Office Review
Total vacancy continued its decline in July, dropping from 13.1% to 12.6%, its lowest point since late 2008. Multi-tenant vacancy continued to improve, declining from 17.9% to 17.7%. Many submarkets have shown three or more months of consecutive vacancy decline including Central (16.9%), Downtown (6.8%), North Boise (15.6%), Southeast Boise (9.7%), Meridian (12.2%) and Caldwell (10.9%). Aptina Imaging leased nearly 24,000 SF in Silverstone Plaza, dropping Meridian’s vacancy to its lowest point since 2006 (12.2%). There has been over 460,000 SF of positive net absorption so far in 2012, nearly surpassing 2011’s total (465,000 SF). Nampa (due to Ventana Business Park), West Boise and South Meridian lead the way in net absorption for the valley.
Industrial Review
Total vacancy has had seven months of consecutive decline and ended July at 9.6%, down from 9.7%. Multi-tenant vacancy declined last month to its lowest point in over two years (18.7%). A 22,000 SF space off of Curtis Road was vacated in Central Boise, pushing vacancy to its highest level since mid-2010. Three spaces totaling 30,000 SF were leased in Downtown Boise, dropping vacancy in this submarket to 5.6%. Southeast Boise’s vacancy declined to 4.5% in July after 5,800 SF leased in Gateway East near Micron. This is Southeast’s lowest vacancy since mid-2008. There has been 333,000 SF of positive net absorption in 2012. Airport, Southwest and Southeast Boise lead the way with over 260,000 SF absorbed so far this year. Projected supply has dropped to 24 months.
Retail Review
Total vacancy has declined for the past six quarters, ending July at 8.4%, down from 8.8%. Unanchored vacancy declined from 18.3% to 18.1%, its lowest point since Q3 2009. Activity near the Boise Towne Square Mall continues to be high with new leases signed by two new anchors to Boise. H&M leased the 30,000 SF space vacated by Borders and Dave & Buster’s leased the remaining 24,500 SF at Boise Towne Plaza, a portion of the former Circuit City space. West Boise’s vacancy is currently 4.0%; a vacancy which has not been seen since 2005. Even with all of this activity in West Boise, Meridian is the submarket leading the way in net absorption. To date, 294,000 SF of the total 581,000 SF absorbed in the market has been in Meridian. Projected supply for the overall market is 19 months.
To learn more about the commercial real estate market in Boise, Idaho and the Treasure Valley, please contact Thornton Oliver Keller today at http://www.tokcommercial.com.
