April Commercial Real Estate Review from TOK Commercial

BOISE, Idaho - April 17, 2014 - PRLog -- Office Review
Total vacancy remained flat at 12.5% in March, while Multitenant vacancy decreased from 18.1% to 17.8%. Vacancy in the Central submarket remains at 15.6%, its lowest point in over four years. Sage Charter School will expand their presence in the valley by leasing space in the 97,000 SF Parkcenter Mall. Transilio leased 6,000 SF at Boise Research Center, pushing vacancy to 13.7% in West Boise. An engineering company consolidating to Spokane vacated 20,300 SF in South Meridian, where vacancy rose from 10.5% to 11.8%.  Year-to-date, vacancy has increased, largely because of new space coming online due to tenants moving to the new Eighth & Main Building. Vacancy continues to be highest in the Meridian (16.2%) and Central (15.6%) submarkets. Meridian’s vacancy has increased due to new space available at The Village.

Industrial Review
Total vacancy remained flat in March at 6.8%. Multitenant vacancy increased slightly from 13.6% to 13.7%. Crazy Frog LLC, ERS, and Ideal Furniture absorbed a combined 11,900 SF of space in the Southwest submarket, contributing to vacancy declining dramatically in that market from 10.3% to 9.0%. Vacancy in the Central submarket declined for the 4th consecutive month to 7.1%, the lowest it has been since the recession. A packaging company vacated 26,400 SF on Executive Drive in the West submarket, where vacancy increased from 10.6% to 11.3%. Despite some large move-outs in March, vacancy remains well below the 10 year average. The North, Downtown, Airport, and Southeast submarkets have the least amount of available space.

Retail Review
Total vacancy remained flat at 9.1% in March. Unanchored vacancy increased from 17.3% to 17.6%.  Downtown has the lowest vacancy in the valley, and is at its lowest point since the recession (5.1%), despite Cafe Ole closing their BoDo location and vacating 8,000 SF. Z Gallerie, which is new to the Treasure Valley, leased 9,900 SF at  The Village at Meridian, improving vacancy to 11.4% for Meridian. Vacancy in Meridian has declined for 5 consective months following the spike in vacancy that was created when The Village at Meridian completed construction last October. Overall vacancy for Nampa has reached a 22 month high at 9.2%, with a significant amount of space still available at Garrity interchange. Overall Retail vacancy remains below 10 year average.

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