High Desert Industrial Park on the Rise


(High Desert Industrial Park | Photo courtesy of Fratzke Commercial Real Estate)

One of Bend’s newest commercial projects, the 7.25-acre High Desert Industrial Park, off NE Fourth Street, is being warmly received, with marketing agents reporting brisk leasing activity in the context of relatively scarce inventory locally for high-quality flex space.

When complete, the emerging centrally located complex south of Butler Market Road, across from Bigfoot Beverages, will feature seven modern custom-designed buildings offering Class A industrial space totaling over 127,000 sq. ft.

Three buildings are already in place, with a fourth slated to come online this summer. Flexible floor plans can accommodate suite sizes from 3,500 sq. ft up to 26,000 for an entire building, while grade level and dock-high loading bays are also available.

The project was designed by Bend-based Steele Associates Architects and the General Contractor is Dominion Construction, out of West Linn, Oregon.

Lead Broker Collier Ehlers, with listing agent group Fratzke Commercial Real Estate Advisors, Inc., said demand has been strong since the space was introduced to the market, and all the available move-in space to date has been rented. Additionally, pre-lease commitments were being made for the next building to come on stream, with proposals being submitted even before the granting of a Certificate of Occupancy.

Tenants already occupying space include EO Media Group, which distributes the Bend Bulletin, regionally based flooring specialist T & A Supply and AndreasSeedOils, an “organic producer of cold-pressed health boosting seed oils to detoxify and nourish the body.”

Ehlers said the Salem-based group, which has held the site’s land for some 16 years, decided to green light the project around two years ago, after seeing historically low vacancy in Bend’s industrial sector, together with new highs for lease rates.

A number of other factors have seen the evolving complex command premium rents, including buildings being constructed with maximum feasible height that can accommodate mezzanine levels and trucks, voluminous use of windows to allow plenty of natural light and the availability of 3-Phase electrical service.

The industrial park has been designed so that sidewalks are flush with parking areas to provide flexibility in the placement of loading zones and garage doors, while the campus is being fully landscaped and includes bicycle parking.

Ehlers commented, “In the early stages we sat down as part of the conceptual team giving input on what features should be included to maximize appeal and attract a diverse group of tenants.

“So, as well as the property intrinsically having excellent visibility, north-south connectivity and access, we have amenities like dock-high loading capability, ample turnaround radius for 53-foot trucks, plenty of paved parking and a clear-span building style so users can customize interior floor plan requirements to their individual needs.”

Ehlers added that the suites were well-suited to high-profile industrial businesses, with retail showroom opportunities, and the buildings were constructed to high standards, including CMU and steel frame construction, steel roofs and siding, generous masonry and wainscoting.

He said, “I am excited to lead the leasing activities of such a wonderful and timely project and to work with the developers to bring much-needed quality industrial space to Bend.”

Figures for 2019 showed vacancy rates in the Bend industrial market fell to just 1.58 percent, with just over 70,000 sq. ft. of industrial space available for lease — prior to the introduction of High Desert Industrial Park — representing only a six-month supply of available leasable space at the current rate of activity.

By comparison, Fratzke Commercial Principal Brian Fratzke noted that in 2013, Bend’s industrial landlords had 2.1 million square feet available.

He said the latest project, which has a construction value of around $17 million, not counting tenant improvements, was the first new industrial park in Bend in six years. The last to open was Murray Road Industrial Center, which his company was also involved with.

He said, “Historically low vacancy rates, together with high lease rates, are a trigger for new development, and we have seen strong interest even while this project was in its early construction stages, so we feel the market is responding to a pent-up demand for such new spec space.”


Collier Ehlers, collier@fratcommercial.com

Brian Fratzke, CCIM; brian@fratcommercial.com


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Simon Mather — CBN Feature Writer

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