COMPASS COMMERCIAL REPORTS RECORD LOW VACANCY RATES IN Q1 2016 MARKET SURVEY
Bend’s citywide vacancy is down in all product types reports Compass Commercial Real Estate Services in its first quarter 2016 market update, Compass Points.
According to the survey, Bend’s office, industrial and retail vacancies are at or near record lows of 6.3%, 3.4% and 4.7% respectively, while Redmond’s industrial vacancy is down to just 4.8%.
The snail’s pace at which the Bend UGB is reaching approval should be mentioned, as it invariably affects the local real estate market and Bend’s economy as a whole. “With a lack of buildable land, we have seen prices soar to pre-recession levels which will make new commercial and industrial construction projects difficult for developers to pencil,” said Howard Friedman, CCIM, principal broker and editor of the survey.
On the other hand, the report notes that developers are starting to conceive infill projects and the report highlights some of these examples including the $40.00 per sq. ft. one developer paid for commercial land on 3rd Street (with three buildings slated for tear down) to develop a 9,400 sq. ft. retail building on .71 acres. Lease rates on the project are pushing the envelope at $3.00 per sq. ft. on a triple net basis, but the development is already almost fully preleased, demonstrating the demand for new retail in the Bend market.
The Crane Shed Commons office building under construction on Industrial Way is another project with solid prospective tenants currently vying to move into the 50,000 sq. ft., four-story Class A building, where lease rates are listed at $2.25–$2.50 per sq. ft. triple net.
In northeast Bend, the former Fuqua Homes manufacturing plant has been redeveloped as the Murray Road Industrial Center which already has leased over half of the 115,000 sq. ft. project.
Compass Commercial’s Q1 2016 issue of Compass Points provides data on office, industrial and retail absorption and vacancy rates in Bend and Redmond industrial. View the complete report or sign-up to receive Compass Commercial’s monthly newsletter, the Compass Navigator including quarterly market updates at compasscommercial.com or by calling (541) 383-2444.