Boise Commercial Real Estate Review for June from TOK Commercial

June 22, 2012 - PRLog -- (BOISE, Idaho) --

Office Review

Total vacancy declined to 13.3% last month, its lowest level since early 2009. Eleven of the twelve submarkets (with the exception of Nampa) showed declining or flat vacancy. Multi-tenant continued its six month decline and ended May at 18.4%. The Emerald Corridor continues to see vacancy decline as new tenants move in. One such tenant is an adoption agency who leased 5,400 SF. Other submarkets with declining vacancy are Downtown (7.0%), West Boise (17.7%), Caldwell (12.4%) and Meridian (12.5%), which last month dropped to its lowest vacancy since late 2006. Asking and actual lease rates for both Class A and Overall have continued to improve in 2012. The gap between asking and actual is the closest it has been since 2007. Current projected supply is 28 months, down from 34 months in 2010.

Industrial Review

Total vacancy declined to 10.1% in May, marking its lowest level since the beginning of 2009. Multi-tenant vacancy remained flat at 19.0%. Many large deals occurred in the Airport submarket last month, bringing the vacancy rate to 4.1%: Bon Aire Industries purchased a 40,000 SF building, Western Trailer leased 20,000 SF, and Lucky Bums leased 17,000 SF. A steel and recycling company purchased a 16,000 SF building in Nampa, while Scentsy expanded its presence in Meridian by purchasing a 30,000 SF warehouse. Central Boise (11.6%) saw an increase in vacancy when 23,000 SF came online along Phillippi. Asking lease rates have declined slightly in 2012, however the actual rates are up $.02/SF over last year. Current projected supply is 27 months, down from 36 months in 2009.

Retail Review

Total vacancy remained flat at 9.2% last month and unanchored vacancy increased slightly from 18.3% to 18.5%. Four retail spaces leased in BoDo last month, dropping Downtown’s vacancy to 8.3%, the lowest its been since mid-2008. North Boise has continued its six month decline in vacancy and is currently at its lowest vacancy since late 2007 (15.0%). Two tenants vacated space along Broadway Avenue, raising Southeast Boise’s vacancy rate to its highest level since Q3 2008 (16.3%). Asking and actual lease rates for Class A retail space continues to improve in 2012.  Overall asking and actual rates appear to have hit bottom in 2011 and are ticking up this year. Current projected supply is 25 months. This is the lowest projected supply of each of the specialties.

For more information on the commercial real estate market in Boise, Idaho, please contact Thornton Oliver Keller at http://www.tokcommercial.com today!