Healthy vacancy rates continue, despite slight uptick in office and industrial vacancies
Compass Commercial Real Estate Services has released its second-quarter 2016 market survey results in the most recent issue of Compass Points.
“The commercial real estate market experienced a few minor hiccups in the second quarter, due to a few new larger vacancies in the industrial and office buildings contained within our survey, but the rates are still healthy, especially compared to what we faced in 2011 and 2012,” said Howard Friedman, CCIM, a Compass Commercial partner who serves as editor for Compass Points.
Bend’s citywide office market showed positive net absorption of 8,766 sq. ft. during the quarter. However, despite the positive absorption, the citywide office vacancy rate increased slightly, due to the addition of a new office building to the survey at 1015 Emkay Drive. The rate rose from 6.26% to 6.4% as a result. There is now just less than 160,000 sq. ft. available for lease, up from 155,000 sq. ft. in Q1. This is still considered a healthy rate and certainly a welcome number, remembering the second quarter of 2012 when the vacancy was at 21.9%.
Bend’s industrial vacancy rate increased from 3.4% last quarter, up to 6.7% in Q2, in part due to Advanced Energy vacating its 83,000 sq. ft. facility on Brinson Boulevard resulting in the current 281,844 sq. ft. of industrial property available for lease, compared to the first quarter report of 141,390 available sq. ft. This is still down from the peak of 794,000 sq. ft. reported in the third quarter of 2010, when the vacancy rate was 20.0%, so just a blip on the radar screen.
Retail vacancy in Bend dropped from a rate of 4.7% at the end of Q1 to 4.5% at the end of Q2. Four out of the seven Bend retail submarkets surveyed recorded positive net absorption, and three were negative.
Redmond’s industrial market vacancy dropped to 4.6% from the previous quarter’s reported rate of 4.8% — a drastic improvement from 2011’s report of 29.9% vacancy in that market.
Compass Points, a quarterly publication of Compass Commercial Real Estate Services offers comprehensive commercial real estate surveys of the Central Oregon market. The report provides a detailed look at quarterly vacancy and absorption data in office, retail and industrial product types throughout Bend’s primary submarkets, as well as the Redmond industrial market. Absorption data contained in the report pulls from samples of buildings over 3,000 sq. ft.
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.