Partner and broker Pat Kesgard, CCIM sat down with KBND host Frank Bonacquistie on Monday, November 2nd to discuss the Compass Points Q3 2020 report. Despite the COVID-19 pandemic, the commercial market remains strong. Bend was recently ranked as the fastest-growing medium-sized city in the U.S. by the personal finance website Wallethub. People from urban areas, like Seattle and the Bay Area, are looking to move their businesses out of these big cities and into Central Oregon. This has caused an increase in demand for commercial properties, and therefore new construction has gone up in response. So far in 2020, 55 commercial properties have been constructed and approximately 43 properties are proposed or under construction.
The COVID-19 pandemic has made it evident that people are looking to move their businesses out of larger cities like Portland, Seattle and L.A. Central Oregon’s work-life balance capabilities make it an attractive location for these business owners. Broker Pat Kesgard, CCIM discussed what is happening in the commercial real estate market with KBND on August 3rd stating, “we’re having a hard time keeping up with the demand.”
Investors are also beginning to show interest in multifamily housing. Industries such as restaurants and retail are still up in the air as far as investments go. The good news is, most businesses are continuing to pay rent.
Read the full story on KBND’s website here.
Partner and principal broker Pat Kesgard, CCIM and KBND host Frank Bonacquisti discuss the impacts of COVID-19 on our current commercial real estate market and what landlords and tenants need to know to prepare for the future. As rules and regulations continue to change, our brokerage, property management and construction services departments continue to work diligently to stay ahead of these changes to help our clients and customers.
Listen to the full interview here.
See our COVID-19 Updates page for more information.
By Dan Kemp, CCIM
April 6, 2020
I bet you didn’t see this coming. Neither did we. How could we have?
Many warning signs were leading up to the 2008 recession about the pending mortgage crisis and the risk of recession. The vast majority of America did not see it coming, but some people did heed the warning signs and prepared. Unlike the 2008 recession, COVID-19 took the world by complete surprise. Nobody was prepared! The effects of the disease are expanding daily, and its impacts on our lives, businesses and investments are not yet quantifiable, but it is real.
Compass Commercial is learning, as we work on the front lines with both tenants and landlords, how to navigate this pandemic. The landlord/tenant relationship and the landlord/lender relationship are the foundation behind our global and local economy. This global pandemic created the need to shut down businesses, caused a steep decline in revenue and put a strain on these two important relationships. Unfortunately, at this point, there are more questions than answers.
Many tenants have healthy businesses with cash reserves who will be able to weather the storm, even if it lasts for several more months. Businesses with limited cash reserves will need financial assistance if they are going to survive. Landlords and property managers are receiving requests from both business owners who need and who don’t need the help but are still looking for relief. Many landlords are seeking relief from their lenders so they can lessen the financial burden on their tenants. Lenders, in turn, are looking to the government to provide relief and assistance so they can assist landlords.
This raises the philosophical question, who should bear the financial burden of the impacts of COVID-19? The tenant, the landlord, the lender or the government? I would suggest it is everyone’s burden to bear to some degree, and nobody comes out of this without some financial scars. Tenants, landlords and lenders who have the financial means to weather the storm on their own can do their part by not asking for help. This will provide more assistance quicker to the companies who are desperate and do not have the same ability to sustain themselves. The survival of these hard-hit businesses is in everyone’s best interest, as it is our best bet to avoid a severe recession.
Where is the silver lining in all this? Is there one? It was difficult in 2008 to see any silver lining when most people knew there was no magic pill to heal the mortgage industry; we were in for a long multi-year recovery. I do not believe we are there yet with COVID-19, and there is still hope we can get this under control in a relatively short amount of time. The federal government’s extremely aggressive response to COVID-19 involved cutting interest rates, and since the financial crisis, banks are far better capitalized.
The government just passed a two trillion-dollar stimulus aimed at helping both businesses and households bridge the gap of the shutdown. We may not avoid a recession, but these efforts will likely lessen the impact overall. If we all do our part to stay home and implement the guidelines provided by state and federal agencies, we have a better shot at flattening the curve and getting business back to normal. The next 30 – 45 days will provide a lot of answers, so stay positive.
If you are like most of us at Compass Commercial, a few weeks ago, business was booming, and working with customers took up most of your time. We have been so busy working within our business that we have had little time to work on our business. Perhaps the biggest silver lining is we have more time to work on streamlining our operations, improving internal processes, implementing new technology, developing new skills and doing some strategic planning. Let us take advantage of the lighter workflow to better serve our clientele when the faucet gets turned back on. This is maybe our opportunity to reboot and retool our businesses for the future. Although we here at Compass are making plans based on the possibilities of both a shorter and a longer recovery, we remain hopeful and optimistic that the economy will recover sooner than later.
Recap: new office, retail and industrial development or the lack thereof?
By Jay Lyons, SIOR, CCIM
March 8, 2020
Bend’s commercial real estate market is as strong as ever as evidenced by historically low vacancy rates and seemingly new commercial developments around every corner. However, new development is not distributed equally across all property types. President and broker Jay Lyons breaks down the commercial real estate market by property type and the total amount of rentable square footage. As the demand for retail, office and industrial developments increases, leasing options for tenants are changing.
By Jay Lyons, SIOR, CCIM
February 10, 2020
Searching for the right space to lease for your business? Bend’s tight commercial real estate market is ever-changing. Jay Lyons, SIOR, CCIM outlines the steps to make when searching for the right location, size, price and configuration for your company. Find out how the market is changing and when the right time to start looking is. Be ready to take the next step into your next office.
On Monday, January 6th, partner and broker Pat Kesgard spoke with Paul Hanson, host of KBND, about commercial real estate trends in Central Oregon. This interview included discussing retail malls that have recently been purchased and have a potential for redevelopment. Properties such as the former Applebee’s and Bend Bulletin Building are expected to see some redevelopment along with the former Albertsons Mall in Redmond. The Bend Central District is expected to see some new construction in office and retail as well.
To find out more about the changes coming to Central Oregon, listen to the full interview here.
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.
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.
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.