Why Bend Costco Moved: The Lease Details You'll Find Telling
The former Bend, Oregon, Costco location at the Forum Shopping Center along U.S. Highway 20 was vacated by Costco in October 2024 after the retailer relocated to a larger 182,000-square-foot facility on the city's north side, and it was first listed for lease in March 2025 at 156,729 square feet on 12.07 acres, later shifting to a sale listing with an assessed value of $19.9 million by April 2025, remaining unsold and generating local interest in potential redevelopment as of mid-2025.
Timeline of Events
The Bend Costco relocation process began gaining public attention in August 2024 when announcements confirmed the eastside store's closure tied to the new site's October 19 opening. This move left the original 156,000-square-foot warehouse empty, prompting swift commercial real estate action. By March 27, 2025, listings highlighted its prime positioning on a major arterial route with 636 parking stalls.
- August 2024: Public reveal of new Costco plans, assuring employee retention and future sale of old site.
- October 19, 2024: New 52-acre Costco opens at 62207 NW Costco Drive, featuring gas station and car wash.
- March 2025: Former location listed for lease via Commercial Realty Advisors Northwest (CRA).
- April 2025: Property quietly pivots to "For Sale" status, with offers due by April 30.
- July 2025: KTVZ reports no known buyers, City of Bend unaware of development interest.
Property Specifications
This expansive former warehouse offers versatile industrial space ideal for big-box retail, automotive showrooms, or RV storage, bolstered by robust infrastructure like 2500-amp power and 306 tons of HVAC capacity-one ton per 510 square feet. Its assessed value hit $19,901,300 for the 2024-25 tax year, with annual property taxes at $269,074. Transferable transportation SDC credits valued at $3,767,138 add significant appeal for developers.
| Feature | Details | Notes |
|---|---|---|
| Size | 156,729 sq ft on 12.07 acres | Located at 2500 NE Hwy 20 |
| Parking | 636 stalls (4.06 per 1,000 sq ft) | Abundant for high-traffic uses |
| Loading | 4 dock-high doors | Facilitates large-scale logistics |
| Power Supply | 2500 Amps, 480/277V 3-phase | Supports heavy industrial needs |
| HVAC | 306 tons capacity | Efficient climate control |
| Value/Taxes | $19.9M assessed; $269K taxes | 2024-25 figures |
Market Context and Challenges
Bend's commercial real estate market in 2025 has cooled compared to the post-pandemic boom, with local realtor Austen Anderson noting in July 2025 that "buyers are moving slow, watching their wallets closer than in 2020 or 2021." The old Costco site's transition from lease to sale reflects broader trends in adaptive reuse of big-box vacancies, where 28% of U.S. former warehouse spaces remained unleased after 12 months per a 2025 ICSC report. High asking prices and economic caution have stalled deals here.
- Initial lease listing emphasized flexibility for car dealerships or indoor sales, but no takers emerged by April 2025.
- Sale strategy targeted offers by April 30, leveraging SDC credits to offset development costs amid Bend's 7.2% commercial vacancy rate.
- July 2025 updates confirm "good bones" but unkempt areas, with CRA declining buyer comments and city reporting zero interest.
Potential Future Uses
Industry experts project the Forum Shopping Center property could host mixed-use developments, drawing from successful conversions like a former Costco in Albuquerque repurposed as a 2024 logistics hub generating $4.2 million in annual rents. Local developers eyed it pre-relocation for housing-retail hybrids, aligning with Bend's 15% population growth since 2020. Quotes from CRA brokers highlight its "perfect" fit for RV sales amid Oregon's outdoor market boom.
"The location comes with more than 600 parking spaces and can house a business needing up to 156,000 square feet-perfect for something like a car dealership, indoor RV sales."
— Real estate listing, March 2025
Economic Impact on Bend
The relocation boosted northside commerce, with the new Costco drawing 25% more daily visitors per city traffic data, while the eastside site contributes to a 12% rise in Forum Center vacancies. This shift underscores Bend's evolution from retail reliance to diversified development, where former anchors like this one represent $500 million in annual Oregon big-box redevelopment potential per 2025 state economic forecasts. Property taxes from a reoccupied site could inject $300,000 yearly into local schools and infrastructure.
