Commercial Real Estate Review for November

BOISE, Idaho - Dec. 9, 2014 - PRLog -- Office Review

Total vacancy decreased slightly from 12.0% to 11.9% in October while Multitenant vacancy decreased from 19.1% to 18.6%. Vacancy in Downtown Boise decreased for the third consecutive month to 8.1%.  In Meridian, a 13,500 SF building on Watertower sold and Total Renal Care leased 8,900 SF at the Treasure Valley Professional Center. Vacancy in Meridian decreased for the third consecutive month to12.8%. Vacancy in West Boise increased to 14.1% as a 5,500 SF medical office on Ustick was vacated. Compunet expanded into an additional 8,100 SF in South Meridian at Granada Square. Overall Net Absorption is 348,000 SF year-to-date, which is slightly behind last year’s pace. Net Absorption has been strongest in Meridian and Downtown Boise where new projects have generated increased leasing activity.

Industrial Review

Total vacancy increased slightly from 6.7% to 6.8%, and Multitenant vacancy decreased from 14.3% to 14.1% in October. Vacancy in the Airport submarket increased to 4.0% after a distributing company vacated 11,300 SF at Airport Distribution Center. Vacancy in Meridian rose from 3.9% to 4.9% as Scentsy continued to consolidate to their campus (vacating 36,000 SF on Lanark), and a new largely vacant 8,800 SF building was constructed on Franklin Road. HD Fowler occupied a new 16,800 SF building on Baltic Place and vacated 16,000 SF at Taylor Commerce Park. Blac-Rac Manufacturing leased 5,600 SF in West Boise where vacancy continued to decrease to 10.1%. Overall Net Absorption is 635,000 SF year-to-date and is not expected to surpass last year’s rate. Nampa has the strongest Net Absorption due to GoGo squeeZ purchasing the 340,000 SF former MPC Facility.

Retail Review

Total vacancy decreased from 8.6% to 8.4% in October. Unanchored vacancy decreased from 16.3% to 15.2%.  Dick’s Sporting Goods and PetSmart opened at Treasure Valley Crossing in Nampa occupying a combined 57,400 SF. Nampa has the strongest Net Absorption year-to-date (128,700 SF). Vacancy in the Caldwell Boulevard area is 7.3%. Dollar Tree expanded their presence in our market by leasing 8,300 SF at Cottonwood Plaza in North Boise (7.8%), and 10,000 SF at Fairview Shopping Center in West Boise (4.3%). Vacancy decreased for the fifth consecutive month in Southwest Boise (10.0%) when Johnny’s Fit Club leased 10,000 SF at Five Mile Plaza. Year-to-date Net Absorption is 294,000 SF, which is down 30% from this month last year.