Fast forward to Quarter Two in 2021, and many of you are still suffering the aftermath, re-framing your business and investment goals, and asking, “what’s next?”

Since commercial property management and real estate are our areas of expertise at Northwest Key, we’d like to take a look with you at how we’re seeing the Commercial Leasing Market in Bend and throughout Central Oregon evolve right now.

To say the corporate and office work environment changed last year is a huge understatement. Most businesses and companies with an office staff went from working in the office to working from home overnight! Over time this shift created a dynamic change where CEO’s and owners realized they just didn’t need as much space. Subsequently around 25% of businesses reduced their office space at the end of 2020. But as time has progressed into 2021, many people are starting to feel the drag of working from home. Yes, it’s more flexible than being at an office, and productivity of staff can remain relatively stable; however, many workers, teams and leaders are missing the routine of what office life can bring. In addition, a number of our clients are looking to rethink the office format to work with both in-office and work-from-home employees. For example, the bullpen format works well. Desks can be spaced per COVID-safe regulations where teams can still meet. Many can continue to work from home when needed or rotate with other employees. Read more national statistics about office space from JLL Research.

The strain on exercise and activity businesses during 2020 and quarter one of 2021 has been immense. Too many have had to close their doors. The ones who have managed to stay afloat have had to reconfigure their space to accommodate COVID regulations, such as moving classes outdoors or to a virtual environment. As regulations ease, businesses will again be looking for spaces their clients can workout in a group setting. According to a recent survey from MindBody Fitness, 58% of consumers are more comfortable going back to working out in a boutique fitness studio than in a multi-plex gym. The camaraderie and motivation of working out in a group are still desired, but our general comfort with group settings indoors has changed since the pandemic. This is an opportunity for fitness companies to rethink their format, space, and offerings! 

More than 110,000 eating and drinking establishments closed in 2020, according to Fortune Magazine. In Central Oregon, the outlook has been stark. With continued restrictions and rising Covid case counts, it has been a game of stopping and starting over and over again for many establishments. It‘s difficult to keep staff and even harder to predict the future. That’s why we have partnered with a number of our property owners and tenants to assist with applying for grants offered through the State of Oregon to provide relief for their struggling food and beverage businesses.

Business Oregon is currently offering round two of Rent Relief Grants for commercial businesses through May 6th. Our team at Northwest Key assisted a number of our clients with these applications in round one, and we were awarded a grant for two of our restaurant tenants and one fitness facility.   

If you are interested in applying for a grant, or providing this information to your tenants, visit oregon4biz.com for more information.

The outlook for the commercial lease market is bound to change over the next 12 months, but here are a few ideas to keep in mind:

Look outside of Bend proper - If you’re looking for space and cannot find it in Bend, take a look at surrounding areas. Redmond’s commercial interest is on the rise according to The Source. As Bend grows, so will surrounding areas, and that space could be more accessible for you! 

Look to digitally adapt - Regardless of an economic rebound, the pandemic has caused the entire business world to lean more on technology. Whether you’re creating a bullpen style office space or fitness studio environment that accommodates in-person and online classes, get comfortable with utilizing digital options to thrive.

If you’re looking for property in Central Oregon, we’re the team for you! At Northwest Key, we believe in a personalized approach to commercial real estate and property management. That’s why your broker will also be your property manager. We’ll be with you every step of the way -- and beyond that!