Growth and New Construction in Central Oregon:
The 2020 COVID-19 crisis caused businesses to pivot how they are operating. Those who were hit the hardest have been unable to keep their doors open. However, the Central Oregon commercial market is remaining strong with new construction popping up all over the area. What is causing this influx in demand for commercial properties? Find out in the Q3 Market Report.
Bend’s Office Market:
Compass Commercial surveyed 218 office buildings for the third quarter 2020 Bend report. The buildings in the sample totaled 2,731,655 square feet (SF). Negative net absorption of 20,557 SF was recorded during the quarter, and the vacancy rate rose to 7.50%, up from 5.48% in Q2 2020. There is now 204,963 SF available for lease, up from 145,601 SF in Q2. Get the full report for a complete breakdown of the Bend office market.
Bend’s Retail Market:
Compass Commercial surveyed 260 retail buildings totaling nearly 4,523,652 square feet (SF) for the third quarter of 2020. The citywide vacancy rate rose slightly, from 3.09% at the end of Q2 2020 to 3.38% at the end of Q3. There is currently 152,798 SF of retail space available citywide, up from 139,843 SF in Q2. Get the full report for a complete breakdown of the Bend retail market.
Bend and Redmond Industrial Markets:
Compass Commercial surveyed 320 industrial buildings for the third quarter 2020 report, totaling 4,612,306 square feet (SF). The industrial market gained a healthy 53,008 SF of net positive absorption in Q3, and the vacancy rate dropped from 3.80% in Q2 to 3.47% in Q3 2020. Four new buildings were added to the survey in Q3 and there is now 159,856 SF of industrial space available for lease in Bend, compared to 170,716 SF in Q2.
The Redmond Industrial market experienced 23,063 square feet (SF) of negative net absorption in the third quarter of 2020 with two new leases and five new vacancies noted. The vacancy rate rose to 3.50%, up from 2.10% in Q2. Out of Redmond’s industrial sector of 1,654,385 SF total leasable space, there is now 58,447 SF available for lease. There are 87 buildings in the Redmond industrial market that were surveyed.
To view the complete report, sign up to receive our quarterly publication at https://www.compasscommercial.com/POINTS or call (541) 383-2444.
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.
2019 Summary / 2020 Forecast:
A Look Into Our Economic Future:
A Primer on Restaurant Buying:
Bend’s office market showed improvement in 2018. At the end of 2017, the vacancy rate stood at 3.61%, whereas at the end of 2018 it was 3.40%. Lease rates held fairly 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 (and depending on location and quality) and $2.00–$2.35 for newly built office space. The vacancy rate has now dropped eight years in a row in the office market, dating back to the end of 2010, when vacancies were 22.1% of the total market. At that time there was over 526,000 square feet of office space available for lease, while at the end of 2018 there was just over 87,000 sq. ft. available.
In the office market 10,587 square feet of space was absorbed in 2018, compared with 71,783 sq. ft. 2017. There is now only 87,331 sq. ft. available out of a 2.57 million sq. ft. market. Absorption slowed in 2018, but remained in positive territory.