Groundwork - September 2025
a recurring column from the Economic Development Division
groundwork | noun | graʊndˌwɜrk
- a foundation; basis
- work that is done as a preparation for work that will be done later
Groundwork is a new column in the Boones Ferry Messenger dedicated to uncovering the behind-the-scenes efforts shaping Wilsonville’s economic future. From business growth and job creation to community investments and long-term planning, we’ll explore the big questions and ongoing work that make Wilsonville a great place to live and do business.
What is the City doing about all of the vacant buildings in Wilsonville? Can the City do anything to change this?
It’s true: there are several highly visible vacant buildings in Wilsonville—the former Fry’s Electronics, the former Regal Cinemas, the former Albertson’s, the Peyton Business Center, and most recently, the former Rite-Aid.
Why? Is Wilsonville “business friendly”? Is Wilsonville a favorable market/trade area?
There’s no universal answer, but there are some common themes. The most accurate answer is—there’s a unique story or reason for each building. Let’s take it one-by-one.
Fry’s: There has been a lot of interest in this building, contrary to what the long-standing vacancy may suggest. Zoning policy makes a reuse of the existing building challenging, but far from impossible. A creative reuse is absolutely possible, but costly. Most of the interest has been from developers that wish to raze the existing building and redevelop the 15-acre site. In all cases, the owners and potential buyers have not been able to strike a deal, so the building remains vacant.
Regal: This is a “single-use” building, which makes reuse challenging. But, spoiler alert, the property has been purchased by an investment group and they are currently evaluating redevelopment options. Stay tuned!
Albertson’s: This building is still leased by Albertson’s even though it is vacant. This is an outcome of the Safeway-Albertson’s merger in 2015. There are several years remaining on the lease, so we can’t expect a new use to occur sooner than that timeline, although it is possible. Currently, the building is subleased and used by the Sunshine Division as a fulfillment center.
Peyton: This building has an interesting history. It was occupied most recently by the State of Oregon during the pandemic. It is configured for office use, but exists within an industrial zone. The ownership is working proactively with brokers and the City to identify a new user.
Rite-Aid: This vacancy is very recent. Rite-Aid is closing stores all over the country, and this has nothing to do with Wilsonville specifically. It is a desirable location. The shopping center management will be working with prospective tenants.
What can the City do?
The City’s economic development staff works closely with private property owners to identify new users for vacant properties. As noted above though, there are unique circumstances that make several of these vacancies challenging. Some cities offer business incentives, in the form of loans, grants, or tax abatements. Such programs are most commonly funded through urban renewal (aka tax increment finance), but not always. Wilsonville offers a tax rebate program for industrial development to incentivize capital investment and job creation. More info at wilsonvilleoregon.gov/WIN