Comparative Analysis: Old vs. New Costco
Evaluating the two Bend sites reveals stark upgrades in scale and amenities, influencing the old location's leasing hurdles. The new facility's superior access and features have accelerated regional traffic shifts, leaving the eastside asset undervalued temporarily.
| Aspect | Former Eastside Site | New Northside Site |
|---|---|---|
| Size | 156,729 sq ft | 182,000 sq ft |
| Land | 12.07 acres | 52 acres |
| Parking | 636 stalls | Expanded (exact TBD) |
| Amenities | Basic warehouse | Gas, car wash, retail |
| Value | $19.9M assessed | New construction ~$40M |
| Status | For sale, vacant | Operational since Oct 2024 |
Local Developer Perspectives
Bend's real estate community views the vacant warehouse as a prime redevelopment canvas, with pre-2025 buzz around multifamily overlays amid 9.8% annual housing demand growth. KBND reported developers "eyeing Costco at the Forum" by late 2024, though 2025's high interest rates-peaking at 7.1%-dampened momentum. Success stories like a Salem ex-Costco turned distribution center in 2023 offer blueprints, projecting 450 jobs upon repurposing.
Investment Metrics
For investors eyeing the listing, key stats include a 4.06 parking ratio surpassing Bend's 3.5 average, positioning it for high-density retail. At $127/sq ft assessed value, it undercuts regional medians by 15%, per CoStar 2025 data. Potential NOI post-redevelopment: $1.8 million annually at 9% rates, factoring 92% occupancy benchmarks from similar conversions.
- ROI Projection: 7-9% stabilized yield after $10M capex.
- Risk Factors: Market vacancy at 7.2%, buyer financing hurdles.
- Upside: Proximity to Hwy 20 drives 22% foot traffic premium.
City Planning Insights
The City of Bend's July 2025 statement-"not aware of any interest"-signals patience on zoning, with the site zoned CI (Commercial Industrial) allowing broad uses. Historical context: Bend's eastside grew 32% commercially since 2015, but post-relocation voids like this test adaptive policies. Officials recommend direct owner outreach, underscoring private-sector lead in such deals.
This saga exemplifies big-box churn in growing markets like Bend, where 65% of such vacancies find new tenants within 18 months per NAIOP stats. Stakeholders await a buyer to unlock the Forum asset's latent value.(Word count: 1428)
Helpful tips and tricks for Why Bend Costco Moved The Lease Details Youll Find Telling
What is the exact address of the former Bend Costco?
The property sits at 2500 NE Hwy 20 in the Forum Shopping Center, at the northwest corner of U.S. Highway 20 and 27th Street on Bend's east side.
Why did Costco leave the original location?
Costco upgraded to a larger, modern 182,000 sq ft store on a 52-acre site off Highway 20 near Cooley Road and Robal Lane, opening October 19, 2024, to meet surging demand from Bend's growing population.
Is the former site still available for lease or sale?
As of July 2025, it transitioned from lease to sale without confirmed buyers; CRA lists it actively, with the City of Bend reporting no development interest.
What are realistic redevelopment costs?
Adaptive reuse might total $15-20 million, factoring $120/sq ft renovations plus $3.8 million SDC credits; comparable projects yield 8-10% cap rates in Bend's market.
How has the new Costco performed?
The northside location is "bustling," with enhanced features like gas and car wash driving 18% higher sales volumes than the old site, per local reports.
Who owns the former Bend Costco property?
Ownership traces to Forum Shopping Center affiliates; CRA's Bob LeFeber and Alex MacLean handle sales, but specifics remain undisclosed in public listings.
Has there been any redevelopment news since July 2025?
No public updates post-July 2025 KTVZ report; the site appears stalled amid economic headwinds, though its specs keep it viable for 2026 deals.