At Compass Commercial, we keep an eye on market trends in commercial real estate, but also residential real estate. One company we look to for trends and prices is the Bend local Beacon Appraisal Group, LLC. Each year, they publish a Bend SFR Median Sale Price chart for the previous 20 years (click here).
More frequently, each month, they publish the Beacon Report with much more detail about Central Oregon, prices, number of sales and much more. The market report overviews can be found here.
Central Oregon Daily’s “Supper Club” series dinner held earlier this week to discuss the current policy in the residential rental market. State representatives have passed tenant protection bill that would lift rent control and provide more protections from no-cause evictions by landlords.
Local housing industry members who shared their perspectives, included Kerri Standerwick, broker for Compass Commercial Real Estate Services, Jeanette Lockwood, GM & Property Manager with Plus Property Management and Christin Hunter, Real Estate Broker with Windermere Central Oregon Real Estate.
Watch the clip and hear their thoughts on the present market for the residential rental market.
Our team participated in a webinar last month from Brian and Alan Beaulieu at ITR Economics, providing economic insights for the coming years. In summary, the webinar presented some encouraging points. The macro economy is doing well. The oil industry is depressed. Real GDP (Gross Domestic Product) is continuing to rise.
The election results did not change their forecast significantly as ITR Economics has been consistent in their predictions well before the election. According to ITR’s models, they anticipate a slight downturn in the second half of 2018 and the first half of 2019. However, there is an estimated 14 years to prepare before a significant downturn estimated to happen in 2030. During this time, it is projected for plenty of opportunities for wealth building.
Compass Commercial broker Ron Ross shared his thoughts on how this applies to commercial real estate in Central Oregon. He stated, “It will continue to be a market with shortages. Housing, office space, and industrial space continue to be in short supply. The strong recovery being experienced in Central Oregon will continue to put enormous pressure on the supply of real estate driving prices higher, (both lease rates and property values). On the upside, it will continue to be a strong landlord and seller market. This could be a great time to sell real estate in this strong seller’s market. Rising interest rates will eventually impact the market and potentially cap rates, but lease rates should continue to rise, hopefully offsetting the rate effect.”
In a recent blog, ITR Economics reinforced that the overall outlook is good for 2017. They state, “The good news for the economy continues to come in. We have leading indicators that are going up. Corporate profits are on the rise. GDP is growing at a faster pace. Housing activity is strong and industrial activity is starting to recover.”
If you’re interested in reading more, ITR Economics recommended reading:
“Creating Competitive Advantage” by Jaynie Smith
“Prosperity in The Age of Decline: How to Lead Your Business and Preserve Wealth Through the Coming Business Cycles” by Brian Beaulieu and Alan Beaulieu
Last October, Compass Commercial Real Estate Services celebrated their 20th anniversary with a benefit event. Proceeds were donated to local nonprofits Bethlehem Inn and Shepherd’s House Ministries. More than $5,000 was raised for each organization for this year at the event. In addition, Compass Commercial promised an additional $2,500 to be gifted to each over the next two years. The money given to Bethlehem Inn went toward the capital campaign to build their new 18,580 square foot facility.
Bethlehem Inn currently has commitments toward their capital campaign and will continue to raise funds until they meet their $4.5 million dollar benchmark. Compass Commercial’s partner and principal broker, Howard Friedman, CCIM has volunteered for Bethlehem Inn for over 10 years as a food preparer and server. He has served for six years on the facility rebuild committee. He joined the Board of Directors in 2016 and is currently serving as vice president.
About Bethlehem Inn
Bethlehem Inn of Bend is a nonprofit supporting individuals and families who find themselves in need of shelter, meals and community resources. They work as an emergency shelter, but also offer meals and case management services for adults and children in Central Oregon. Like many nonprofits, they rely financially on donations from the community as well as some grants from both the government and private foundations. Click here if you would like to donate. Find out more about plans for the new building here.
We are pleased to announce the sale of the former Mount Bachelor Academy facility. The transaction closed on November 29, 2016 with a transaction value of $950,000. Brokers Jay Lyons, CCIM and Graham Dent along with Jay Sholl of CBRE represented the seller in the sale of the 53.3 acre location that is 27 miles northeast of Prineville, in the Ochoco National Forest.
