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Commercial Real Estate Review for December from TOK Commercial
Boise Commercial Real Estate Review for December 2013 from Thornton Oliver Keller Commercial Real Estate
Total vacancy declined from 12.7% to 12.2% in December. Multitenant vacancy also declined from 18.1% to 17.9%. The 60,000 SF former HP data center leased to Data Site, dropping vacancy in the West Boise submarket 150 basis points to 14.1%. Vacancy in Central Boise (15.9%) improved for a 5th consecutive month with the 9,600 SF expansion of T-3 Wireless at Boise Office Center on Franklin Road. The Eagle office market continued to tighten throughout 2013, ending the year at 10.9% vacancy, its lowest point since mid-2007. Downtown Boise saw an increase in vacancy in December as space in Banner Bank was vacated due to a company consolidation. Vacancy is 7.5% for Downtown, but is expected to increase with the completion of Eighth & Main in January.
Total vacancy declined each quarter in 2013, ending the year at 8.2%. Multitenant vacancy also declined to 14.5%. Construction was finished on a new 76,500 SF building located on Pine Avenue in Meridian. 55,300 SF of this building remains vacant, pushing vacancy in Meridian up from 3.7% to 5.1%. Norco also completed construction on their new 37,900 SF building on Shannon Drive in Nampa. They are moving operations from a smaller 11,100 SF space located a few miles away. Crown Moving & Storage expanded their presence in the valley by leasing 21,400 SF at Federal Way Commerce Center. As a result, vacancy in the Southeast submarket improved to 3.9%, its lowest point since mid-2008. Vacancy in Ada County tightened from 7.2% to only 6.0% in 2013.
Total vacancy decreased from 9.1% to 8.9% in December, however, vacancy remains up from Q3. Unanchored vacancy also decreased from 16.5% to 16.3%. Brewer’s Haven opened a second location in the market, leasing 5,100 SF on 12th Avenue in South Nampa. As a result, vacancy declined from 6.9% to 6.1%. Toby Keith’s I Love This Bar is currently under construction on their new 17,000 SF restaurant and Republic of Couture will be opening soon in their 6,000 SF space in The Village at Meridian. While vacancy rose from 8.6% to 13.2% with the completion of The Village in October, it has been steadily declining as tenants are announced and demand for space remains high. Vacancy continues to improve in North Boise (8.4%), Southeast Boise (11.5%) and Eagle (11.1%) as well.
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.