repair businesses in Portland. COURTESY: NICK SQUARE

BY JENNIFER MEACHAM


Beer has cropped up for sale at bike repair shops in Idaho, North Carolina, New York, but Oregon is home to at least

six repair shops also serving up suds, including no less than three in Port-land.

“There’s a story to be told about the reasoning behind [repair shops add-ing beer],” said Eric Deady of Bike Commuter in southeast Portland. “In-dependent bike dealers here are on the decline. We’ve lost one-third of the independent shops in the past 10 years.”

So, for Deady, September marked not only the rollout of Bike Commut-er’s larger repair shop in Sellwood, but also the fi rst pours of 10 beers on tap. The new “cycle lounge” is “going great,” Deady said. “We wanted to di-versify — to give people another rea-son to come in, or to stay.” Now, he said, “one half of our customers grab a beer while they’re here.”

Portland is an ideal town for such a mash-up. There are cyclist pub crawls, bike-carriage brewpub tours and events such as the Handmade Bike & Beer Festival, held this year at south-east Portland’s cycle-themed Hop-works Urban Brewery.

Against that backdrop rose Velo Cult Bike Shop, a transplanted repair shop and handmade bike showroom in northeast Portland. Velo Cult (velo means bicycle in French) is housed in a former fi ve-and-dime in Portland’s Hollywood District. It opened a year and a half ago with 12 craft brews on

tap.“It’s defi nitely one of the cycling

hubs,” said Billy Sinkford, public rela-tions representative for Velo Cult. “The cycling centers of Portland, you’ll see them here — sipping a beer after work.”

In doing so, it landed in GQ Japan magazine earlier this year as a hall-mark of Portland’s micro-brew econo-my. Busloads of Japanese tourists pit

stop at Velo Cult, on their way to downtown via Sandy Boulevard from PDX Airport. It’s owned by Sky Boyer, who ran a shop under the Velo Cult name in San Diego before coming to Portland.

“He followed cycling trends, from track bikes to full fenders,” Sinkford said. “But Portland was where he wanted to be.”

Sky fi nanced the bike-shop-pub

concept by selling off half of his then self-reported “largest collection of vin-tage mountain bikes in the world,” Sinkford said. He set the shop apart by staying open every day until 10 p.m., aiming for 24-hour repairs and ... pour-ing beers from the taps.

“On top of being a mechanic, every-one who works here is a salesperson, a brand adviser, a bartender,” Sink-ford said.

These days, only about 40 percent of shop sales come from repairs. Thanks to evening live music and a thriving T-shirt printing business, pub sales — at anywhere from $1,000 to $5,000 on big event nights — are on track to out-pace the shop’s repair bills.

“If our numbers are good for ser-vice, they’re good for beer,” said Velo Cult General Manager Rust Lafl eur.

To top it off, Velo Cult also rents out one of two Portland-made cargo bikes complete with keg room and taps. Hopworks, the bike-themed brewpub in southeast Portland, has the other.

“We’re the only ones that have these bikes that I know about,” said Phil Ross, co-owner of the Metrofi ets brand beer bikes. Why a bike serving up beer?

“It’s a marriage made in heaven, honestly,” Ross said. “The mash-up between bikes and beer here in Port-land just makes sense. People like to drink beer; they like to bike. Maybe not at the same time (see sidebar), but after a ride it’s great to chill out and have a beer with your friends.”

Pedaling on the right side of the law

Portland’s Driving Under the Infl uence laws extend to cyclists. Sometimes called “pedaling under the infl uence” or “biking under the infl uence” convictions for DUIs while cycling is likely “quite low,” said Portland Police Bureau spokesperson Peter Simpson. But “there is no way to get this number without a full review of every DUI report, as the law is the same for bikes and cars.”

In Oregon, “the only thing that doesn’t apply to bike DUI’s is the ‘implied consent law’ — the penalty for failing to consent to a breath test,” said Portland attorney David Lesh. “You don’t receive a sus-pension of your driver’s license for failing to consent to a test.”

Lesh, who defends cyclists with DUIs, said 80 to 85 per-cent of his clients are charged between 11:30 p.m. and 3 a.m.

