(Downtown Redmond | Photo by Cascade Business News)
You might be surprised to hear that according to an October 17 Bloomberg report, Iceberg lettuce is no longer “head of the class.” It has been replaced by Romain leaf lettuce as the most preferred among Americans. 2020 will be remembered as the year of surprise and change.
At this writing, there still could be a legendary “October Surprise” changing the course of an election year. Earlier, there was the surprise of COVID that has led to significant changes in the local economy.
Most business across the Nation and in Central Oregon have been affected by 2020 surprises. Some noteworthy examples on a National level include:
- Instacart announced recently it plans to hire a whopping 300,000 additional full-time shoppers over the next three months to meet the increased demand.
- Amazon similarly said it will hire 100,000 full and part-time positions at fulfillment centers and delivery networks across the U.S.
- One restaurant owner in New York says, “I’m not letting people in the restaurant. We keep the door locked, we go to the door and we give them their food from behind the door with gloves on.” She added, “Same thing with our delivery app drivers. We’re not letting them in, they are showing us their phone through the window.”
- Nationally, commercial vacancy rates are around 15 percent. Retail vacancy is at 35 percent and industrial and office vacancies are around eight percent.
The report on a local level is similarly mixed. One pizza restaurant owner in Sisters reports a better August than last year due to their online ordering and payment system with curbside pickup. Central Oregon still has businesses struggling to recover that might have closed permanently if not for PPP that provided funds for payroll and rent. On the other hand, there are many business planning or in the midst of growth and expansion.
Focus on Redmond
Redmond, in the big picture, is a success story with its own set of surprises and changes. Examples include:
- BasX, located in the old Redmond Walmart store, broke ground this summer on a 75,000-square-foot high-bay manufacturing center.
- Medline Renewal, a medical device reprocessing facility, is underway with a 52,000+-square-foot expansion on Northeast Hemlock Avenue, doubling its space with plans to add over 100 new employees.
- Home sales in Redmond in September 2019 were 88 and in September 2020 were 115. Days on market in August 2019 was 81 and in August 2020 was 13.
- Redmond building permits are up 14 percent over 2019 and despite adding 50,000 more square feet of industrial space, commercial vacancy rates hover at a historic low of two percent.
Change during 2020 has not escaped the notice of Central Oregon residents and businesses. The surprise is that the change has been counter cyclical as we climb out of the Corona-caused downturn. Investors are paying attention, traded sector business are on the hunt for new and expanded facilities, workers have or soon will have expanded options for family wage jobs and local support services will experience the rising tide of prosperity.
Bruce Barrett is a commercial real estate broker with Windermere Commercial. He can be reached at barrettrealestate@gmail.com.