The property holds 40 buildings, including cabins, dormitories, lodges, a kitchen, a large six-bedroom home, a pool and a newly constructed gym. The facility was originally built for and functioned as a boarding school, however, it is a great space for a camp or resort with plenty of housing and activities on-site. The national forest surrounds the property.
We are pleased to announce the sale of the former Mount Bachelor Academy facility. The transaction closed on November 29, 2016 with a transaction value of $950,000. Brokers Jay Lyons, CCIM and Graham Dent along with Jay Sholl of CBRE represented the seller in the sale of the 53.3 acre location that is 27 miles northeast of…
This week while participating in the Coastal Caucus Summit in North Bend, Business Oregon announced the launch of its new Rural Entrepreneurship Development Initiative (REDI), a public-private partnership to increase entrepreneurship in rural areas of the state.
“Oregon small businesses are the backbone of a thriving Oregon economy,” said Oregon Governor Kate Brown. “The Rural Entrepreneurship Development Initiative is an exciting new opportunity to leverage the skills and resources of innovative, local entrepreneurs and grow rural Oregon economies.”
The two-year-long 27th Street Sewer Line project kicks off Monday, starting with up to eight weeks of night work and detours near the Highway 20 intersection.
Nearly two miles of pipe will be installed along 27th Street between Reed Market Road and Medical Center Drive. The sewer line installation is expected to take 18 months with a complete road resurfacing to follow.
“The City’s sewer collection system is at capacity in some areas,” said Project Manager Eric Forster. “The 27th Street sewer line is part of a longer project that will help relieve sewer capacity issues all over town and will also make sewer service available to some areas that are currently on septic systems.”
Starting Monday, August 8, 2016, the 27th Street northbound lanes (and occasionally southbound lanes) between Twin Knolls Drive and Grand Way, will be closed for sewer line installation between 7 p.m. and 6:30 a.m., with detours marked, for up to eight weeks. Highway 20 will remain open east and westbound across 27th Street during this work.
Later in 2016, 27th Street south of Bear Creek Road and north of Reed Market Road will be restricted to only the southbound lane. The northbound lane will be closed. This closure is expected to last at least one year. The planned detour for this section will reroute northbound traffic on 27th Street to go west on Reed Market Road, then north on 15th Street to U.S. Highway 20.
Access to homes, medical facilities, and businesses will be maintained for residents, employees, customers and emergency services. And, to accommodate the holiday shopping season, construction will pause in the business area of 27th Street, between Forum Drive and Twin Knolls Drive, from November 15, 2016 to January 3, 2017.
“We ask that travelers give themselves extra time, practice patience and use other routes when possible,” Forster said.
Visit www.bendoregon.gov/SEI for up-to-date project information.
Summers in Bend are amazing! Of course, the plethora of activities that routinely take place throughout the city is a trade-off with the increase in tourist traffic and event related road closures. This weekend Bend Summer Festival kicks-off on Friday night and the Tour des Chutes (a fundraiser for St. Charles Cancer Survivorship Programs and Pediatric Foundation) runs through the day on Saturday. The cycle route uses 18 miles of the Sisters-Smith Rock State Scenic Bikeway before making its way back to Bend.
Take note of the closures and traffic updates from the City of Bend below:
Special Events
July 8 – 10, Bend Summer Festival
Summers in Bend are amazing! Of course, the plethora of activities that routinely take place throughout the city is a trade-off with the increase in tourist traffic and event related road closures. This weekend Bend Summer Festival kicks-off on Friday night and the Tour des Chutes (a fundraiser for St. Charles Cancer Survivorship Programs and Pediatric Foundation) runs through the day on Saturday. The cycle route uses 18 miles of the Sisters-Smith Rock State Scenic Bikeway before making its way back to Bend.
July 9, Tour Deschutes, from 5 a.m. – 6 p.m.
Starting and finishing at High Lakes Middle School. Use caution around bikers and runners.
Upcoming Closures:
There’s more information on upcoming and ongoing closures from the City of Bend HERE.
