Bend’s Industrial Vacancy Hits 2% — Driving New Flex Space Construction Across Central Oregon

Bend’s industrial real estate market has reached such tight capacity that vacancy rates have dropped to approximately 2%, prompting a wave of new flex industrial park construction across Central Oregon to accommodate the region’s growing roster of craft beverage producers, outdoor gear manufacturers, logistics firms, and small-scale manufacturers. The Red Barn Industrial Center in neighboring Redmond — strategically positioned to serve the broader Bend market — expanded in late 2023 and continues planning additional phases that will add tens of thousands of square feet of flexible warehouse and office space to the regional inventory.

Within Bend city limits additional light industrial buildings and business parks are under construction to meet sustained demand from the region’s distinctive manufacturing economy, which blends Central Oregon’s outdoor recreation industry, craft food and beverage producers, and growing logistics needs into a unique industrial ecosystem unlike anything else in Oregon. For contractors working in or around Central Oregon, the persistent low vacancy rates and continued construction activity represent a sustained multi-year opportunity — one that’s particularly attractive because flex industrial projects typically offer faster timelines, more straightforward construction processes, and steadier margins than the complex multifamily or healthcare projects dominating other PNW markets.

Source: BC Group Inc. / Oregon Commercial Construction Report Read the full story: https://bcgroup-inc.com/oregons-commercial-construction-hotspots-2024-2025/