BEND, OR, February 8, 2016 — Compass Commercial Real Estate Services announces the release of its fourth quarter 2015 market update including a year-end summary and 2016 forecast in the current issue of Compass Points.
The survey indicates a dramatic decrease in vacancies year-over-year across all four sectors in Bend.
Vacancy rates of office, industrial and retail properties in Bend, as well as industrial in Redmond have plummeted to single digits, a far cry from five to six years ago when vacancy rates were in the 20%- 30% range.
Bend’s citywide industrial vacancy rates dropped from 6.8% to 5.9% over the course of the year. Rental rates have continued to increase, with $0.55 –$0.65 per sq. ft. per month (NNN) being the norm, and up to $0.85 – $1.00 for some industrial properties with showrooms or higher percentages of office space.
The office market took a huge step forward in Bend in 2015. At the end of 2014, the vacancy rate stood at 10.5%, and today, it stands at just 6.8%. In 2014, office rates were at $1.20 – $1.50 per sq. ft. per month (NNN), but those rates have since increased, with some new projects advertising $2.25 per sq. ft. (NNN) or more. One of those projects is Crane Shed Commons, a 50,000 sq. ft. 4-story Class A office building soon to break ground on SW Industrial Way, at the site of the former historic mill Crane Shed building.
Retail vacancy in Bend dropped from a rate of 6.7% at the end of 2014 to 5.2% at the end of 2015. Rental rates are increasing accordingly, and some new retail projects are in the planning stages, with rates expected to climb well above the $2.00 (NNN) range.
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.
Download the Q4 2015 market report and 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.
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.