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Redmond is in Demand

Redmond is in Demand

Redmond is in Demand

Even in the middle of a pandemic, Redmond is in high demand for industrial property. According to the most recent market report from Compass Commercial Real Estate, out of Redmond’s industrial sector of 1,654,385 square feet total leasable space, there is now just 35,384 SF available for lease, which amounts to a nine month supply at current leasing activity levels.

Redmond’s current vacancy rate is 2.1 %. in the 2nd quarter. Despite adding 50,000 more square feet of industrial space, Redmond’s average vacancy rate remains at just under 2% year to date. While the Pointsreport indicates a very low inventory of industrial space, Redmond's availability is gaining ground by adding new buildings; however, this is very short-lived. Current demand is anticipated to outstrip supply unless more buildings are constructed.

The current industrial space lease rates are $0.60 -$0.85/SF NNN (Triple-net).

Interest in Redmond is not slowing down. Even Redmond’s commercial and residential development is also not showing any signs of trending toward national economic indicators.  People are investing in Central Oregon as much as ever.  Evidence of this is shown by the increase in building permit activity in 2020 being up 14% over 2019.

Reflections of Redmond’s Recent Economic Development Activity.

Redmond is in demand. The work at REDI has not slowed down with the pandemic. In fact in recent weeks, REDI has shown more land and buildings than ever before and 6 new projects have been added to the pipeline.

Currently, out of the 35 projects REDI has in the pipeline, 18 of those are considered “HOT.” This is atypical as usually only a handful at a time are very active. With all the demand for more industrial space from businesses, REDI is working with local and out of the area developers to deliver 8-10 new buildings and hopefully a future industrial park.

Redmond continues to grow and thrive with local businesses. Several REDI members have some notable expansions and developments:

  • Poltex expanded by taking additional space in their present building. The company fabricates custom organizational equipment for laboratories, hospitals, and individuals.
  • Risse Racing expanded their operations, doubling their space to 8,000 square feet, now on Second Qt.
  • Expion360 creates CPAP lithium batteries and is nearing completion on its 14,976 square foot building.
  • Healthcare product manufacturer Medline ReNewal has plans to expand its facility by approximately 52,674 square feet.
  • BasX Solutions, a manufacturer of custom engineered products, is looking to expand its operations by another 10,000 square feet. 

As businesses continue to move and expand in our area, workforce availability has improved. Pre-COVID numbers showed there were 1,500 jobs unfilled in the traded sector.

The job market is very active right now and employers are looking to fill positions. Consumer Cellular recently announced it has 350 jobs to fill.

Ways to Support Business Development Needs in Redmond

As the business landscape continues to change, now is the time to work together for economic development opportunities. This includes supporting state investments in economic development through the lottery and general fund; providing for the sustainability of existing state programs like e-zones and the Infrastructure and Strategic Reserve Funds;  and supporting state and local programs which promote primary sector job creation.

As stated earlier Redmond needs more land and industrial parks for expanding businesses which includes speculative space and one acre parcels.

Above all, a great way to show your support and help local businesses thrive is investing in REDI.