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Boise Commercial Real Estate Review for November
This is the Boise commercial real estate review for November from Thornton Oliver Keller Commercial Real Estate.
Total vacancy declined from 12.5% to 12.4%, while multi-tenant vacancy declined from 17.9% to 17.7% in October. The Meridian submarket has had 10 straight months of declining vacancy and has returned to a level last seen in 2005 (11.0%). Guild Mortgage leased 9,200 SF in Eagle River last month, dropping Eagle’s vacancy to its lowest point since mid-2007 (14.4%). In Downtown, St. Luke’s continued its expansion when it leased 11,600 SF off Shoreline & Americana, dropping Downtowns vacancy to 6.6%. A government agency vacated nearly 12,000 SF in Caldwell pushing vacancy in this submarket up to 14.0%. Net absorption is projected to end the year above 550,000 SF. This would be the highest net absorption since 2007. 11 of the 12 submarkets have positive absorption year-to-date.
Total vacancy increased from 9.1% to 9.3% in October. Multi-tenant vacancy increased from 17.8% to 18.3%. The Airport submarket saw several large vacancies hit the market in October, the largest of which was 48,400 SF vacated by a shoe distribution company. This pushed Airport’s vacancy to 4.2%, up from 2.9%. Vacancy in Nampa has improved for 3 consecutive months, ending October at 15.7%, its lowest point since Q1 2009. Danik Gymnastics vacated 11,000 SF in Eagle when they moved into their new building on Locust Grove. This pushed Eagle’s vacancy to its highest level in 12 months (9.9%). Net absorption is on track to end 2012 at the highest level since 2006. Currently Caldwell leads the market, mostly due to two large transactions totaling 180,000 SF.
Total vacancy remained flat at 8.7% in October. Unanchored vacancy declined from 17.9% to 17.7%, its lowest point since mid-2007. The Whole Foods Market in Downtown Boise completed construction last month and is set to open November 14th. This dropped Downtown’s vacancy to 7.8%, the lowest it has been since early 2008. West Boise has seen 3 consecutive months of vacancy increase, ending October at 4.7%. Even with this increase, West Boise still has the lowest vacancy in the market and is one of the healthiest in terms of supply (12 months). Net absorption is currently 737,000 SF and is projected to hit 842,000 SF by the year’s end. Meridian is leading the way in absorption (397,000 SF), primarily due to the new construction at the intersection of Eagle & Fairview.
For more information on the commercial real estate market in Boise, Idaho, please contact Thornton Oliver Keller at http://www.tokcommercial.com.