“The police just generally aren’t looking for people at 3 o’clock in the afternoon, or even 7 o’clock at night,” Lesh said. “Unless you’re driving really poorly or get into an accident, the chances are really low that you’ll get pulled over — because there are a hundred times more cars on the road.”

In addition to increased lia-bility in the event of an alco-hol-induced crash, these busi-nesses also have rules of their own to follow.

Shops can give alcohol away to customers but must apply for a Limited On-Premises Sales license from the Oregon Liquor Control Commission to sell it. The limited license allows for the sale of malt beverages (including beer), wine and hard cider — both on-site and in growlers. Food service is not a requirement of this license. However, according to OLCC guidelines, service businesses must make sure drinking is not “the predominant activity” when minors are around, or food and other requirements kick in.

Annual cost for the limited OLCC license? $200.

“I’m pretty sure we have some of the lowest liquor licensing in the country,” said OLCC Spokesperson Christie Scott.

Portland’ s b ike shops with b eer on tap

The Bike Commuter, 10 taps — 8524 SE 17th Ave., Portland, (503) 505-9200Velo Cult Bike Shop, 12 taps — 1969 NE 42nd Ave., Portland, (503) 922-2012Western Bikeworks, 2 taps — 1015 NW 17th Ave., Portland, (503) 342-9985Planned for 2015: Portland Bicycle Studio, 3 to 4 taps —

1435 NW Raleigh St., Portland, (503) 335-8356

Bike repair shops elsewhere in Oregon with b eer on the sideCrows Feet Commons, 16 taps — Bend, (541) 728-0066Dirty Fingers Bicycle Repair, 5 taps — Hood River, (541) 308-0420 Flywheel Bicycle Solutions, 6 to 8 taps - Talent, (541) 512-8891Good Bike Co. LLC, 2 to 4 taps — Prineville, (541) 903-0509

LEF T: Metrofi ets b uilt this Beer Bike for Hopworks Urb an Brewery. There are currently only two in the state and Velo Cult has the other. BELOW : On a good night, pub sales can outpace Velo Cult’ s repair shop b usiness.COURTESY : CURTIS MILLER


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By TY LER F RANCKEPamplin Media Group

Pacifi c Wearing Solutions, a new business at the intersection of High-way 99E and Highway 214, offers stan-dard services such as dry cleaning and shoe repair, but it specializes in services that aren’t so easily found elsewhere.

Simon Lee, co-owner of the property with his wife, is new to the shoe trade, being retired from a career as a handy man engineer and inventor. But he’s learning from one of the best, Harry Pyon, former proprietor of West Linn Shoe Repair with 30 years of experience in the trade.

“Mr. Pyon is known as one of the top-notch shoe repair men around,” Lee said of the man he calls his “mentor.”

One of Pyon’s, and now, Lee’s, special-ties is cowboy boot repairs and altera-tions.

With the help of some high-tech equipment and techniques, the shop al-so offers cleaning for sneakers and ten-nis shoes, which is rare for the area, ac-cording to Lee.

“I believe I might be the only one in

the state of Oregon,” he said. “That’s one of the reasons I wanted to start this.”

But to Lee, one of his most important services is the ability to repair, and make to order, footwear for disabled customers.

Through a partnership with the Sechang Orthopedic Shoe Research In-stitute in Seoul, Korea — where Lee is originally from — Pacifi c Wearing Solu-

tions can offer ... wearing solutions to those who can’t be served by traditional footwear.

Creative problem-solving is right up Lee’s alley. He said he holds several pat-ents, including a solar-powered ventila-tion system for motor vehicles, an air cannon that fi res pingpong balls, a switch that automatically shuts off pow-er lines and gas valves for restaurants in the event of a fi re, and perhaps the most ingenious, a bathroom mirror that doesn’t get fogged up by a hot shower.

“My ambition is to utilize my innova-tive spirit in conjunction with this busi-ness, to provide high-quality service and unique solutions to customers,” Lee said.

Lee’s wife, Danah Lee, currently runs a garment cleaning and alteration busi-ness at Clackamas Town Center, which he said will soon be relocating to the new store.

