Partner and principal broker Howard Friedman, CCIM looks back on 2020 to provide a forecast for 2021. This year, Compass Commercial Real Estate Services celebrates its 25th year as Central Oregon’s premier commercial real estate firm. Since its founding in 1996, the company has grown from just four real estate brokers to a total of 16 with a full in-house staff, Asset & Property Management department and a Construction Services department.
Get the full summary/forecast in the Q4 Market Report.
Bend’s Office Market:
Compass Commercial surveyed 218 office buildings for the fourth quarter 2020 Bend report. The buildings in the sample totaled 2.73 million square feet. Positive net absorption of 2,546 SF was recorded during the quarter, and the vacancy rate dropped slightly, moving from 7.50% in Q3 to 7.41% in Q4. There is now 202,417 SF available for lease, down from 204,963 SF in Q3.
Bend’s Retail Market:
Compass Commercial surveyed 259 retail buildings totaling over 4.5 million square feet for the fourth quarter of 2020. The citywide vacancy rate rose for the fourth quarter in a row from 3.38% at the end of Q3 to 5.81% at the end of Q4, mainly due to one large vacancy noted in the North 97 submarket. An increase of 88,377 SF of vacancy was recorded. There is now 261,827 SF of retail space now available citywide, up from 152,798 SF in Q3.
Bend and Redmond Industrial Markets:
Compass Commercial surveyed 320 buildings for the fourth quarter 2020 industrial report, totaling 4,609,320 square feet. The industrial market gained 40,262 SF of net positive absorption in Q4 and the vacancy rate fell from 3.47% in Q3 to 2.30% in Q4. There is now 108,105 SF of industrial space available for lease in Bend, compared to 159,853 SF in Q3. All four submarkets recorded positive net absorption in Q4 2020.
The Redmond industrial market experienced 3,086 square feet of negative net absorption in the fourth quarter of 2020 for a second straight loss in occupancy. The vacancy rate rose as a result, from 3.50% to 4.30%. Out of Redmond’s industrial sector of 1,663,927 SF total leasable space, there is now 71,075 SF available for lease. There are 88 buildings in the Redmond industrial market that we tally. Four buildings recorded positive absorption and two were negative in Q4.
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.
The Old Bend Post Office was constructed by the Public Buildings Program to reduce unemployment and to stimulate the economy. Its architectural style reflects a modern and classical style with its ornamental elements on the east side of the building. The reinforced concrete construction was considered unusual for the Bend area at the time and therefore deemed luxurious by the locals. The building is listed on the National Register of Historic Places.
