Industrial Absorption Highest Since 2007
Total vacancy decreased from 14.6% to 14.1% and Multitenant vacancy fell from 20.3% to 19.4% in October. Total vacancy declined for the fifth consecutive month and is at its lowest point since mid-2009. Absorption has increased for the fourth consecutive quarter and October net absorption (128,000 SF) has already surpassed 3rd Quarter absorption. The decrease in vacancy is mostly due to a number of transactions in Boise Research Center (BRC). Bodybuilding.com will occupy a 100,000 SF building formerly occupied by Extended Systems and Syringa Networks purchased a 48,000 SF building at BRC. Sybase leased 17,000 SF at LaSalle Place. Vacancy in BRC has declined to just 10%, down from nearly 30% a year ago. Vacancy in West Boise (19.3%) is at its lowest point since early 2009.
Total vacancy decreased from 10.7% to 10.4% while Multi-tenant vacancy declined rom 20.2% to 19.9% in October. Total vacancy is at its lowest point since early 2009. Construction was completed on Scentsy’s new 190,000 SF building in Meridian. Vacancy in Meridian (6.6%) is at its lowest point since early 2009. Vacancy in the Airport submarket fell to 5.7% after a 28,000 SF building on Victory Road sold to Critical Systems Inc. and Modern Welding leased 15,000 SF at Airport Distribution Center. Vacancy has also declined in Southeast Boise (6.3%) and Nampa (17.2%). Bolstered by Scenty occupying their new building, year-to-date net absorption is now 447,000 SF, the highest its been since 2007. Nearly 75% of the net absorption has occurred in Meridian.
Total vacancy decreased slightly from 11.0% to 10.9%, and Unanchored vacancy fell from 20.6% to 20.4% in October. Total vacancy has declined for three consecutive months and is at its lowest point since 2008. Anytime Fitness leased 5,200 SF at Eagle Pavilion and vacancy in Eagle (16.5%) is now at its lowest point in over a year. Vacancy is also declining in West Boise (5.7%), Southeast Boise (14.4%), and Meridian (5.7%). Net absorption this year (360,000 SF) is already a huge improvement from 2009 & 2010 and is on pace to surpass 2008 absorption. Most net absorption has occurred in Nampa (248,000 SF) and West Boise (191,000 SF). These two submarkets were the hardest hit areas in 2009.
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