Compass Commercial Real Estate Services has released its fourth-quarter 2017 market survey results with the 2017 summary / 2018 forecast for Bend’s office, retail and industrial and Redmond’s industrial market, included in this most recent issue of Compass Points.
Here’s an excerpt from the main article:
“SUMMARIZING the 2017 Market
For the year, the Bend office market showed improvement. At the end of 2016, the vacancy rate was 4.61%; at the end of 2017 it was 3.61%. Lease rates held steady in the office market, with spaces being leased for $1.50 – $2.00 per square foot per month triple net (NNN) for existing units (depending on location and quality), and $2.00 – $2.35 for newly built office space. The office vacancy rate has now dropped seven years in a row. Dating back to the end of 2010, when vacancies were 22.1% of the total market, there was over 526,000 sq. ft. of office space available for lease, while at the end of 2017 there was just under 92,000 sq. ft.
Retail vacancies in Bend also dropped from 3.9% at the end of 2016 to just 2.8% at the end of 2017, having dipped even further in Q3 to 2.6%. Once again this is the lowest rate we have reported since beginning our retail survey in 2008. Rental rates held strong in 2017 due to limited supply, with rents in the $1.50 – $2.00 NNN per sq. ft. range, and restaurants and new retail projects climbed further in the $2.00 – $2.75 range or higher.
Bend’s overall industrial vacancy rate dropped again for the fourth year in a row, from 4.9% to 3.26%. Rental rates rose to between $0.65 and $0.85 per sq. ft. NNN in 2017, and some higher quality spaces commanded as much as $1.25 per sq. ft.
In Redmond, industrial rates dropped again for the sixth year in a row from 3.7% at the end of 2016 to 3.5% at the close of 2017. In 2011, the vacancy rate was 27.8%!”
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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.