CCIM (Certified Commercial Investment Member) Institute has released its Q3 report for 2019. In this edition, CCIM tackles the myths associated with online shopping and the effects it has on retail leasing. According to a report by the International Council of Shopping Centers (ICSC), “online and brick-and-mortar retail have a symbiotic relationship.” CCIM Insights provide powerful facts to support predictions made on the future of the industry.
Principal broker and partner, Pat Kesgard, CCIM spoke with Paul Hanson, host for the November 4th installment of the KBND Morning News Guest Interview. Pat provides a comprehensive overview of the latest Compass Points® Q3 2019. Find out what’s happening with retail, office and industrial spaces in Bend and Redmond.
Listen to the full interview HERE.
Last month, Compass Commercial Real Estate Services celebrated clients, vendors and designated charities at Tetherow Pavilion for our Annual Compass Appreciation Party. This event allows us to celebrate the relationships built over the years and to raise money for charities that are helping the community. The 2019 and 2020 grantees of the Compass Cares program are KIDS Center and Deschutes Children’s Foundation. As recipients of the Compass Cares Program, each charity will receive $2,500 per year over the next two years from Compass. In addition, the two charities participate in the Annual Appreciation Parties where they receive direct donations as well as proceeds from a silent auction. This year’s party raised a grand total of $13,500 for both charities.
President Jay Lyons, SIOR, CCIM serves on the board of the KIDS Center, the only child abuse intervention center in Central Oregon. KIDS Center provides child abuse evaluations that include a head-to-toe medical exam, child-friendly forensic interview and family support services to help connect families with community resources to minimize life stressors and reduce future opportunities for abuse to occur.
Regional Property Manager Luke Ross serves on the board of Deschutes Children’s Foundation (DCF). DCF provides classroom, office space and free facility management for other nonprofits who provide crucial services to children and families. At DCF’s four community campuses 25 nonprofits help over 22,000 children and families annually to live safer, healthier and happier lives. DCF increases collaboration among nonprofits while drastically reducing operating expenses and improving access to vital services for children and families in our community.
The event was sponsored by businesses who provided generous donations, including silent auction items and beverages for the event. Tetherow was our gracious host and venue sponsor for the night. Beverage sponsors included Crater Lake Spirits, 10 Barrel Brewing, Boneyard Beer, and Humm Kombucha. Cascade Garden Center arranged flowers which decorated The Pavilion during the event then brought continued joy to patients of Partners in Care the following day. Cascade Business News played a key role as media sponsor and offered free subscriptions to attendees.
The silent auction delighted our guests with 22 items featuring paintings, wine baskets, golf packages, gift cards and more. We are very grateful to our silent auction sponsors who included Webfoot Painting, Broken Top Club, Nashelle Jewelry, Awbrey Glen Golf Club, DrinkTanks, Bledsoe Family Winery, Hydro Flask, Humm Kombucha, The Loft of Bend, The Friedman Family, Brickhouse, Bend Magazine, and the Blacksmith. Other donors included Hardy’s Restaurant, The Lemon Tree, Stand on Liquid, Eco-Scapes, Knife River Corporation, Julia Duke Photo, Newport Avenue Market, Dana Wilson, and Jennifer McCaffrey.
We would like to extend our sincerest thank you to all who attended, sponsored, and donated to make this event and our year a success.
A Look Into Our Economic Future:
In this issue’s cover article, principal broker and partner Howard Friedman, CCIM discusses the economic future and how it affects the real estate industry.
Bend’s Office Market:
Compass Commercial surveyed 208 buildings for the third quarter 2019 office report. The buildings in the sample totaled just over 2.6 million square feet. Negative net absorption of 23,431 sq. ft. was recorded during the quarter moving the vacancy rate up to 3.9% from 2.98% in Q2. There is now 102,360 sq. ft. available for lease, up from 77,257 sq. ft. in Q2.
Bend’s Retail Market:
Compass Commercial surveyed 256 retail buildings totaling 4,503,899 square feet for the third quarter of 2019. The citywide vacancy rate fell dramatically from 5.39% at the end of Q2 2019 to 3.30% at the end of Q3. This was primarily due to a significant lease signed during the quarter in the north97 submarket.
Bend and Redmond Industrial Markets:
In Bend, we surveyed 314 buildings for the third quarter 2019 industrial report, totaling 4,427,296 square feet. The industrial market gained 34,051 sq. ft. of positive absorption in Q3, and the vacancy rate fell from 2.71% in A2 to just 1.58%. There is now 70,054 sq. ft. of industrial space available in Bend, compared to 119,105 sq. ft. in Q2.
