Office Real Estate Review: Direct vacancy decreased slightly from 15.7% to 15.6%, while Multi-tenant vacancy remained at 20.0% in December. Vacancy has been on a steady decline in Meridian (21.5%) and is now at its lowest level since late 2008. Vacancy has been rising in Central (16.8%), Southwest (22.95%), and Southeast (11.2%). Projected supply is currently two and a half years, with the highest projected supply in Garden City, West Boise and Central Boise. South Meridian (17 months) and Downtown Boise (20 months) have the lowest projected supply. Construction activity finished the year with just over 400,000 square feet completed. The biggest projects completed this year were Portico (Eagle & Franklin) and Silverstone Plaza (Eagle & Overland).
Industrial Real Estate Review: Vacancy dropped from 11.8% to 11.6% in December, concluding the year with three consecutive months of declining vacancy. Most of this month’s activity occurred in West Boise where Safelite leased 21,000 square feet, ServPro leased 12,000 square feet, and Oregon Tile & Marble will soon occupy a 29,000 square foot building. Vacancy has been trending downward in Southeast Boise (6.1%), and is now at its lowest level since the start of 2009. Both Southwest Boise (20.4%) and Meridian (8.6%) have seen recent increases in vacancy. Despite ending the year with some positive trends, all but three submarkets had negative absorption in 2009. The three areas with positive absorption were Airport, Central, and Southeast.
Retail Real Estate Review: Total vacancy remained at 13.1% for the third consecutive month while Unanchored vacancy also remained flat at 24.5% to end the year. However, vacancy rates within individual submarkets have been more fluid. Dick’s Sporting Goods leased the 52,000 square foot former Joe’s space in Meridian, dropping vacancy in Meridian to 8.0%, its lowest level since 2008. Southwest Boise (11.6%), Eagle (13.6%), and Garden City (22.8%) all saw vacancy rise. Kings closed a 15,000 square foot store in Caldwell, increasing this submarket’s vacancy to 12.5%. Rents continue to decline. Leasing activity steadily increased through 2009, with the number of transactions in the 4th Quarter nearly doubling the 1st Quarter total.
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