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Boise Commercial Real Estate Review for December from TOK Commercial
Boise Commercial Real Estate Review for December from TOK Commercial Real Estate
Total vacancy and multi-tenant vacancy remained flat in November at 12.4% and 17.7% respectively. Downtown Boise’s vacancy dropped to 6.5% when 8,800 SF was leased by a law group. This marks Downtown’s lowest vacancy since late 2008. A government agency leased 8,700 SF in Southeast Boise, reducing vacancy in this submarket to 8.7%, its lowest point since mid-2009. While many areas in Ada County have seen vacancies decline, Nampa has seen 3 consecutive months of rising vacancy and is currently at 13.3%. Overall asking and actual lease rates have continued to increase since 2010. Even with these increases and continued improvement in market fundametals, lease rates are still well below pre-recession levels. There is currently 25 months of project supply in the market.
Total vacancy increased from 9.3% to 9.8% in November. Multi-tenant vacancy remained flat at 17.8%. The MPC Facility in Nampa was vacated by Transform Solar, placing 254,000 SF back on the market. This pushed vacancy in Nampa to 19.7%, its highest point since mid-2009. Canyon County vacancy is now at 17.3%, over twice the vacancy in Ada County (7.3%). Last month, West Boise’s vacancy declined to its lowest level since early 2010 when a 61,000 SF building was leased to a gun manufacturer and a 14,000 SF building leased to a metal works company. Asking rates remain flat since mid-year, and down slightly from 2011, at $.40/SF NNN. Actual rates are up slightly to $.36/SF NNN. Projected months of supply is currently 24 months, a decline of 12 months since 2009.
Total vacancy and unanchored vacancy remained flat in November at 8.7 and 17.7% respectively. Several submarkets including Central (8.8%), Downtown (7.5%), Southeast (16.5%), West Boise (4.7%) and Eagle (12.4%) saw vacancy improve last month. North Boise has had 3 months of increasing vacancy while South Meridian is currently at its highest level in nearly 2 years. Retail asking rates have remained flat for 2011 and 2012, but actual rates have increased. Class A actual rates, while still well below pre-recession values, have seen increases for the past two years. The bottom for overall actual rates appears to have occurred in 2011. Projected months of supply is just over 20 months. This is the lowest of the three sectors and less than half the level seen in 2010 (48 months).
This article was originally posted on http://www.tokcommercial.com. For more information on the Commercial Real Estate market in Boise, Idaho and the surrounding area, please contact Thornton Oliver Keller!