PORTLAND, Ore. – A major real estate investor is backing out of Portland’s Pearl District, putting dozens of retail spaces on the market in what some see as a stark reflection of the city’s shifting fortunes. While the official explanation cites high interest rates and stock performance, many believe the real story lies in how dramatically Portland—and particularly the Pearl—has changed over the last five years.
From Jewel to Liability
SITE Centers Corp., an Ohio-based investor, purchased “The Blocks” in 2019, acquiring 44 storefronts across 10 buildings totaling nearly 100,000 square feet. At the time, SITE described the Pearl District as “one of the most desirable places to live on the West Coast.”
Just six years later, the same portfolio is quietly being shopped around. Willamette Week summarized the situation bluntly: “The neighborhood has changed since SITE’s purchase.”
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For many Portlanders, that single line feels like an understatement.
The Pearl’s Historic Roots
The Pearl wasn’t always a high-end destination. Until the mid-1980s, it was known as the Northwest Industrial Triangle, a working waterfront filled with warehouses, railyards, and shipping facilities that fueled Portland’s timber and manufacturing economy.
In the 1920s, freight trains cut across the neighborhood while brick buildings stored lumber, grain, and other goods. It was a gritty, utilitarian zone—far removed from the condos, cafes, and galleries that now define the area.
The district’s rebirth began in the late 20th century, when artists and creatives moved into its abandoned warehouses. Local gallery owner Thomas Augustine helped coin the name “Pearl,” likening the crusty exteriors of old buildings to oyster shells hiding pearls of cultural activity inside. He later revealed it was also a tribute to his friend, Ethiopian missionary Pearl Marie Amhara.
From Vibrancy to Vacancy
By the 2000s, the Pearl District had become one of Portland’s most celebrated neighborhoods. It hosted the monthly First Thursday Art Walk, attracted upscale retailers and restaurants, and stood as a national model for urban revitalization.
But the COVID-19 pandemic struck a severe blow. In March 2020, Governor Kate Brown issued Executive Order 20-07, which shuttered restaurants, bars, gyms, theaters, and other nonessential businesses. While national chains and grocery stores weathered the storm, many small businesses in the Pearl closed permanently. By the time restrictions lifted, blocks of once-thriving storefronts sat empty.
Drug Decriminalization and Public Safety
The decline deepened in November 2020, when voters approved Measure 110, decriminalizing possession of small amounts of hard drugs such as heroin, meth, and fentanyl. The measure aimed to treat addiction as a public health issue, diverting cannabis tax revenue toward rehabilitation and recovery services.
But funding delays, staffing shortages, and program failures plagued the rollout. Some grants were even terminated due to misuse. By 2024, the legislature passed House Bill 4002, partially reversing the measure by reinstating misdemeanor charges for possession while maintaining underfunded treatment programs.
Critics argue that, in the meantime, sidewalks across the city—including the Pearl—became open-air drug markets. Combined with homelessness and rising crime, the Pearl’s reputation for safety eroded.
Residents Voice Frustrations
The Pearl District Neighborhood Association recently issued a call to action, urging members to contact city leaders about new homeless shelters planned for the area. Letters poured in from longtime residents.
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Craig Boretz, a 20-year resident, wrote: “The spillover impact has created an environment that feels unsafe, and is littered with trash, garbage and tents. This is the principal reason there are over 100 empty retail storefronts.”
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Bill Tannen warned: “It will destroy what is left of property values in the Pearl. Businesses have already fled. Your tax base is dwindling when homeowners are fleeing (if they can).”
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Dick Schneider cautioned: “The Pearl District will be completely overwhelmed by these shelters, which will continue to undermine any sense of security for residents and discourage what few businesses remain.”
Others shared personal accounts of crime. Linda Witt said her building’s concierge was attacked with a pipe. Developer Al Solheim recounted rejecting a lease offer from an international EV charging company over concerns about safety.
Major Businesses Leave
The fallout has been highly visible.
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Starbucks closed its Pearl District store in 2022 citing safety issues.
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REI shut its 20-year Pearl location in 2024 after repeated break-ins and theft.
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Erath Winery closed its tasting room in August 2025—the same week the city announced a new homeless shelter a block away.
Each closure added to the perception of decline, reinforcing fears that the Pearl’s best days are behind it.
SITE’s Exit Strategy
SITE Centers’ official offering materials market the portfolio as a “value-add opportunity” in a “prime infill location.” Missing, however, are mentions of rising crime, homelessness, or vacant storefronts.
Meanwhile, SITE’s own stock has plunged 40% this year, and leadership has blamed high interest rates and borrowing costs. But many observers argue the company’s exit signals a broader truth: the Pearl is no longer the investment prize it once was.
Leadership and Policy Under Fire
Critics say the Pearl’s struggles stem not just from economic cycles, but from leadership decisions. They cite pandemic shutdowns that devastated small businesses while leaving large corporations untouched, drug decriminalization policies that outpaced treatment infrastructure, and homelessness strategies that concentrated shelters in already strained neighborhoods.
“The Pearl District is paying the price for Portland’s political choices,” one business owner said privately. “Investors are walking away because they see no clear plan to restore livability.”
A City with a History of Reinvention
Still, the Pearl’s story is not only one of decline. Portland has reinvented itself before. The same creative energy that turned an industrial wasteland into a nationally admired neighborhood still exists.
Local residents and community groups continue to fight for their city, supporting small businesses, organizing cleanups, and demanding accountability from leaders. Many argue that, just as the Pearl rose once before, it could rise again—if given the right policies and investment.
The Future of the Pearl
For now, the future remains uncertain. Will investors see the Pearl as a long-term bet on Portland’s resilience? Or will SITE’s departure mark the beginning of a broader retreat from what was once the city’s “crown jewel”?
What is clear is that the Pearl District reflects Portland’s larger challenges: balancing compassion with accountability, revitalization with safety, and history with change.
Investors like SITE Centers may be leaving, but many Portlanders remain committed to the place they call home. The Pearl District’s next chapter will depend not just on real estate deals, but on whether the city can restore trust, safety, and opportunity in one of its most storied neighborhoods.
