Last quarter we wrote about the Bend UGB expansion and how the different land-use zones fit into the big picture. One of those zones, IL (Light Industrial), is undergoing a big change on Bend’s west side, which will have significant impacts on values and use, both for residential and commercial applications.
Bend’s citywide office market recorded a negative net absorption of 1,406 sq. ft. during the quarter. The vacancy rate rose slightly, from 3.67% to 3.73% as a result. We now have 93,468 sq. ft. available for lease, up from 92,062 sq. ft. in Q1 2017. Even with this slight uptick, it still represents the second lowest office vacancy rate since Compass’ brokers began tracking vacancies in 1996.
In addition, the Bend retail market was represented by 253 retail buildings totaling nearly 4,450,000 square feet for the second quarter of 2017. The citywide vacancy rate fell once again, from 3.21% to 3.15% at the end of Q2 due to a total of 2,711 sq. ft. of positive absorption.
The industrial market in Bend gained another 51,700 sq. ft. of positive net absorption in Q2, however, due to an addition of 70,000 sq. ft. building in the northeast submarket, the results show an increased vacancy rate, from Q1’s 4.63% to 4.99% in Q2. Without the addition of the new structure, the absorption would have been a net negative 18,300 sq. ft.
For the first time since the second quarter of 2014, the vacancy rate rose in Redmond’s 1.52 million square foot, 78 building industrial market.
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