“I really like Woodburn,” Simon Lee said. “I like the schedule and I like small towns.”

Tyler Francke covers all things Woodburn. He can be reached at [email protected] or 503-765-1195.

No business like shoe business

PAMPLIN MEDIA G ROUP: TY LER F RANCKE

Simon Lee demonstrates one of the machines his new b usiness uses to clean sneakers.

PAMPLIN MEDIA G ROUP: TY LER F RANCKE

Part of the b ack room workshop of Pacifi c W earing Solutions.


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FOR ADVERTISING INFORMATION CALL JEANNE WINTER AT 503-552-3325

By JOSEPH GALLIVANThe Tribune

Have you ever looked around your workplace of beige cubes and cheap swivel chairs and wondered,

“Where’s my kegerator-bean bag romper room? And why isn’t my boss out on the fl oor with us at a stand up desk?” Your time may be coming.

A report by local commercial real es-tate broker JLL gives an interesting look in-to the high-tech scene in Portland, and how it is spreading to normal jobs

The High-Tech Offi ce Outlook compared 34 markets in the United States, ranking Portland eighth (up from 16th in 2013) in JLL’s proprie-tary rankings. The rankings used six key economic drivers of high-tech growth:

■ High-tech services concentra-tion

■ Job growth■ Wage growth■ Share of U.S. venture capital

funding■ Intellectual capital■ Innovation and market dyna-

mism (which includes transportation and lifestyle factors.)

The report cited Portland’s “grow-ing talent pool, competitive wages and relatively low cost of living” as reasons why high tech fi rms are moving, expanding or growing here.

“We’ve seen strong growth among high tech fi rms in the last year with

employment in the sector rising more than 3.5 percent and this has been one of the major factors leading to a 4.8 per-cent increase in offi ce

rents,” said Eric Haskins, Senior Vice President, JLL.

He said landlords are scrambling to improve spaces in ways that ap-peal to millennials and the tech fi rms they love to work for.

“Class A rental rates have escalat-ed rapidly and close in Eastside op-tions have emerged as the economic option for entrepreneurial fi rms.”

Haskins told the Tribune he helped place Digital Trends, a sort of consumer reports for gadgets, in its

space in the U.S. Bank Corp. tower (Big Pink). In addition to open fl oor plans and a large kitchen, there’s a laundry room that grateful bicyclists often use. The washers and dryers are review units.

“A lot of fi rms are benching,” says Haskins referring to the trend for working at long, tables opposite each other instead of in cubicles. The space saved is then used for break out rooms and community spaces.

“Much of the demand for these spaces is from tenants. They’re ei-ther tech companies, digital market-ing or advertising, or traditional ten-ants looking for more open space.”

Landlords are tearing out drop ceilings to expose spiral HVAC ducts and cable raceways for that postmod-ern Pompidou Center look — 37 years after it began.

He sees a lot of tech fi rms who want to be in historic downtown buildings, but which are built on quarter blocks and with fl oorplates eaten into by light wells. The fi rms soon stand to outgrow their typical 8,000 to 10,000 square feet, as well as demanding more than the electricity and the toilets can supply.

He cites the Block 300 Building,

formerly Robert Duncan Plaza fi eld with Feds at SW 2nd and Stark St. It has a cool, new lobby with a plant mural.

“People want bike racks, exercise rooms and outside gathering spaces near food and drink amenities,” says Patricia Raicht, Director of Research, Pacifi c Northwest at JLL, wrote the Portland section of the report. She explains that many of the images of “cool workplaces” you see in shelter magazines are often on suburban campuses, where urban amenities such as coffee shops and bikes are brought into make the staff feel more comfortable.

“A lot of it is trying to one-up the competition because it’s all about re-cruitment and retention of talented employees.”

He points out that fi rms such as Aruba and Shopkeep (going into the Commonwealth Building) and Bay Area fi rms such Airbnb arriving, are attracted by low real estate prices combined with lower salaries and lower cost of living. Staff are easier to retain because they are not re-sume building, changing jobs each year.

“Folks like Squarespace must be

saying why are we paying $70-$90 a square foot in Manhattan when we could pay $20-$30 in the historic Spalding Building at SW 4th and Washington?”