In Redmond, the market gained back some of the losses incurred in the second quarter, with 14,500 sq. ft. of positive net absorption recorded in the third quarter of 2019. The vacancy rate fell from 4.6% to 3.8%. Redmond’s industrial sector now has 1,637,179 sq. ft. of total leasable space, now including owner occupied buildings and buildings under 3,000 sq. ft.
To view the complete report, sign up to receive our quarterly publication at https://www.compasscommercial.com/POINTS or call (541) 383-2444.
Compass Points® is a quarterly publication of Compass Commercial Real Estate Services offering comprehensive surveys of the Central Oregon commercial real estate 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.
Bend REALTOR® Wins 2019 Distinguished Service Award
I would like to take this opportunity to report on an exceptional individual in our real estate community, who, with full disclosure, happens to be my brother.
Lester Friedman, Broker with Coldwell Banker Bain, was recently awarded the Distinguished Service Award by the Oregon Association of REALTORS®, along with fellow REALTOR® Don Livingood of Medford. The award has been presented to just 30 REALTORS® since 1993, and since that time only four Central Oregon recipients have been chosen. Lester joins local REALTORS® Everett Turner, Mike Kozak and Michael Hoover in that prestigious DSA club.
The OAR Distinguished Service Award (DSA) was established in 1993 to recognize outstanding service and contributions to the Association over a period of at least 10 years. Criteria for the award includes service in areas such as committee membership, committee leadership, and service as a state director, officer or National Association of REALTORS® director. Lester is a member of the Central Oregon Association of REALTORS® and has been active in residential and commercial transactions and education for over 20 years. In 2012, Lester was also awarded the Central Oregon Association of REALTORS® REALTOR® of the Year (ROTY) award. The Local ROTY program is designed to recognize a REALTOR® member of each Local Association/Board in Oregon who has provided outstanding service to the REALTOR® organizations (local, state and national), their profession, and their community primarily during the previous 18 months. According to the DSA selection criteria, no recipient of the ROTY award may be eligible for the Distinguished Service Award until five years have elapsed from their ROTY award. Lester is very well respected by his peers, and provides unparalleled access to his wealth of knowledge about all things real estate related.
Lester has also been active at the state and national levels for real estate since being licensed in 1999. He has been a voice for real estate on the Political Affairs Committee, ROTY Committee and Professional Development Committee. For more than ten years, he has served as a State Director. Lester is very active in the local community as well, serving on the Central Oregon Community College Budget Committee, the Bend Chief’s Citizen’s Advisory Committee and has been a Mt. Bachelor Mountain Ambassador for many years, assisting guests with a top notch experience while visiting the mountain to ski or snowboard. Lester was selected as the recipient of the 2019 OAR Distinguished Service Award by the REALTOR® of the Year Committee, based on his outstanding legacy of work in his local, state, and national REALTOR® communities. Congratulations, Lester and thanks for all you do in the community and our profession!
Howard Friedman, CCIM, is a Partner and Managing Principal Broker at Compass Commercial. He joined the firm in 1999.
Compass Commercial Real Estate Services is pleased to announce notable commercial transactions closed by the firm during the month of September 2019.
Brokers Dan Kemp, CCIM, Jay Lyons, SIOR, CCIM and Grant Schultz of Compass Commercial Real Estate Services, along with Erich Schultz of Schultz CRE, represented the buyer, Robinson Partners, in the acquisition of 62910 Peerless Court in Bend. The 17,250 sq. ft. industrial building on 1.62 acres sold for $3,000,000.
Broker Graham Dent of Compass Commercial Real Estate Services represented the buyer, Sawtooth Development Group, LLC, in the acquisition of the Vanguard Building located at 63004 18th Street in Bend. The 11,354 sq. ft. industrial building on 0.84 acre sold for $1,600,000.
Compass Commercial Real Estate Services brokers Jay Lyons, SIOR, CCIM and Grant Schultz represented both the landlord, Crane Shed, LLC, and the tenant, BLRB Architects, in a lease of the 3,558 sq. ft. office suite located at 721 SW Industrial Way in Bend.
Brokers Adam Bledsoe and Dan Kemp, CCIM of Compass Commercial Real Estate Services represented both the tenant, AutoProBuys, LLC, and the landlord, Dolan NW, LLC, in the lease of a 2,698 sq. ft. retail space at the Globe Lighting building located at 63700 Clausen Drive in Bend.
Principal broker and partner, Pat Kesgard, CCIM spoke with Paul Hanson, host for the October 7th installment of the KBND Morning News Guest Interview about the Highway 97 railroad alignment. The construction of the new highway will affect many of the businesses currently lining Highway 97 and the Bend Parkway between Empire and Cooley Road.
View a map of the proposed realignment area HERE.
Listen to the full interview HERE.
