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BEND, OR -- The Groundhog may have predicted six more weeks of winter, but issues associated with this year’s extreme weather will last much longer. Jay Lyons, with Compass Commercial Real Estate in Bend, says roof collapses and massive snow removal efforts are just the beginning. "When things are frozen, you might not see some water damage or leaks in the roof. And then, when it starts to thaw is when ceiling tiles in the building start to show water damage or water intrusion starts to become apparent. It’s definitely not over, it’s just kind of working through the issues as they present themselves."


Lyons says costs associated with the season range from lost productivity to actual structural damage. "We had a few properties that had to be evacuated because there were some concerns. And, then obviously there were some properties that we’re associated with – Ray’s, for instance – where the roof did collapse. It was a very difficult time for our property management department."
And, property owners are also experiencing "sticker shock" over mounting bills from clearing parking lots during some of the biggest storms. "We had fairly mild winters leading up to this winter. For instance, we had one property that budgeted a few thousand dollars for snow removal," Lyons tells KBND News, "And, in the last month alone, their snow removal bill was $35,000. With most lease structures in Bend, they’re triple net leases. I guess the easiest way to describe that is the operating cost of the property gets passed back through to the tenants." He says good property managers and building owners will warn tenants of the financial fallout. Some will include the additional cost in a revised monthly lease; others will bill the tenant at the end of the year. 
To hear our full confersation with Jay Lyons, visit our Podcast Page or click HERE

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