Commercial Real Estate Review for June from TOK Commercial

June 17, 2013 - PRLog -- Office Review
Total vacancy declined from 12.7% to 12.6% in May. Multi-tenant vacancy reversed its 4 month climb and dropped to 18.8%. US Ecology leased nearly 17,000 SF in Downtown Boise, but will vacate 14,000 SF in Southeast Boise. As a result, vacancy in Southeast Boise is up for a 4th consecutive month to 9.4%. BioLife Plasma Services completed construction on its new 16,000 SF facility in Meridian last month. Power Engineers expanded their presence in Meridian by leasing an additional 11,600 SF in Silverstone Business Park. Class A lease rates are up for 2013, while overall rates are flat. This is the first time that Class A asking rates have increased since 2007. Projected supply for the overall market is currently 26 months. Meridian leads the way with only 11 months of projected supply.

Industrial Review
Total vacancy and multi-tenant vacancy remained flat in May at 9.5% and 16.8% respectively. Sagatron Group Incorporated leased 15,000 SF near Micron, dropping Southeast Boise’s vacancy to 5.1%. Ambush Tactical moved into a larger space on Chinden Blvd last month, dropping North Boise’s vacancy to its lowest point since late 2008 (5.3%). A game supplier vacated 15,400 SF in Southwest Boise, pushing vacancy to a 12 month high (11.0%). Nampa’s vacancy improved for a 5th consecutive month, however this submarket still has over one million square feet of vacant product. Lease rates are up in 2013 with an average asking rate of $0.43/SF, NNN. Projected supply is currently 24 months, down a full 12 months from its high in 2009.

Retail Review
Total vacancy and unanchored vacancy increased last month to 8.9% and 16.7% respectively. Toys R Us and Babies R Us combined their stores into a 50,300 SF location at The Village at Meridian. Toys R Us vacated 45,000 SF near the Boise Towne Square Mall, driving vacancy in West Boise to its highest point since early 2012 (5.5%). Babies R Us vacated 30,600 SF in Meridian Crossroads, just south of their new location. The City of Caldwell purchased the former Kings space in downtown Caldwell, dropping vacancy in Caldwell to 6.3%, its lowest since mid-2010. Overall lease rates are up in 2013, while Class A rates remain flat. Projected supply is 18 months for retail, lower than both the office and industrial sectors. Downtown Boise has the lowest projected supply of all submarkets (6 months).

For more information on commercial real estate in Boise, the Treasure Valley and the surrounding area, please contact Thornton Oliver Keller at http://www.tokcommercial.com.