The Bend OR Commercial Real Estate Market Has Limited Inventory
The latest census predicts that the population of Bend will be 130,000 by 2030. With just under 95,000 people currently residing in the city limits, and just 2,380 acres recently added to the Urban Growth Boundary (UGB), new density philosophies will certainly be needed to accommodate this growth.
Bend Planners have identified a handful of “Opportunity Areas” throughout the city. Several of these, The Old Mill Korpine property, the east Greenwood District and the Bend Central District (BCD) are currently being considered by the city to become urban renewal areas, and promise to drastically alter the face of this once sleepy logging town.
The BCD is gaining the most traction. Brooks Resources recently purchased 1.76 acres between Franklin and Emerson, the former Murray and Holt Auto dealership, with the hopes of jumpstarting the BCD’s urban renewal process. Some concepts have been considered as possible rezones such as a mixed-use residential or mixed-use office project. With building heights potentially being 65-85 feet, this opens up a lot of possibilities for developers to add density to the central part of town and improve the core district.
Bend Commercial Real Estate Data for Third Quarter 2018:
Bend Office Market:
All 3 Submarkets -
- Downtown 1.9% vacancy
- Highway 97/3rd 2.2% vacancy
- Westside 5% vacancy
The Westside vacancy rate is more due to new inventory/new construction that has come to the market. There are currently 70,552 square feet available on Bend's westside For Lease down from 74,050 square feet 2nd quarter. The times have changed....from 2009-2013 Bend had over 2,576,421 square feet of office space available!!
Bend Retail Market:
The first thing to understand and realize is that Bend’s Old Mill District is 100% LEASED! This is the first time since inception that Bend’s Old Mill is fully leased.
- South Hwy 97 has 5.1% vacancy…as the retail hub moves north and path of progress follows-like South Redmond. There will historically be higher vacancy in this corridor.
- Central 97 Business Third (core business central district) -2.1% vacancy
- North 97- 2.4% vacancy
- East Side-1.1% vacancy
- West Side-5.6% vacancy …there is 29,237 square feet of retail space available on Bend’s westside
- Old Mill District (fully leased-see above)
- Downtown-With the vacancy of Umpqua Bank on Wall Street, downtown shows 2.2% vacancy which is a rarity in downtown Bend.
Bend Industrial Market:
The Industrial Market is red hot and was one of the fastest markets to turn around after the recession. Since Bend does not have enough Industrial zoned property/supply and demand. Industrial Flex rates are as high as $0.85/sq.ft. NNN (Triple Net which means Landlord/Lessor passes all expenses back to the tenants in a prorate share).
- Southeast Bend 1.7% vacancy
- Northeast-North Brinson/Basalt/Empire/Boyd Acres area: 0.7% vacancy
- Central District (off 3rd street) 2.1%
- Westside-0% vacancy
Original blog can be seen at Bend Premier Real Estate's blog page.