Commercial Real Estate Review for February from TOK Commercial

BOISE, Idaho - March 21, 2014 - PRLog -- Office Review
Total vacancy decreased from 12.8% to 12.5% in February. Multitenant vacancy remained flat at 18.1%. Coleman Homes (11,600 SF) and Advanced Therapy Clinic (5,100 SF) completed construction on their new buildings in Meridian, where vacancy is now 16.1%. The College of Western Idaho expanded its presence in the valley by leasing 13,300 SF in Quail Court off Overland. As a result, vacancy in the Southwest submarket improved to 12.8%, the lowest its been since mid-2007. The 53,000 SF John Alden Building sold last month to a developer who plans to convert most of the building into apartment units with ground floor retail. Vacancy in Downtown Boise dropped from 10.0% to 8.7% with this building no longer on the market. Class A lease rates continue to improve, rising to $18.00/SF, FLSV.

Industrial Review
Total vacancy dropped dramatically in February, from 8.0% to 6.8%. Multitenant vacancy also declined from 14.3% to 13.6%. Much of this improvement in vacancy can be attributed to one deal in Nampa: GoGo squeeZ, an applesauce manufacturer, purchased the 338,000 SF former MPC Facility. As a result, vacancy in Nampa dropped from 17.5% to 11.6%, its lowest point since early 2009. Southwest Boise saw vacancy improve for a 10th consecutive month due to Florida Tile leasing 10,600 SF off Victory and First Choice Collision Repair purchasing a 20,300 SF building off Cole. BioMark expanded into an additional 14,800 SF in their current building in Downtown Boise. Lease rates remain flat at $.45/SF for Q1 of 2014. Projected supply has dropped from 19 to 15 months this year.

Retail Review
Total vacancy increased slightly from 9.0% to 9.1% in February. Unanchored vacancy also increased from 16.6% to 17.3%. Trader Joe’s completed construction on their new 13,200 SF building at the corner of Front & Capitol in Downtown Boise. Downtown Boise has one of the lowest vacancies in the valley, at 6.2%, and only 5 months of projected supply on the market. Johnny’s Fit Club leased nearly 10,000 SF at the Family Center on Federal Way, dropping vacancy in Southeast Boise to 10.9%. Southwest Boise saw a bump in vacancy from 11.3% to 11.9% when a 7,000 SF mortgage company closed its business on Overland Road. Lease rates remain flat in the first quarter of 2014. Projected supply is up slightly from the end of 2013 to 21 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.