Shopping continues at Bend malls

Published 5:00 am Friday, June 8, 2012

Like their counterparts across the country, Bend’s four major shopping centers appear to have come through the recession, with several expecting to see new tenants soon.

A visit to each of the centers — Bend Factory Stores, Bend River Promenade, Cascade Village Shopping Center and the Old Mill District — this week showed store occupancy levels between 57 and 95 percent.

As a whole, Bend’s retail sector has occupancy levels at more than 90 percent, said Steve Toomey, broker and partner at Compass Commercial Real Estate Services.

Compared to the office and industrial property markets, he said, retail is strong. However, some shopping centers have higher occupancy rates than others, which can be seen by visiting them.

Currently, the Old Mill District is about 95 percent occupied, according to The Bulletin’s survey, followed by Cascade Village Shopping Center at 77 percent, Bend River Promenade at 64 percent and Bend Factory Stores at 57 percent occupancy.

“The Bend River Promenade has been sluggish for the last couple years,” Toomey said. “But as of right now, we’re working on negotiating three new lease deals for the shopping center.”

Fellow Compass Commercial broker Russell Huntamer said the office is finishing letters of intent with three national companies that would fill roughly 8,000 square feet at the Promenade and has interest from two other national restaurants.

“The level of attention that national retailers are giving to Bend has sharply increased over the last couple months,” Huntamer said. “They are positioning themselves to take advantage of whatever rebound in the economy that we are seeing.”

The Promenade, located on Northeast Third Street near Butler Market Road, is home to Sears, Macy’s and Kohls. Previously known as the Bend River Mall, most of it was built in 1979 and remodeled in 2006. An additional remodel to the current Verizon building occurred in 2008. Combined, Huntamer said, the two projects created outside entrances for many store fronts that previously had inside-only customer access.

Further north, the Cascade Village Shopping Center houses J.C. Penney, Ross Dress for Less and Best Buy. Built in 1980, it was formerly called Mountain View Mall and was converted in 2005 to an open-air design. Representatives from Cascade Village Shopping Center declined to comment for this story.

The national picture

Nationally, vacancies at all mall types — lifestyle centers, regional malls and super-regional malls — stood at 5.7 percent in the first quarter, according to data from The CoStar Retail Report, published by CoStar Group, a commercial real estate information company.

In 2006, vacancy was at 3.3 percent, and in 2010 it reached 6.2 percent, showing an improvement but still below prerecession levels.

Jesse Tron, spokesman for the International Council of Shopping Centers, a Manhattan-based trade group, said redevelopment, such as transforming enclosed malls to open-air shopping centers has helped combat vacancies.

“You have minimal new development in the pipeline,” he said. “Developers are reinvesting in current properties, to make them the most desirable for the consumer and tenant.”

Tron said outlet malls performed well in the recession, and the few large shopping centers built during the period were outlets. He attributed their success to consumers focus on price.

“In the throes of the recession, the consumer was looking for price, period,” he said. “Now coming out of the recession, the consumer is looking for value. They want to make sure they are getting the most bang for their buck, and a lot of outlets provide brand names for a better price.”

Bright outlook for Bend

Locally, Bend Factory Stores on South Third Street had nearly half its 30 spaces vacant, the survey showed. Built in 1992, it’s home to Columbia Sportswear, a Nike Factory Store and an Eddie Bauer Outlet.

Despite the vacancies, Rick Cordes, co-owner of the Bend Factory Stores property, wrote in an email:

“Overall sales are up nicely from last year, and we do not anticipate losing any tenants in the next year.”

The shopping center’s website states that a Brooks Brothers Factory Store will open in spring 2012 and occupy two spaces near the Van Heusen store, but Sherry Short, the general manager, said she could not provide any more information.

Built in 2000, the Old Mill District contains Victoria’s Secret, Gap, American Eagle Outfitters and other retailers.

Noelle Fredland, marketing director of the Old Mill District, said the retail, restaurant and office development in southwest Bend has three spaces available and interested parties for each.

While several stores have moved out of the Old Mill, other retailers quickly moved in.

“Serendipity closed in March, and Sweet Tooth Candy Shoppe is opening in July,” Fredland said. “The Duck Store is leaving end of June, and Lids Locker Room is moving in this summer.”

The Old Mill is seeing a strong increase in sales almost across the board, Fredland said.

Bend’s shopping centers

Bend Factory Stores

Built: 1992

Major retail anchors include: Columbia Sportswear, Maurices and Nike Factory Store

Commercial tenants: 17

Vacant storefronts: 13

Bend River Promenade, formerly the Bend River Mall

Built: 1979 / Major remodel: 2006

Major retail anchors include: Sears, Macy’s and Kohls

Commercial tenants: 14

Vacant storefronts: 8

Cascade Village Shopping Center, formerly the Mountain View Mall

Built: 1980 / Major remodel: 2005

Major retail anchors include: J.C. Penney, Ross Dress for Less and Best Buy

Commercial tenants: 33

Vacant storefronts: 10

Old Mill District

Built: 2000

Major retail anchors include: Victoria’s Secret, Gap and American Eagle Outfitters

Commercial tenants: 56

Vacant storefronts: 3

Marketplace