Commercial Real Estate Review for August from TOK Commercial

Sept. 12, 2013 - PRLog -- Office Review
Total vacancy remained flat at 11.9% in August, while Multitenant vacancy increased from 17.2% to 18.2%. Idaho Power vacated a full floor (16,700 SF) at the Banner Bank Building in Downtown and moved those employees to their new Boise Research Center location. However this vacancy was mostly offset by leases signed by White Cloud Analytics and Xtreme Consulting, which leased 6,600 SF and 5,500 SF in Downtown respectively. Bodybuilding.com has completed improvements on their new HQ in Boise Research Center. As a result, they moved their call center to BRC, leaving behind 9,800 SF on Stratford in Meridian. Class A lease rates continue to recover with $17.50/SF being the average asking rate. Currently there are 24 months of projected office supply.

Industrial Review
Total vacancy declined from 9.2% to 9.0% in August, its lowest point since Q4 2008. Multitenant vacancy remained flat at 16.2%. Commercial Tire and Bandag Retread moved into their newly constructed 48,500 SF building on Gowen Road last month, while Idaho Power purchased the 27,500 SF former DHL facility on Albatros. These two deals dropped the vacancy rate in the Airport submarket to 3.3%, a 12-month low. Boise State University purchased a 29,800 SF building on Gage Street, improving vacancy in the Central submarket to 10.0%, its lowest point in nearly 2 years. Vacancy in North Boise (4.8%) improved for a 7th consecutive month, primarily due to an 18,500 SF building selling to ServPro. Asking rates are up over 12% this year compared to 2012 ($.45/SF, NNN).

Retail Review
Total vacancy declined from 8.8% to 8.4% in August, while unanchored vacancy increased from 16.5% to 16.7%. Gordman’s signed a lease to take 51,000 SF of the former K-Mart space on Parkcenter Blvd. As a result, vacancy dropped from 17.1% to 12.8% in the Southeast submarket, the lowest it’s been since 2006. The new 165,500 SF Walmart at Overland & Meridian Roads completed construction last month in South Meridian. Toni & Guy Salon expanded their presence in the valley by leasing the 9,700 SF former Game World space at Boise Spectrum. As a result, retail vacancy in Southwest Boise improved to 11.1%. Year-to-date there has been 240,000 SF of positive net absorption. This absorption has caused projected months of supply to improve to 17 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.