BEND, OR -- Commercial real estate in Central Oregon mirrors the tight housing market in the region, forcing some businesses to take a hard look at their building lease agreements. Pat Kesgard, with Compass Commercial Real Estate in Bend, says tenants looking to move need to prepare for a tough road ahead, "Particularly, when you talk about industrial, or even retail, because there are not a lot of options out there."
Bend Commercial Vacancy Rates End 2016 at Near-Record Lows.
Kesgard tells KBND News it's difficult but not impossible to find space. "You always have turnover. You have companies that are buying their own buildings, building their own buildings; companies are buying other companies or absorbing other companies, moving in the space they’ve got." And, those who are able to make a move should be ready to pay more. "Rates have gone up, in some cases 100%," says Kesgard. "During the recession, companies were struggling, they go to the landlord; a lot of the landlords capitulated and said, ‘I’ll cut your rent.’ Now, we’re seeing rates $0.60 to $0.80 a square foot, plus the triple net expenses. It’s changing dramatically."
He advises tenants to keep track of their agreement so they aren't surprised when it expires. "You have to understand your lease; you have to start paying attention. Call your broker, and start seeing what your options are; talk to your banker, talk to your CPA." He suggests starting the search for a new location as early as six to eight months in advance.
For more suggestions for landlords and tenants in the current commercial real estate climate, click HERE to listen to our full conversation with Pat Kesgard, or visit our Podcast Page.