BEND, OR (March 6, 2015) — Compass Commercial Real Estate Services has released its 2014 market summary and fourth quarter survey results in the current issue of Compass Points.
According to the report, it is now a landlord and seller market. This is a significant shift from where the Bend market stood in recovery a short time ago when buyers and tenants held most of the cards.
Compass Points editor, Erich Schultz, SIOR notes that Bend’s market has returned to “normal” levels of activity, with the industrial product type leading the way.
“The improved economy has significantly impacted our market over this last year, especially in Bend and Redmond industrial,” said Shultz. “Our survey reports an increase in absorption across all product types. A shortage of available land and little new construction means rates will continue to rise.”
The survey reports a decrease in the citywide industrial vacancy rate from 2013’s 12.3% dropping to 6.8% by the end of 2014. Since the end of 2013, net absorption of industrial property increased from 6,998 square feet to 160,729 square feet by the end of 2014.
The Bend office market showed improvement over the past year with absorption increasing from 126,754 square feet to 143,700 square feet. Citywide, the office vacancy dropped from 16% at the end of 2013 to 10.5% by the end of 2014. The reduction in available space has caused rental rates to firm up.
Bend’s retail market showed a significant drop in vacancy, with the citywide rate dropping from 8.3% in Q3 to 6.7% by the end of Q4. That said, 2014 witnessed a respectable 92,000 square feet of absorption in the retail market.
In addition to providing a survey of Central Oregon’s Q4 2014 commercial real estate market, Compass Points offers a summary of activity throughout 2014 and presents an outlook for 2015. The issue also features regional commercial real estate related news, commentary and listings.
To view an online version or to subscribe to the quarterly publication, visit www.compasscommercial.com and click on the Compass Points icon or download the PDF here.
Headquartered in Bend, Oregon, Compass Commercial Real Estate Services is Central Oregon’s foremost-accredited provider of commercial real estate services offering solutions in sales and leasing, tenant/buyer representation, asset and property management and construction services. Visit www.compasscommercial.com or follow us on Twitter @CompassCom.