Compass Commercial Real Estate Services has released its third-quarter 2016 market survey results in the most recent issue of Compass Points.
Bend’s citywide office market showed positive net absorption of 34,961 sq. ft. during the quarter. The vacancy rate fell from 6.4% to 5.1% as a result. There is now just over 126,000 sq. ft. available for lease, down from 160,000 sq. ft. in Q2. “We are in a very healthy time in the office market once again, with several new projects coming out of the ground as a result, and a sigh of relief can be heard from landlords who survived the recession, when the peak vacancy rate in the fourth quarter of 2010 was 22.1%. In fact, this represents the lowest office vacancy rate since Compass’ inception in 1996” said Howard Friedman, CCIM, a Compass Commercial partner who serves as editor for Compass Points.
Bend’s industrial market rebounded a bit in the quarter, after a disastrous Q2, when over 140,000 sq. ft. of negative net absorption was recorded, by gaining 49,013 sq. ft. of positive net absorption in Q3. The citywide industrial vacancy rate decreased as a result from 6.7% to 5.5%.
The citywide retail vacancy rate fell once again, although ever so slightly, from 4.49% to 4.45% at the end of Q3, the result of 1,778 sq. ft. of positive absorption. Three out of the seven retail submarkets in Bend recorded positive net absorption, two were negative, and two remained unchanged.
It’s been nine quarters since Redmond lost any ground in industrial occupancy, but Q3 broke that string, although in a very small way. The 1.5 million square foot industrial market recorded 3,393 sq. ft. of negative net absorption in Q3, although still resulting in a total of 30,938 sq. ft. of positive absorption for the year, and the vacancy rate rose just a tick from 4.58% to 4.59% at the end of the quarter.
In addition to the market survey results, Friedman addresses the big question on everyone’s mind, “Is this a repeat of the frenzy of the mid 2000’s, and should we be wary of another downturn?” Noting that “Everywhere you go, housing developments are sprouting up; commercial projects are coming out of the ground for the first time in years; a new four-year university has opened its doors for the first time in Oregon since 1974; traffic is undeniably heavier than in recent years, and tourism is at an all-time high.” For answers to this pressing question, visit the Compass Commercial website to view the Q3 issue of Compass Points at http://www.compasscommercial.com/market-research.
To view the complete report and receive the quarterly publication, sign up at www.compasscommercial.com/SUBSCRIBE or call (541) 383-2444.
About Compass Commercial Real Estate Services
With integrated services in brokerage sales, leasing, asset and property management and construction services, Compass Commercial helps buyers, sellers, landlords and tenants achieve their unique commercial real estate goals. Today, the company celebrates 20 years of serving clients in Central Oregon, continuing a tradition of excellent client service and superior market intelligence. The team’s collective industry expertise includes Central Oregon’s only two Society of Industrial and Office Realtors (SIOR®) designees, 11 Certified Commercial Investment Members (CCIM), 3 Certified Property Manager (CPM®) designees and the distinguished Accredited Management Organization (AMO®) designation from the Institute of Real Estate Management. Learn more at www.compasscommercial.com. Follow us on Twitter @CompassCom.