The report said that more than 30 percent of all offi ce leasing activity so far in 2014 can be attributed to high-tech fi rms.

Six traditionally high-tech-centric markets represent more than a fi fth (21.7 percent) of the offi ce space un-der construction across the country.

More than 14 million square feet of offi ce space is under construction in the Bay Area, New York’s Midtown South, Boston, Seattle, Portland and Austin.

The offi ce market in downtown Palo Alto in the heart of Silicon Val-ley is just 3.6 percent vacant with av-erage asking rents at $86 per square foot, compared to the national aver-age of $30. (New York City’s Plaza District at $85 per square foot.) Downtown Portland is 7.7 per cent vacant.

Now that’s weird.

TechTonic is a monthly column written by Joseph Gallivan. He can be reached at: [email protected]

Th e i r p r o d u c t s m i g h t b e i n v i s i b l e b u t t e c h fi r m s a r e m a k i n g t h e m s e l v e s s t a n d o u t i n r e a l e s t a t eThe tech boom shows

TechTonicNEWS ABOUT THE TECH INDUSTRY


MEDICAL TEACHING CLINICFINDS NATURAL FIT IN BEAVERTON

If the nearly 400 patients who sought out treatment at the Na-tional College of Natural Medi-cine’s temporary clinic space at

the Elsie Stuhr Center are any indica-tion, Beaverton residents are more than ready to embrace holistic, natu-ropathic-based health care.

The Southwest Portland-based school and clinic responded to the popularity of its services at Beaver-ton’s senior activities center by open-ing a permanent teaching clinic in Beaverton at 11975 S.W. Second St. in July.

Located on the fi rst fl oor of a com-mercial building next to Beaverton’s Social Security Administration offi ce, the 1,760-square-foot NCNM Beaver-ton Clinic is the school’s second natu-ral medicine teaching clinic and its fi rst outside of Portland city limits. The space features fi ve examination rooms, a conference room and small waiting area.

The clinic, which also provides free parking, offers naturopathic medi-cine practice from licensed primary care physicians, laboratory services, a discounted herbal “medicinary,” or herbal pharmacy. A range of com-mercial insurance plans are accept-ed, as well as Oregon Health Plan Open Card and CareOregon patients. Payment options, including fi nancial assistance, are available for those in need.

“We’re still adding on services and treatment options,” said Lori Knowles, NCNM’s community clinics manager. “We’re still building mo-mentum.”

The new clinic replaces a tempo-rary clinic space at the Stuhr Center on Southwest Hall Boulevard, where NCNM offered low-cost health servic-es for uninsured and underserved pa-tients starting in 2011.

“A lot of those patients migrated over here,” Knowles noted. “They like having more fl exibility and more options.”

A different modelThe clinic allows the college’s bilin-

gual staff and practitioners to see pa-tients in a fully appointed medical fa-cility while expanding the school’s ability to see others in the communi-ty who want to experience natural medicine.

The clinic’s naturopathic physi-cians are licensed in Oregon to pre-scribe and review pharmaceutical medications in addition to herbal medications to treat conditions from allergies, colds and fl u, to chronic and acute ailments such as diabetes, and gastrointestinal and heart disease.

NCNM President David J. Schleich said the Beaverton facility will appeal to local patients familiar with naturo-pathic and holistic treatment as well as new patients who are curious but have not ventured beyond conven-tional Western medicine.

“By expanding our campus with a new location in Beaverton, we’re im-proving our ability to offer low-cost natural medicine to Washington County’s growing population, some of whom remain uninsured due to lan-guage and cultural barriers,” he said. “At the same time, we’re increasing the opportunity to serve insured new patients who want holistic health care but are unable to travel to our Portland campus clinic.”

Rather than just treating symp-toms after they’ve developed, the ho-listic approach is designed to explore root causes of health problems and create a comprehensive treatment strategy that encompasses diet, exer-cise, practices such as acupuncture and massage and the use of vitamins

and herbal medicines. “Because this is a teaching-clinic

model that concentrates on really thorough, holistic treatment by ex-amining root causes and developing a treatment plan, patients love it be-cause they’re getting so much atten-tion,” Knowles said. “It’s a very differ-ent model.”

