Whats in store for the Boise industrial market

BOISE, Idaho - Sept. 20, 2015 - PRLog -- As the market continues to tighten and new product is delivered, lease rates will steadily climb. Speculative construction will pick up steam in the second half of the year with 26,000 square feet delivering on South Cole Road and 41,000 square feet soon to be available near Franklin & Linder in Meridian.

A new federal energy code is underway, requiring more insulation to be installed on industrial buildings. Owners of buildings that do not meet federal standards may have to put capital into their properties for tenant improvements or HVAC upgrades. For obsolete buildings, the cost to retrofit and upgrade may very well exceed the cost of constructing a new building. With construction costs up 10–15 percent, the pool of inexpensive Class B and C space will continue to shrink.

Vacancy may increase in the second half of the year as some larger vacancies, such as the 105,000 square foot Weyerhaeuser plant on Amity, enter the market. However, even with a bump in total vacancy, the market for small to mid-size spaces will continue to tighten, creating a challenge for expanding tenants. Demand will remain high for quality products, and new developments may see shorter lease-up time as a result.