Total vacancy decreased from 15.1% to 15.0%, while Multi-tenant vacancy rose slightly from 20.5% to 20.6% in August. Total vacancy is at its lowest level since mid-2009. Vacancy in Downtown Boise (7.7%) is at its lowest level since early 2009 after a 22,000 SF building on 9th Street was leased. Vacancy in Southwest Boise (18.8%) is at its lowest point since 2007 after Taos expanded into 22,000 SF at Maple Grove & Overland. The average asking rate has declined this year from $14.05 to $14.00 per SF (annual full service), but the average actual rent has increased from $12.40 to $12.90. Projected supply has remained flat at 34 months, but some areas have fared better than the overall market. Projected supply in Eagle has decreased from 25 to 18 months, while supply in Meridian has fallen from 28 to 22 months.
Total vacancy increased from 10.9% to 11.1% in August while Multi-tenant vacancy rose more significantly from 19.7% to 20.3%. The rise is mostly due to spaces vacated in West Boise, where vacancy has increased to 17.7%, its highest recorded level. Vacancy has been declining in many other submarkets, including Eagle (9.4%), Caldwell (14.5%), and Central Boise (7.2%), where Brown Rental recently leased 10,000 SF on Curtis Road. After beginning to level off in 2010, lease rates have declined further in 2011. The average asking rate has slipped from $0.43 to $0.42 per SF (monthly NNN rate), while the average actual rate has fallen from $0.38 to $0.35. Despite the recent rise in vacancy, year-to-date net absorption remains positive (62,000 SF) and projected months of supply has declined this year.
Total vacancy decreased from 11.4% to 11.2%, while Unanchored vacancy remained flat at 20.4% in August. Both Total vacancy and Unanchored vacancy are at their lowest points since 2008. Black Bear Diner leased 7,000 SF at Boise Spectrum and a home decor store leased 8,000 SF at Cole & Ustick. Vacancy rates in West Boise (6.4%) and Southwest Boise (10.0%) are at their lowest levels in over a year. Vacancy is also declining in Garden City (25.3%) and Southeast Boise (14.8%). The average asking rate has declined significantly this year, dropping from $13.95 to $12.50 per SF (annual NNN rate) but the gap between asking rates and actual rents has narrowed to $1.30 per SF, the lowest its been since 2008. Projected supply has decreased from 48 months to 34 months since the start of the year.