Successful switchBeaverton resident Becky Richter,

who learned about NCNM from her sister, a patient at the Elsie Stuhr community clinic, said she found re-lief from digestive discomfort that conventional medical doctors couldn’t seem to diagnose or treat, through the clinic’s approach.

“Not only could I see naturopathic physicians, but I could get tests and labs at reduced rates,” she said, not-ing items her insurance company wouldn’t cover. “It was really nice to

access a clinic that provided good care, along with medical labs and tests that I could pay for.”

With public perceptions about na-turopathic medicine changing, and the Affordable Care Act compelling more insurance plans to cover holis-tic health services, NCNM is poised to carve a growing service niche in the Beaverton area.

“I think this is a great facility,” said Jessica Nagelkirk, an attend-ing physician at the new clinic. “It sets itself up really well for primary care. We can see a diverse popula-tion — people with mental and emotional problems, people with di-abetes — and offer alternative treatment options.

“This is also good for people who don’t have transportation, where that’s a barrier to their care,” she added. “Come see us, and let our students practice.”

Following a July opening, the National College of Natural Medicine is still adding service and treatment options

BY SHANNON O. WELLS

TIMES PHOTO: JONATHAN HOUSE

National College of Natural Medicine 5 th year student Irina Mikhailichenko, left, practices checking for a heartb eat under the watch of doctor Jessica Nagelkirk in the college’ s new Beaverton location.

PAMPLIN MEDIA G ROUP F ILE PHOTO

Dr. Jill Stanard, in 2 0 1 0 , measures tinctures for dispensing within the clinic’ s medicinary at the National College of Natural Medicine ( NCNM) . The clinic is the oldest accredited naturopathic medical college in North America and offers graduate programs in naturopathic medicine and classical Chinese medicine b lending ancient healing wisdom with modern science.

Sandy Sz ab at, MPH, ND, talks with David Sielaff in 2 0 1 2 during a treatment at the National College of Natural Medicine. PAMPLIN MEDIA G ROUP F ILE PHOTO


BOLI’ s 30 th annual Employment Law Conference will help employers navigate complex issues

The Bureau of Labor and Indus-tries has opened registration for the 30th Annual Employment Law Conference to be held Nov. 6-7 at the Oregon Convention Center in Portland, the agency announced.

The state’s premier employer training event will feature 24 ses-sions on frequently requested top-ics such as workplace harassment, rightful discharge, Portland’s sick leave ordinance, dealing with diffi -cult employees, protected leave laws, and religious discrimination and accommodations. The confer-ence agenda and registration infor-mation can be found on BOLI’s website.

“BOLI’s employment law experts will help employers navigate fre-quently complex issues during the conference,” said Labor and Indus-tries Commissioner Brad Avakian. “We’ve organized the conference based on what local employers most frequently ask about when we meet with them or fi eld the nearly 20,000 calls that come into our agency each year.”

Interested employers can also email the agency [email protected].

F irst National Taphouse arrives in Portland

Born in Eugene, First National Taphouse has opened its second lo-cation in the Portland State Uni-versity college district at 1962 SW 5th Ave.

Originally located in the build-ing that housed Eugene, Oregon’s fi rst bank, First National Taphouse was named after the First National Bank. The one-year-old brand pays homage to history utilizing repur-posed decor. Everything, from the mahogany double French doors and the liquor neon sign that date back to the 1920s, to the beaten wood fl oor and the vintage sports gear, contributes to create a sense of timelessness. While honoring past generations, First National Taphouse also pioneers the explo-ration of a new west of beers. With a menu of elevated heritage-based food designed to pair with beer, First National Taphouse welcomes novices and experts to walk through its doors for an education-al and satisfying experience.

“We pledge to be stewards of ev-eryone’s beer experience,” says co-owner Steve Master. “We want to

be a trusted advisor who will con-nect locals and travelers with a beer they’ll love, while providing the very best food to go with it.”

AARP Oregon names new Associate State Director for Advocacy

Jonathan (Jon) Bartholomew has been selected AARP Oregon’s ASD for Advocacy, announced State Director Jerry Cohen. Bar-tholomew will replace Rick Ben-nett who retired from the position at the end of Au-gust.

