Duke Warner, as noted in the April 15 issue, is exuberant about the real estate market. They report that the first quarter of 2015 ended with a bang. The statistics that March realized point to an incredibly robust marketplace. Gains were represented across the board.
People who were once holding onto their homes are now able to sell them due to the rapid increase in value. March saw a 40 percent increase from February in properties new to the market in the Bend area and between February and March there was 40 percent increase in the $225,100-$325,000 price range and the $325,100-$425,000 price range saw an almost 70 percent increase.
According to Compass Commercial Real Estate Services the Bend office market showed that the vacancy had dropped from 16 percent at the end of 2013 to 10.5 percent by the end of 2014.
Bend’s retail market also showed a significant drop in vacancy with the citywide rate dropping from 8.3 percent in Q3 to 6.7 percent by the end of Q4. In fact the retail/restaurant spaces in the Bend downtown district have a 96 percent occupancy rate. When one business leases it is almost immediately occupied by another new retailer or restaurant.
In Redmond Compass Commercial Real Estate Services reports that Frank’s Landing shopping center on the way to the airport is now 100 percent leased with the industrial area’s vacancy dropping and rates going up. A flurry of activity caused Redmond’s vacancy rate to drop from 15.9 to 10.5 percent.
Good news happened in Madras when the Bean Foundation, a nonprofit organization dedicated to bettering Jefferson County and Madras, purchased Yarrow from Madras Land Development Company LLC, a wholly owned subsidiary of Brooks Resources Corporation. The purchase includes 49 developed lots and 20 acres of bare land remaining in the master-planned community.
With renewed interests in the Madras housing market Brooks Resources will remain involved as needed through the end of 2016 to manage the architectural review process for the neighborhood.
While inventories are down, many realty professionals in downtown Sisters’ firms see colorful opportunities for home and commercial property sales.
Stability in the residential market has been creeping into the equation over the past year, especially in the $200,000 to $400,000 price range, bolstered by low interest rates.
Commercial real estate has rebounded from its post-recession doldrums. Leased spaces are filling up, the downtown commercial area has had a huge facelift and new businesses are coming. In MLS alone, nine commercial buildings sold in the last two years and there are only five for sale now.
After such a challenging and disappointing real estate market in recent years it’s reassuring to see a robust construction industry, especially in housing. The image can’t be told any better than in NorthWest Crossing where the environmentally-sustainable mixed-use development now boasts 920 homesites sold, 50 acres of parkland created and all 80 business locations occupied. At the foot of NorthWest Crossing is the Shevlin Health & Wellness Center, the westside’s answer to a convenient medical center with a variety of healthcare providers.
Central Oregon’s real estate market is benefitting from positive economic indicators with more capital available, real disposable income rising, net worth rebounding and interest rates remaining low.
However, as we were wisely advised in the last Economic Outlook issue for Cascade Business News —
Enjoy the upswing in our economy, it is a great opportunity to revitalize and strengthen our region but ‘never forget.’ Invest and operate with reason and sound analysis and the cycles can be enjoyed and endured ~ Andie Edmonds, CCIM of NAI ARIS.
This is an important time to pay attention to what is happening to future development, especially in Bend where we are running out of inventory in all sectors while demand continues to increase. The Urban Growth Boundary (UGB) is still, after far too many years, under discussion and the increase in construction and governmental fees to develop new construction or to redevelop existing structures is always a concern.
Brian E. Fratzke, CCIM, Principal Broker of Fratzke Commercial points out that many dedicated individuals in the public and private sector are working hard to expand the UGB. “Our concern is that no new commercially or residentially zoned land will be brought into the UGB until 2020. And this land will not be entitled nor will it be serviced by utilities, roads and the infrastructure needed to develop the land for several years.”
I agree with Brian that we need to embrace change, accept that our community is going to grow and manage it effectively. AND get involved.
The City Club of Central Oregon will feature another forum on Bend’s UGB on April 16…the good and bad news is that the forum is completely sold out (although you can view it on the city club website), indicating that our community has a clear interest in working on our challenges.
