Compass Commercial Real Estate Services has released its second-quarter 2016 market survey results in the most recent issue of Compass Points.
“The commercial real estate market experienced a few minor hiccups in the second quarter, due to a few new larger vacancies in the industrial and office buildings contained within our survey, but the rates are still healthy, especially compared to what we faced in 2011 and 2012,” said Howard Friedman, CCIM, a Compass Commercial partner who serves as editor for Compass Points.
Bend’s citywide office market showed positive net absorption of 8,766 square feetduring the quarter. However, despite the positive absorption, the citywide office vacancy rate increased slightly, due to the addition of a new office building to the survey at 1015 Emkay Drive. The rate rose from 6.26 percent to 6.4 percent as a result. There is now just less than 160,000 square feet available for lease, up from 155,000 square feet in Q1. This is still considered a healthy rate and certainly a welcome number, remembering the second quarter of 2012, when the vacancy was at 21.9 percent.
Bend’s industrial vacancy rate increased from 3.4 percent last quarter back up to 6.7 percent in Q2, in part due to Advanced Energy vacating its 83,000 square feet facility on Brinson Boulevard resulting in the current 281,844 square feet of industrial property available for lease, compared to the first quarter report of 141,390 available square feet. This is still down from the peak of 794,000 square feet reported in the third quarter of 2010, when the vacancy rate was 20.0 percent, so just a blip on the radar screen.
Retail vacancy in Bend dropped from a rate of 4.7 percent at the end of Q1 to 4.5 percent at the end of Q2. Four out of the seven Bend retail submarkets surveyed recorded positive net absorption, and three were negative.
Redmond’s industrial market vacancy dropped to 4.6 percent from the previous quarter’s reported rate of 4.8 percent — a drastic improvement from 2011’s report of 29.9 percent vacancy in that market.
Compass Points, a quarterly publication of Compass Commercial Real Estate Services offers comprehensive commercial real estate surveys of the Central Oregon 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 square feet.
To subscribe and receive the quarterly publication, sign up at www.compasscommercial.com/SUBSCRIBE or call 541- 383-2444.