Bartholomew has an impressive background in public policy de-velopment and ad-vocacy and volun-teer recruitment and engagement. He comes to AARP from the Ore-gon Chapter of the Alzheimer’s As-sociation where he has served as Public Policy Director. During the 2014 Oregon legislative session, Bartholomew led the efforts to en-act a Silver Alert bill, developing strong bipartisan support from state legislators.

He also coordinated the effort to craft the fi rst ever State Plan for Alzheimer’s disease in Oregon (SPADO), which was a broad stake-holder effort to develop a plan to address the impact of Alzheimer’s in the state. Having successfully lobbied for state funding to imple-ment the recommendations of the state plan he currently co-chairs the SPADO Implementation Team coordinating with state agencies, nonprofi t groups, businesses and other stakeholders. Bartholomew was appointed to the Governor’s Commission on Senior Services by Governor John Kitzhaber.

SBA will continue to z ero out fees on small dollar loans

The U.S. Small Business Admin-istration has announced that fee relief on 7(a) loans of $150,000 or less implemented last year and originally slated to expire on Sept. 30, will be extended through fi scal year 2015. SBA has also announced that fee relief measures for SBA Veterans Advantage will also be renewed as well as enhanced. Both the extension of the fee relief for 7(a) loans $150,000 and under, and the extension and enhancement of the fee relief for SBA Veterans Ad-vantage loans became effective to-day, Oct. 1, and will remain in ef-

fect through Sept. 30, 2015.“We zeroed out fees on loans of

less than $150,000 to any 7(a) bor-rower because we don’t want SBA fees to be an impediment to getting capital out to communities where it can make a game-changing dif-ference, especially to our under-served communities, who use these small dollar loans more fre-quently,” said SBA Administrator Maria Contreras-Sweet. “We also owe a debt of gratitude and so much more to our service men and women, and veterans who are the cornerstone of small business own-ership. This fee relief will continue to help veterans business owners who grow their businesses, create jobs in their communities, and put their training and passion for our

country to work in their neighbor-hoods.”

The most recent numbers avail-able for FY14, as of Sept. 12, show that the SBA had guaranteed 28,806 for over $1.74 billion in loans $150,000 and under, up from 23,337 loans and $1.34 billion in FY 2013. This represents an increase of 23.4 percent and 30 percent, respective-ly. Fee reductions on these loans resulted in almost $19 million in savings to small business borrow-ers in FY 2013.

Under the original fee relief for 7(a) loans that began Oct. 1, 2013, both the upfront guaranty fee and the annual servicing fee (on-going guaranty fee) were reduced to zero on loans $150,000 and under.

The SBA announced that:

■ The provisions that began on Oct. 1, 2013, for 7(a) loans under $150,000, will now be continued for fi scal year 2015. For loans larger than $150,000, the annual servicing fee lenders pay will be 0.519 per-cent of the guaranteed portion of the outstanding balance of the loan. The upfront guarantee fee will continue to depend on both the amount and the maturity of the loan.

■ For SBA Veterans Advantage loans, the conditions implemented on Jan. 1, 2014 zero upfront guar-anty fee on all SBA Express loans to veterans of $150,000 up to $350,000 will remain unchanged for FY 2015.

CONTINUED / Page 1 4

YOURBUSINESSEmail your business briefs to:[email protected]

By KATY SW ORDPamplin Media Group

For Ron Wolfe, opening a Premier Community Bank in Newberg is like coming home. He started his banking career at Columbia River Bank until it closed during the recession.

“I joined Columbia Community Bank in Hillsboro, a locally based, privately held community bank,” Wolfe said.

So when Columbia State Bank — the bank that took over Co-lumbia River Bank — closed last year, he said it was the perfect opportunity to return to New-berg.

“We thought this is good tim-ing for us as a business bank, a community-based bank, for us to come in,” he said.

Before beginning the move, they decided to change the bank’s name for clarity.

“With our names being so sim-ilar, we all decided we need to clear the air, so early this year we fi nalized our name to Pre-mier Bank,” he said. “That’s laid the foundation for us to create that separation.”

