Office Real Estate Review: Total vacancy increased slightly from 15.5% to 15.6% and Multi-tenant vacancy decreased slightly from 20.8% to 20.7% in March. This marks the third consecutive month that Multi-tenant vacancy has declined. Total vacancy has been relatively flat for the past 12 months, but absorption was positive in the 1st Quarter (75,000 SF) and there were more transactions in Q1 2011 than in any quarter in 2010. Most recent leasing activity has been in Meridian, where vacancy has declined to 17.5%, the lowest its been since early 2008. Vacancy in Nampa increased to 16.8% after a 10,000 SF medical building on Diamond Street was vacated. Overall projected supply remains nearly three years, but has decreased to two years in Meridian, Eagle, and near the Idaho Center in Nampa.
Industrial Real Estate Review: Vacancy remained flat at 11.2% in March, but Multi-tenant vacancy decreased to 20.5%. Multi-tenant vacancy is at its lowest point since the end of 2008. Mygrant Glass Company leased 39,000 SF near Gowen & Victory, reducing vacancy in the Airport submarket to 6.2%, its lowest level since late 2008. Vacancy also declined in West Boise (15.4%) after a 14,000 SF building leased to United Pipe & Supply. Absorption was slightly negative in the 1st Quarter (-19,000 SF), but vacancy is still lower than it was a year ago. Leasing activity has increased in the Airport submarket, but has tapered off in Nampa, where vacancy reached 19.5% after an additional Lloyd Lumber building was vacated. Nampa vacancy is now the highest of any submarket, surpassing Southwest Boise (19.3%) this month.
Retail Real Estate Review: Total vacancy increased from 12.3% to 12.5%, while Unanchored vacancy declined from 21.6% to 21.3% in March. Unanchored vacancy is at its lowest level since mid-2008. Despite the rise in Total vacancy, the overall trend has been improving over the past two years and the 1st Quarter saw positive absorption (76,000 SF). Meridian has the lowest vacancy of all submarkets at only 6.3%. Vacancy in Nampa (14.3%) has decreased to its lowest point since late 2009 after College of Western Idaho leased a 16,000 SF building originally designed for multi-tenant use. Vacancy is on the rise in Downtown (21.0%), Southeast Boise (15.6%), and North/Garden City (26.9%) where a 60,000 SF space was recently vacated at Glenwood City Centre.
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