Compass Commercial Real Estate Services is excited to announce Broker Tom Standish as a recipient of 2019’s Accomplished Under 40 Award. The Annual Accomplished Under 40 Awards, facilitated by Cascade Business News, recognizes young professionals who have made an impact in their communities.
Tom volunteers for Wheelers For The Wounded, which supports wounded combat veterans through organized 4X4 off-road camping trips with the goal of helping veterans reconnect to nature. As former president of his fraternity, Sigma Phi Epsilon, he has remained involved in the national fraternity since 2004 mentoring aspiring entrepreneurs and serving as alumni board president to local chapters.
Tom assists businesses and investors by navigating the sales and leasing process through ethical negotiation. He was recently involved in the sale of the Wagner Mall and Pinebrook Plaza shopping centers in Bend. Before joining Compass Commercial, he co-founded and served as CEO of a clothing manufacturing brand that sold in 2017.
We are proud to have Tom as a part of the Compass Commercial team. He inspires his fellow brokers, staff and clients by bringing his passion and contagious positivity to his work. Read more about the Accomplished Under 40 Awards and Tom’s achievements here.
Compass Commercial is pleased to announce the addition of Cathy Sechrist and Steven Meadows. Cathy will be joining the Compass Commercial Construction Services team as a Construction Services Administrator. Compass Commercial Asset & Property Management welcomes Steven Meadows to the team as a Facilities Technician.
Cathy made the move from Fremont, California to Bend in 2019, bringing over 20 years of IT business applications experience in the semi-conductor and manufacturing industries with her. She has an extensive background in construction services, supplier accounting and IT making her a fundamental asset to the team. Her current role includes construction accounting, office administration, and assisting the project managers with subcontractor agreement materials and coordinating equipment set-up.
Steven comes from a background in customer service, warehouse management, sales, and cabinetry. He brings nine years of specialty hardware experience with him to help solve problems and form solutions for contractors in the field. He is responsible for conducting inspections at numerous commercial sites and for repairing machines, equipment and property structures.
Outside of work, Cathy is traveling and photographing her adventures. She has traveled to 13 states and 16 countries, totaling to 6 continents, with a trip to Antarctica planned in 2021 marking off continent number 7. Steven can often be found spending time with his family and friends camping, hunting and fishing. He is an avid Oregon Ducks fan and likes to catch a game whenever he can.
Compass Commercial Real Estate Services is pleased to announce notable commercial transactions closed by the firm during the month of August 2019.
Joel Thomas, CCIM, Russell Huntamer, CCIM and Tom Standish, Broker of Compass Commercial Real Estate Services represented the seller, Bowler & Bowler, LLC, in the disposition of 2855 NW Crossing Drive in Bend. The 10,432 sq. ft. medical office building sold for $3,450,000. Read more about this transaction.
Broker Terry O’Neil, CCIM of Compass Commercial Real Estate Services represented the buyer, D&S Hollywood, LLC, in the acquisition of 1000 SW Indian Avenue in Redmond. The 11,304 sq. ft. office building on 0.89 acre sold for $2,400,000.
Compass Commercial Real Estate Services broker Ron Ross, CCIM brokered the sale of 1908 NW Canal Boulevard in Redmond representing the seller Canal Land Partners, LLC. The 4.01 acre parcel sold for $1,200,000.
Brokers Dan Kemp, Peter May, CCIM and Howard Friedman, CCIM of Compass Commercial Real Estate Services represented the seller, Neal Cole Properties, LLC, in the sale of 1880 NE Butler Market Road in Bend situated on 5.31 acres for $750,000.
Compass Commercial Real Estate Services brokers Terry O’Neil, CCIM and Ron Ross, CCIM represented Steven & Judith Boswell, the seller, in the disposition of 444 NE Olney in Bend. The 3,328 sq. ft. fourplex on 0.32 acre sold for $618,000.
Ron Ross, CCIM of Compass Commercial Real Estate Services and Luke Ross, Broker of Compass Commercial Asset & Property Management facilitated the sale of 61550 American Lane, Unit 1 in Bend representing the seller, Highliner Properties, LLC. The 3,025 sq. ft. industrial condo sold for $531,000.
Compass Commercial Real Estate Services brokers Dan Kemp and Peter May, CCIM represented both the seller, Tumalo Enterprises and the buyer, Chris O’Driscoll, in the sale of the location of the former El Caporal Restaurant located at 64677 Cook Avenue in Bend. The 0.50 acre parcel sold for $350,000.
Peter May, CCIM of Compass Commercial Real Estate Services represented the tenant, Miko Miko, in leasing 1,242 sq. ft. of retail space in Robal Road Village, 63450 N Highway 97 in Bend. The women’s boutique is anticipating opening by the end of September.