So although the bank is differ-ent from the original tenant, it’s coming full circle for Wolfe at the 901 N. Brutscher St. location.

Premier Community Bank has a focus on business banking, but once fully opened in January, it will offer complete consumer services.

“This market is growing and it’s going to be very vibrant with the bypass,” Wolfe said. “When you think about it, we have a great university, state of the art health care — we have a lot to of-fer and good people. For us this is home.”

As the space was designed for a bank, he said they are really just waiting for licensing to be approved for the new location, as well as fi nishing some cosmetic touches before opening the doors.

“The banking model has

changed from a consumer bank-ing standpoint. People don’t go in the bank like they used to as far as physically needing to go in for a transaction,” he said. “So we’re changing the look and feel a little bit just to be more condu-cive.”

This means more space for meeting with bankers if need be and less time waiting in line to visit with a teller, Wolfe said.

“It won’t be traditional,” he said.

The new bank should open the second week in January or so, he said, but services are still avail-able in the meantime.

“We can facilitate, it’s just a matter of people contacting us,” Wolfe said.

New Columbia State Bank is run by community members

Premier Community Bank to open in Newberg

PAMPLIN MEDIA G ROUP: G ARY ALLEN

By opening a new b ank where Columb ia State Bank formerly resided, Ron W olfe is returning to Newb erg. Premier Community Bank will offi cially open in January.BARTHOLOMEW

1 4 BUSINESS TRIBUNE Tuesday, October 28, 2014

■ The upfront guaranty fee for non SBA Express loans $150,000 up to $5 million will now be re-duced by 50 percent. There is no reduction on the annual servicing fee for loans over $150,000.

Creative Circle coming to PortlandCreative Circle, a creative

staffing agency, is bringing their proven approach to delivering creative-talent solutions to cli-ents in Portland.

For more than 13 years and now in 20 locations across North America, top creative talent and businesses alike have made Cre-ative Circle their go-to resource for matching talent with need.

“We are very excited to be opening a Creative Circle office in Portland,” said Terah Bros-sart, regional director at Cre-ative Circle. As a Pacific North-west native, Portland holds a special place in my heart. It’s been wonderful to watch it grow into such a vibrant creative com-munity.”

Creative Circle’s team of indus-try-veteran staffing consultants will be matching clients across Portland’s creative industries to only the most rigorously vetted talent, in categories like Ac-count, Art, Copy, Interactive, Marketing, Media, Production, Search, and Usability. So wheth-er they’re looking for freelance or full-time, and regardless of discipline — art, social media, coding, and much more — clients will find the talent they need at Creative Circle.

Scott Edwards Architecture continues to ex pand staff

The Portland-based regional design firm of Scott Edwards Ar-chitecture had announced the addition of several new staff members in response to new contracts awarded and expand-ed work from existing clients. They include: Brian Hoeft, Proj-ect Architect, Takanori Tomita, Project Manager, Andrew Stohner, Architectural In-tern, James Bar-wegen, Architec-tural Intern, Joe Broders, Archi-tectural Intern, Haley Blanco, Ar-

chitectural Intern and Abigail Mar-latt, Interior De-signer.

Hoeft, Project Architect, LEED AP, earned his Bachelor of Ar-chitecture from the University of Oregon and brings to the firm more than 11 years of design ex-perience in a variety of commer-cial and residential projects

Tomita, Project Manager, brings to the firm more than 14 years of experience with a focus on high-end contemporary residential proj-ects.

Stohner, Archi-tectural Intern, LEED AP, brings

to the firm more than seven years of experience and earned his Masters of Architecture

from the Univer-sity of Idaho, Moscow, Idaho. He is currently working on vari-ous projects at Salem Hospital

Barwegen, Ar-chitectural In-tern, LEED Green Associate earned his Bach-elor of Environ-mental Design from the Univer-sity for Colorado, Boulder, Colora-do. He is current-ly a team mem-ber on Banfield Pet Hospitals.

Broders, Archi-tectural Intern, LEED AP earned his Masters of Architectural from Montana State University, Bozeman, Mon-tana. He has a particular inter-est in modern residential de-sign.

