Industrial product is getting scarce in Boise, ID

BOISE, Idaho - Feb. 24, 2015 - PRLog -- 2009 marked the peak of the recession for the Boise Industrial market. The year ended with -67,000 SF of absorption, much better than the office market (-413,000 SF) and the retail market (-362,000 SF). But the story behind industrial's absorption is that without the delivery of WinCo's new 713,000 SF distribution facility, absorption for 2009 would have been -780,000 SF.

Thankfully, we've come a long way from those dark days. 2014 ended the year with 656,000 SF of positive absorption and a vacancy rate of only 6.8%. Projected supply has also tightened drastically since 2009, dropping from over 3 years worth of supply to just over 15 months. Supply within 6 to 18 months is considered healthy for our market.

Industrial Update

• 28,000 SF was vacated on Federal Way, causing Southeast Boise’s vacancy (4.9%) to rise to its highest point in over a year.
• 24,300 SF was vacated by an electronics company on Sawyer Ave in North Boise where vacancy rose to 3.9%.
• Vacancy in Central Boise decreased to 5.1% when Hale Food Equipment purchased a 15,600 SF building on Curtis.
• George’s Cycles purchased a 16,700 SF building on 3rd Street in Downtown Boise.
• 9,100 SF leased on 5th Ave in Meridian.