The City of Bend continues to focus on diversifying its economic foundation through investment in infrastructure and new urbanism. This includes seeking input from the business community to help improve critical processes during start-up or expansion phases. One example of this is the support offered to business owners through Bend’s Business Advocate, Ben Hemson. A city employee, Ben works with the business community to help move critical processes forward, such as the city’s application and permit-review process as well as other issues businesses face during start-up or expansion mode.
Compass Commercial recently asked Ben to tell us more about his role as the City of Bend’s new Business Advocate and he answers some of our questions below.
Helpful Tip: If you’re a business in start-up mode or planning an expansion in Bend, Ben’s number is one you’ll want in your speed dial.
Compass Commercial: How does your role with the city as the Bend Business Advocate differentiate from EDCO’s role in economic development?
Ben Hemson: EDCO works to help traded sector companies start here in Central Oregon, move here, or grow here. That can mean recruiting, fostering the development of industry clusters, or plugging business owners into incentives.
While my role involves plenty of interaction with EDCO and their Bend Manager, Tom Rowley, my focus is on how businesses are engaging with the City of Bend. This can include helping businesses work through their permitting process, finding the correct contact or info at the city, or making the right hand-off to one of the other great business support organizations we have in town.
CC: What types of business issues do you help mitigate?
BH: It has been a varied list of issues during my first six months — everything from sign codes to building permitting, to special events and sewer rates. There are two components to the issues I work on: The first is helping businesses navigate existing regulation and processes. That can mean finding clarification on city code, checking in on the status of a permit application, or making sure a business is put in touch with the right person to answer your question.
The second involves engaging the business community in policy discussions and other City regulatory conversations that may affect them. Business registration holders with a valid email address receive at least one update a month from me on what’s going on at City Hall that may be of interest on a broad scale. When an issue comes up that might impact a small segment of the business community, whether it’s a specific policy or a road closure, my work involves reaching out to the affected group to help moderate the situation.
CC: At what stage of business are the people who contact you and what are they typically inquiring about?
BH: All across the spectrum, from startups to large local or regional companies.
Bend has a strong community of entrepreneurs. I get a lot of calls from people that are starting a business for the first time and aren’t sure what requirements they need to meet. Those requirements typically aren’t housed solely at the city, there are often contacts at the state or county level with the information they need, but I’m a good starting point.
It shouldn’t come as a surprise that I also hear from people looking to move to Bend with an existing business or plans for starting a new one. This is a great place to live and work!
CC: Tax breaks in enterprise zones are geared toward larger traded sector operations. Are there any incentives for smaller businesses to open shop in Bend?
BH: Oregon isn’t awash in economic development incentives and many that are available are seeking to leverage the limited dollars into as many new jobs as possible. For a small business that isn’t planning any large expansions, there are ways to think outside the box, the Energy Trust of Oregon provides incentives for energy efficiency that can make the payback short or nonexistent.
Once a smaller business is ready to make an investment in expansion or undergo a round of hiring they should get in touch with our office. Don’t miss out on an incentive that could have been available, many can’t be filed retroactively. EDCO maintains a great list here.
CC: What due diligence is important for businesses to conduct before deciding on a location for their business?
BH: Be sure you have a good idea of the zoning and system development charge implications for your location. If you’ve picked a location zoned industrial that will generate significant business traffic you could be in for a surprise when a hefty bill for transportation system development charges arrives.
In that same vein, once you do have a location selected and are planning out your tenant improvements develop a realistic timeline that takes into account the planning and permitting schedule. The City of Bend’s Community Development Department is dealing with an unprecedented workload right now as the economy grows, but they are tracking average turnaround times to help with planning.
CC: Any other things you’d like business owners to know?
BH: I’m here to be a resource, but also to develop communications and information that the business community finds useful. If you have questions or feedback please get in touch.
Source: Portland Business Journal
June 30, 2016
Erik Siemers, managing editor of the Portland Business Journal.
The U.S. Conference of Mayors last week released a new economic report showing how the country’s cities and metro areas are driving economic growth.
In particular, the study showed that metro areas accounted for 96.5 percent of all new U.S. Jobs last year — the highest mark in 16 years.
As the Business Journal highlights the region’s biggest employers in this week’s print edition, the graphic below takes a look at some of the most interesting data from the USCM report.
