Commercial Real Estate Review for January

BOISE, Idaho - Feb. 12, 2015 - PRLog -- Office Review Total vacancy decreased for the ninth consecutive month to 11.4% in December. Multitenant vacancy has steadily decreased to 18.0%.  Two tenants leased a combined 6,500 SF at the US Bank Building in Downtown Boise, where vacancy decreased to 7.4%. Vacancy in Southeast Boise decreased to 10.6%, its lowest point in over a year. Connect Wireless leased 6,500 SF at the Forum One Building in Eagle. Vacancy in Eagle (9.5%) is at its lowest point since the recession.  Vacancy in Meridian decreased for the third consecutive month to 12.1%. Vacancy is highest in the Central Boise (15.3%) and Caldwell (15.9%) submarkets. Vacancy is lowest  in the Downtown Boise (7.4%) and Eagle (9.5%) submarkets. Total vacancy has been below the historical average (12.6%) for nearly 2 years.

Industrial Review Total vacancy remained flat at 6.8% in December, and   Multitenant vacancy has remained flat for the past five months. Southeast Boise’s vacancy reached its highest point in over a year (4.0%) as a total of 21,000 SF came on the market at Federal Way Commerce Center and the former Trey McIntyre Project building. In the Airport submarket (4.4%), Idaho Youth Ranch expanded into an additional 11,600 SF on Gowen and Ultimate Logistics leased a 17,100 SF building, moving from a smaller building in Nampa. Multiple tenants vacated a combined 26,800 SF in West Boise where vacancy rose to 10.0%. Vacancy in Caldwell decreased from 8.9% to 7.5% when Right Now purchased a 29,000 SF building on Evans Street. Total vacancy is two percentage points below the historical average (8.8%).

Retail Review Total vacancy decreased slightly from 8.4% to 8.3% in December, reaching its lowest point in over a year. Unanchored vacancy decreased from 15.6% to 14.8%. Dollar Tree opened a new 11,300 SF store on Cleveland in Caldwell.  Vacancy in North Boise (7.1%) decreased for the fifth consecutive month. Lunchbox leased 7,000 SF at Block 44 in Downtown Boise, where vacancy decreased to 8.7%. Vacancy in Southeast Boise decreased for the third consecutive month to 9.3% as the Idaho State Liquor Store moved into 6,300 SF at Broadway Center. Vacancy is highest in the Eagle (13.6%) and Airport (31.5%) submarkets, and lowest in the West (4.4%) and Caldwell (5.9%) submarkets. Total vacancy has been below the historical average (9.9%) since 2011.