Commercial Real Estate Review for May from TOK Commercial

May 13, 2013 - PRLog -- Office Review
Total vacancy remained flat in April at 12.7%. Multi-tenant vacancy rose for a fourth consecutive month to 18.9%, its highest point since Q1 2012. Nearly 24,000 SF was vacated last month in Downtown Boise, pushing absorption to -76,400 SF year-to-date, even lower than the overall market. As a result, Downtown vacancy has climbed to its highest point since mid-2011 (7.9%). United Health leased 12,300 SF off Watertower in Meridian last month, dropping vacancy in this submarket to 9.2%. South Meridian’s vacancy (11.3%) also improved in April after a 9,100 SF office building sold in Silverstone Business Park. Currently 9 of the 12 submarkets have negative net absorption year-to-date, compared to only two submarkets at the end of 2012.

Industrial Review
Total vacancy decreased in April from 9.8% to 9.5%. Multi-tenant vacancy has declined to 16.7%, its lowest point since before the recession. Montana Timber Products leased 16,000 SF off Arthur Street in Caldwell, dropping vacancy in this submarket to a historical low (9.0%). Idaho Specialized Transportation leased 34,000 SF in Nampa, causing vacancy to improve for a fourth consecutive month to 18.2%. Even with this 34,000 SF lease, Nampa still has over one million square feet of vacant space on the market. This equates to over 5 years of projected supply. Hayden Beverage expanded their presence in Boise by leasing an additional 30,000 SF in their current location off Gowen Road in the Airport submarket. Airport is the submarket with the lowest net absorption in 2013 (-37,500 SF).

Retail Review
Total vacancy declined from 8.8% to 8.5% in April. Unanchored vacancy continued its downward trend and is currently 16.4%. Crooked Fence Brewery leased the 7,600 SF former China Buffet restaurant space at Chinden & Glenwood last month, dropping vacancy in the North submarket to its lowest point since mid-2005. Murano Beauty Academy leased the 10,000 SF former Oliver Finley space at Fairview & Five Mile, pushing West Boise’s net absorption to 14,100 SF for the year. Downtown Boise has the strongest net absorption in 2013 (23,600 SF), as well the lowest vacancy rate (6.8%). Southwest Boise has the lowest net absorption year-to-date (-28,000 SF), mostly due to two large spaces that were vacated in the first quarter of this year which totaled 24,500 SF.

For more information on commercial real estate in Boise, the Treasure Valley and the surrounding area, please contact Thornton Oliver Keller at http://www.tokcommercial.com.