Treasure Valley Commercial Real Estate Review for July

July 13, 2012 - PRLog -- (Boise, Idaho) -- Here is the Treasure Valley Commercial Real Estate Review for July from Thornton Oliver Keller Commercial Real Estate:

Office Review

Total vacancy declined for a fourth consecutive month from 13.3% to 13.1%. Multi-tenant vacancy has declined for seven straight months to 17.9%. This is the lowest point for multi-tenant vacancy since early 2009. Meridian’s vacancy has declined for the past six months and is currently at its lowest level since late 2006. The projected supply in this submarket is 16 months, well within the healthy range of 6 to 18 months. 10 of the 12 submarkets showed a vacancy decline in June. Only Southwest  (19.8%) and Eagle (17.2%) posted increases. Downtown Boise remains a tight office market, with vacancy at its lowest point since December 2008 (6.9%). North Boise ended last year with nearly 43 months of supply, but in 2012, North vacancy has declined nearly 3 percent and improved supply to less than 3 years.  

Industrial Review

Total vacancy returned to single digits in June (9.7%), its lowest level since before the recession. However, multi-tenant vacancy increased from 19.0% to 19.4%. The Airport submarket has had five months of consecutive vacancy decline and currently has only 3.4% of its space on the market as vacant, the lowest of all of the submarkets. Meridian (5.9%) and Southeast Boise (4.8%) both hit their lowest points since mid-2008. At the opposite end of the spectrum, Downtown hit its highest vacancy since Q3 2006 (10.3%), while North Boise’s vacancy has risen for a fourth straight month to 6.7%. A 52,000 SF building sold in Southeast Boise and a 49,000 SF space was leased to a drywall company in the Airport submarket, indicating an increase in demand for space on the east side of the valley.  

Retail Review

Total vacancy and multi-tenant vacancy declined in June to 8.8% and 18.3% respectively. Downtown (8.1%),  West Boise (4.9%), Meridian (5.7%), and Nampa (8.1%) continue to have declining vacancy and are currently at pre-recession levels. These four submarkets have the lowest levels of projected supply and are in the healthy range of projected supply (6 to 18 months). Fred Meyer opened last month at Chinden & Linder, occupying 178,000 SF of newly constructed space. Sportsman’s Warehouse signed a 48,000 SF lease to reopen in their former location at Treasure Valley Crossing. Walmart will open their first neighborhood market in Boise at Cole Village Shopping Center at Ustick & Cole, where they leased 44,200 SF.

To learn more about commercial real estate in the Treasure Valley, please contact Thornton Oliver Keller at http://www.tokcommercial.com today!