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Commercial Real Estate Review for March 2013 from TOK Commercial
Boise and Treasure Valley Commercial Real Estate Review for March 2013 from TOK Commercial
Total vacancy increased from 12.5% to 12.6% in January. Multi-tenant vacancy also rose from 17.9% to 18.3%. A call center vacated 8,500 SF on Cleveland Blvd causing vacancy in Caldwell to rise 200 basis points to 14.6%. Vacancy in Nampa (15.0%) rose for a 6th consecutive month and is currently at its highest point since Q4 2011. 19,000 SF was vacated on Emerald in West Boise, marking the 2nd largest move out for 2013. Muscle Pharm expanded their presence in Boise by leasing an additional 17,100 SF in a building on Overland. This dropped vacancy in Southwest Boise to its lowest point since Q1 2008 (18.0%). Projected supply has ticked up slightly in 2013 and is currently 26 months. Class A rents are also up to begin the new year with asking rates at $17.50/SF.
Total vacancy declined in February from 9.7% to 9.6%, while multi-tenant vacancy increased from 17.5% to 17.9%. The Idaho State Lottery Commission leased 7,000 SF off Cole Road in Southwest Boise, dropping the submarket’s vacancy (8.0%) to its lowest point since mid-2007. A 7,500 SF building on Chinden sold last month to Complete Restoration, who in turn vacated 5,600 SF in West Boise on President Drive. Northwest Interiors leased a 8,100 SF building on Karcher Road in Nampa, dropping vacancy in this submarket to 27.2%. Industrial asking rates are up for the first time in 4 years ($.42/SF). Actual rates have also increased but are still 20% below prerecession levels. Projected supply is currently 25 months. Historically, a healthy projected supply ranges from 6 to 18 months.
Total vacancy remained flat at 8.8% in February. Unanchored vacancy declined from 17.6% to 17.1%. Fashion Bug closed its doors at Meridian Crossroads (Eagle & Fairview) placing 8,000 SF of vacant space on the market. The Egg Factory is opening a new location in the former Parthenon Greek Cuisine restaurant on Idaho Center Blvd. As a result, vacancy in the Idaho Center submarket dropped for a 3rd consecutive month to 18.8%. Meanwhile, Los Betos leased two former KFC locations along Cleveland/Caldwell Blvd. The KFC locations were on the market for less than a month, indicating strong demand for restaurant space. Projected supply continues to improve and is currently 19 months, well below the high of 48 months in 2010. Overall lease rates are up slightly so far in 2013.
For more information on Commercial Real Estate in the Boise market and surrounding area in the Treasure Valley, please visit http://www.tokcommercial.com.