Commercial Real Estate Investment in Central Oregon: Opportunity on the Rise?

Central Oregon has long been a magnet for outdoor enthusiasts and lifestyle seekers—but it’s also rapidly gaining traction among savvy commercial real estate investors. With Bend, Redmond, and surrounding towns growing in population, job base, and infrastructure, the region is presenting unique opportunities in retail, industrial, office, and mixed-use spaces.

Whether you’re a first-time investor or looking to expand your portfolio, here’s what you should know about the Central Oregon commercial market right now.

💼 Why Investors Are Looking at Central Oregon

1. Population Growth = Business Demand

Bend is one of the fastest-growing cities in Oregon. As new residents arrive, the demand for everything from healthcare facilities to coworking spaces continues to climb.

2. Tourism + Remote Work Are Reshaping Demand

The influx of visitors and remote workers has increased the need for flexible office space, boutique retail, and hospitality-oriented properties—especially in walkable districts like downtown Bend or the Old Mill.

3. Pro-Business Climate

Compared to Portland or the Willamette Valley, Central Oregon municipalities are generally more supportive of business development, permitting, and economic incentives—especially in Redmond and Prineville.

🏗️ Popular Types of Commercial Investment Properties

🏭 Industrial Warehouses

With e-commerce and light manufacturing on the rise, warehouse and logistics properties in Redmond and southeast Bend are in high demand.

🛒 Retail & Mixed-Use

In walkable corridors like NW Galveston Ave or downtown Sisters, small retail or restaurant spaces (especially those with housing above) are seeing solid appreciation and rental demand.

🏢 Office Space

While office demand has changed, well-located and smaller flex office spaces are still performing well, especially those catering to co-working or hybrid teams.

🏨 Hospitality and Vacation Lodging

Boutique hotels, motels, and STR-zoned properties (like Airbnb-friendly buildings) remain strong, especially in tourism-heavy towns like Sunriver or Black Butte Ranch.

📍 Investment Hotspots

Bend

• Most competitive market

• Best for retail, high-end mixed-use, and office redevelopment

• Zoning and permit challenges may slow new builds

Redmond

• Strongest growth in industrial and light commercial

• Lower cost per square foot than Bend

• Popular for businesses priced out of Bend

Prineville

• Growing tech and data center presence (thanks to Facebook and Apple)

• Increasing demand for service-based commercial

La Pine & Sisters

• Sisters: best for boutique retail and vacation-focused investments

• La Pine: value-focused, with future growth potential and residential spillover from Bend

📊 Current Trends (Mid-2025 Snapshot)

• Cap rates holding between 5.5%–7% depending on property type and tenant

• Lease demand strong in industrial and medical

• Owner-user buyers increasing due to rising lease rates

• Build-to-suit activity rising in Redmond

Central Oregon offers a diverse landscape of commercial real estate opportunities, whether you're seeking income-producing properties or long-term capital appreciation. With the right guidance and a focus on the right submarkets, this region could be a smart move for your next investment.

FAQs

❓ What’s the average price per sq ft for commercial property?

• Bend retail: $250–$400/sq ft

• Redmond industrial: $120–$180/sq ft

• Office: $180–$300/sq ft depending on build quality and location

❓ Is financing harder for commercial than residential?

Yes. Expect to put down 20%–30%, and lenders want to see strong financials or lease commitments. SBA 504 loans are a good option for owner-users.

❓ What’s the average lease rate?

• Industrial: $0.85–$1.25/sq ft (NNN)

• Retail: $1.50–$3.00/sq ft (NNN)

• Office: $1.75–$2.75/sq ft (Modified Gross or NNN)

❓ Are there zoning or permitting challenges?

Bend can be slow due to high demand and review processes. Redmond and Prineville tend to be more flexible and pro-development.