Year-End Summary & Forecast in the Latest Issue of Compass Points
Compass Commercial Real Estate Services announces the release of its fourth quarter 2015 market update including a year-end summary and 2016 forecast in the current issue of Compass Points.
The survey indicates a dramatic decrease in vacancies year-over-year across all four sectors in Bend.
Vacancy rates of office, industrial and retail properties in Bend, as well as industrial in Redmond have plummeted to single digits, a far cry from five to six years ago when vacancy rates were in the 20 -30 percent range.
Bend’s citywide industrial vacancy rates dropped from 6.8 percent to 5.9 percent over the course of the year. Rental rates have continued to increase, with $0.55 –$0.65 per sq. ft. per month (NNN) being the norm, and up to $0.85 – $1.00 for some industrial properties with showrooms or higher percentages of office space.
The office market took a huge step forward in Bend in 2015. At the end of 2014, the vacancy rate stood at 10.5 percent, and today it stands at just 6.8 percent. In 2014, office rates were at $1.20 – $1.50 per sq. ft. per month (NNN), but those rates have since increased with some new projects advertising $2.25 per sq. ft. (NNN) or more. One of those projects is Crane Shed Commons, a 50,000 square foot, 4-story Class A office building soon to break ground on SW Industrial Way, at the site of the former historic mill Crane Shed building.
Retail vacancy in Bend dropped from a rate of 6.7 percent at the end of 2014 to 5.2 percent at the end of 2015. Rental rates are increasing accordingly, and some new retail projects are in the planning stages, with rates expected to climb well above the $2.00 (NNN) range.
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 square foot.
Download the Q4 2015 market report and sign-up to receive Compass Commercial’s monthly newsletter, the Compass Navigator including quarterly market updates at compasscommercial.com or by calling 541-383-2444.
