New Tech Firms and Portland's City Core

Cool spaces attract talented workers, defying the economic downturn

It turns out that empty-nesters with excess discretionary income are not the only ones who gravitate to Portland's urban core.

To attract top talent, software companies are briskly filling large, open spaces in older downtown Portland buildings with fresh faces, ideas and energy.

In the past two years, dozens of software companies have taken root or expanded in downtown. Some have kept adding space in the district even amid worries of a broad economic slowdown. The trend has gradually given downtown a burgeoning tract of the tech scene, traditionally concentrated in Portland's western suburbs.

Two crucial factors are driving the trend: Software companies -- particularly those focusing on social networking, online advertising and finance -- are thriving. And a hip office in a central location can be a competitive edge in attracting top-notch staff.

"Software companies have always tended to go toward these types of creative spaces, but this is now a full-grown phenomenon," said Harvey Mathews, executive director of the Software Association of Oregon. "I get calls from people from all over the place, and all of them want this Old Town, downtown, brick funky space."