Bend commercial vacancies continue to fall


Market tightens for businesses seeking to lease or buy space.

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[Pat Kesgard, with Compass Commercial] tells KBND News he expects that trend to continue in 2016. “We’re going to see new buildings; we’re going to see redevelopment. We have some companies that have survived this downturn, that now are growing, and some of these companies are traded sector, where we ship their product outside of Central Oregon. And, they’re stepping up in the size of production or warehouse facilities. So, consequently we see this continuing at this point.” He adds, “If you own a business and you want to look at buying, again, that’s starting to get very tight. On the other side, if you’re a landlord, your rates can be higher. If you’re a landlord and you want to sell, or you want to sell your business, now would be a very good time.” That growth is resulting in less available space and higher lease rates, which he says is good for landlords not locked into recession-era rates.

According to the latest statistics gathered by Compass Commercial, Office vacancies fell from 7.4% in the Third Quarter to 6.8% in the Fourth; industrial vacancies fell from 6.3% to 5.9% in Q4 and Retail saw the biggest decline, from 6.4% to 5.2%.

(READ MORE: KBND)

A shortage of commercial space is only one of the real estate challenges facing Bend. Tom Kemper, executive director of Housing Works, the housing authority for Central Oregon, weighs in on the city’s affordable housing problem in this month’s Spotlight article, “No Magic Wand.” 

 

 

 


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