Blanco, Archi-tectural Intern, earned her Mas-ter of Architec-ture from the Uni-versity of Oregon. Previous to join-ing SEA, she worked in the Salt Lake City area on various college and university higher education projects.

Marlatt, Interior Designer, LEED Green Associate, earned her Bachelor of Fine Arts from Marylhurst University, Lake Os-wego. She enjoys working on ed-ucation and residential projects. Marlatt is currently a team member for the Salem Health Outpatient Rehab Center and the Montgomery Condos

Homegoods opens in Tualatin HomeGoods opened a new

store in Tualatin. The 25,000 square-foot store is

located at Interstate 5 and South-west Nyberg Street. The new Tu-alatin location will be the third HomeGoods store in the Portland market.

On Grand Opening day, the first 1,000 shoppers at the Tuala-tin location received a free reus-

able HomeGoods shopping bag.“We are happy to be opening

in Tualatin and excited to pro-vide shoppers with incredible prices on designer and brand name home décor and accesso-ries, as well as unique pieces from around the world,” states Ken Canestrari, President of HomeGoods. “The new store will offer an exciting shopping expe-rience and an always-changing selection of high-quality home fashions at extreme values, every day.”

HomeGoods will support the Tualatin community by hiring store management and associ-ates from the local area. The Tu-alatin store is expected to fill ap-proximately 60 full and part-time positions.

Local financial advisors earn high score in client relationship study

Joshua T. Greg-ory, Private Wealth Advisor, Dale N. Donald-son, Private Wealth Advisor and Richard K. Singer, Financial Advisor with Wealthbridge Ad-visors, a private wealth advisory practice of Ameri-prise Financial Services, Inc., have received high marks from their clients in the recent Ameri-prise Financial Client Relation-ship Study. Wealthbridge Ad-visors ranked in the top 25 percent of all Ameriprise advisors, receiv-ing a score of 96 percent or higher based on overall client satisfac-tion.

Conducted by a third party research organiza-tion, the survey provides clients with the opportunity to rate their advisor in several areas includ-ing whether their advisor pro-vides them access to other spe-cialists when appropriate, ex-plains fees clearly and contacts them when market conditions change significantly.

■ From page 13

YOURBUSINESSEmail your business briefs to:[email protected]

By BARB RANDALLPamplin Media Group

Gourmet Products has changed its name to GP Kitch-ens and has opened a second lo-cation in Portland’s Pearl Dis-trict.

The new fi ne food market joins the fl agship in Lake Oswego, and will provide dine-in or take-out lunch and dinner selections, as well as catering services.

“As we explored opportunities for expansion, we could not imag-ine a better setting than the Pearl District,” James Joyce, co-owner and executive chef of GP, said. “With vibrant business and resi-dential communities, it’s the per-fect neighborhood to share GPs tasty, gourmet and healthful foods.”

Joyce said he and his wife, Vicky Davies, spotted the vacant

space on Northwest 10th Avenue in June.

“We were having coffee across the street and saw the ‘for lease’ sign. Vicky said it would be kind of interesting to be in the Pearl,” he said. “We’d been discussing a satellite model and this seemed like it was the right size, the right location and the right demograph-ic.” They contacted the realtor and then brought staff members down to view the space.

“A lot of times things start off with a lot of energy and then sort of peter out,” he said. “This one was very even and level all the way through and it just seemed right.”

The new location will have an eclectic style similar to the Lake Oswego store however the so-phistication of the Pearl offered an opportunity to update the company.

“It seemed like a good opportu-nity to rebrand ourselves,” Joyce said. They chose to rename the company GP Kitchen.

Restaurant, caterer going by GP Kitchen

Gourmet Productions opens second location

James Joyce, co-owner and ex ecutive chef of G P Kitchen, will open a second location in Portland’ s Pearl District nex t week. The restaurant and caterer was previously known as G ourmet Productions.SUBMITTED PHOTO

HOEF T

TOMITA STOHNER

BARW EG EN

BRODERS

BLANCO

MARLATT

G REG ORY

DONALDSON

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THE ECONOMICS OF FILMTHE DOWN AND DIRTY

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