Brent McLean
Eugene-Springfield has experienced a downturn in demand for industrial property in the first, second, and third quarters of 2009. The property lease rates have also experienced a downturn by 15 to 20% on triple net leases (a lease in which the tenant is responsible in addition to the rent payment everything related to the building including taxes, insurance, and maintenance). This environment has created a “Tenant Market” with the tenant being able to negotiate some great tenant improvements and other concessions if they were willing to sign a 3 year lease term or longer. The current inventory absorption level is stagnate and there was very little to no new industrial development during 2009.
The fourth quarter of 2009 is showing some leasing activity with the economic news sounding a bit better.
West Side:
There has become more available inventory in the West Eugene Industrial Sector. With many tenants downsizing since the 2nd quarter of 2007, the market has been left with a lot of quality smaller spaces available. To the best of my knowledge I do not know of any new industrial buildings being built on speculation planned for the first or second quarters of 2010. I feel when demand heats up again and tenants begin seeking more space that this will be a hot area. If have an industrial business in Eugene, this will be the place to be.
Whitaker:
This mixed use area is becoming quite the “Arts Orientated “area in Eugene.
It is one of the only areas in Eugene where they allow the mixed use between industrial uses and retail use. Lots of the local artisans prefer this area due to its proximity to the downtown, 5th Street Market area and the Saturday Market area.
Chad Street/Gateway:
During this economic downturn the demand for industrial property in this area has remained very high. This demand was created due to the new “Regional Hospital” that was built at River Bend and the close proximity between to I-5 for freeway access and major amenities like fuel, shopping, hotels, and restaurants. I have heard of several new developments planned for the second quarter in 2010.
Springfield:
This area has held up quite well during the recession with fewer vacancies than other parts of our Lane County. Lease rates have held up well and the demand to be in Springfield still is there. There have also been some good buying opportunities if you want to purchase a small industrial building in Springfield.
For more information on industrial lease rates, leasing opportunities, or opportunities to buy an industrial building don’t hesitate to contact myself Brent McLean at (541) 913-1031 or [email protected].
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