Commercial Real Estate Review for August

Sept. 2, 2014 - PRLog -- Office Review
Total vacancy remained flat at 12.2% through July, while Multitenant vacancy increased from 18.3% to 18.5%. Vacancy in Eagle dropped to 11.5%, and vacancy in Nampa decreased for the third consecutive month to 8.2%. Two law firms closed, vacating a total of 18,300 SF Downtown, where vacancy rose to 8.9%. The Fairview Business Plaza (33,800 SF) leased to Village Charter School in West Boise. Vacancy in the Central submarket decreased for the third consecutive month to 15.4% when Coyote Design purchased a 10,200 SF building on Curtis Road. Overall net absorption remains on track to finish near last year’s pace. Net absorption is strongest Downtown due to increased activity from 8th & Main.

Industrial Review
Total vacancy increased for the first time this year to 6.7% in July. Multitenant vacancy increased from 14.0% to 14.5%. Western Recycling moved operations from their Glenwood location to a new 37,600 SF building on Century Way in the Southwest Submarket, where vacancy dropped to its lowest point (7.3%) since the recession. Vacancy in the West submarket decreased for the fourth consecutive month to 10.7%. Robertson Supply expanded into a new 18,000 SF building in the Caldwell Blvd area where vacancy fell to 14.8%. On Taylor Street in Meridian 14,700 SF leased to Crossfire Elite. Overall net absorption is already 596,000 SF for 2014, and may surpass last year’s rate. However, more than half of this is from GoGo squeeZ purchasing 338,000 SF in Nampa. Net absorption is strongest in the Nampa, Southeast, and Southwest submarkets.

Retail Review
Total vacancy increased from 8.7% to 9.0% in July. Unanchored vacancy increased from 16.4% to 16.9%.  Walmart Neighborhood Market opened in South Nampa, occupying 41,400 SF of new construction. Vacancy in the Central submarket decreased to 9.0% when Boise International Market leased 12,200 SF on Franklin Rd. Body Renew Fitness went out of business closing all locations, the largest of which was 8,300 SF in Meridian. Macy’s Clearance center at Karcher Mall closed its doors, vacating 20,300 SF. As a result, vacancy in the Caldwell Blvd submarket (7.3%) is at its highest point in over two years. Overall net absorption remains at only 52,000 SF, but is expected to pick up later this year. Net absorption is strongest in Meridian (66,700 SF), and weakest in Eagle (-30,900 SF).