Bend’s commercial real estate improves

Vacancy rates fell, lease rates increased in 2014, survey shows

Bulletin staff report /

Bend’s commercial real estate market saw vacancy rates falling and lease rates increasing at the end of 2014, according to a quarterly summary by Compass Commercial Real Estate Services.

The vacancy rate for industrial property in Bend dropped from 12.3 percent at the end of 2013 to 6.7 percent a year later, Erich Schultz, principal broker with Compass Commercial, wrote in the latest issue of Compass Points. Lease rates went from 45 cents per square foot in 2013 to 65 cents for space in newer, smaller buildings in 2014.

The market for office space in Bend also improved for landlords. The vacancy rate fell from 11.3 percent in the third quarter of 2014 to 10.5 percent in the fourth, according to Compass Commercial. Lease rates today range from $1.20 per square foot to $1.70, Schultz wrote.

The vacancy rate for retail property citywide fell from 8.3 percent in the third quarter to 6.7 percent in the fourth. A total of 92,000 square feet of retail space was leased in 2014, according to the quarterly survey by Compass Commercial. Downtown Bend, at 3.16 percent, had the lowest fourth-quarter retail vacancy rate of seven market areas in the city.

In Redmond, demand for industrial space dropped the vacancy rate from 15.9 percent to 10.5 percent in the fourth quarter. Nearly 108,000 square feet was leased in Redmond, with another 154,000 square feet of industrial property still available, according to Compass Commercial.