Brownfields Prosthetics recently occupied a new 7,000 SF building in Meridian, where vacancy (18.1%) is at its lowest level since early 2008.
Office Real Estate Review: Total vacancy remained flat at 12.9% and Unanchored vacancy declined from 22.0% to 21.8% in October. This is the lowest Unanchored vacancy has been since mid-2008. Urban Exchange leased 6,700 SF at Overland & Five Mile and Southwest vacancy is now 8.4%, the lowest its been since 2006. Vacancy in Meridian (7.0%) continues to decline as well. Projected supply for the overall market is nearly four years, while Meridian’s supply is now only 15 months. Net absorption remains negative (-17,000 SF), but has improved through the year. Downtown absorption is the lowest, but is mostly the result of Macy’s vacating 118,000 SF. Meridian has seen the highest absorption at over 104,000 SF.
Industrial Real Estate Review: Total vacancy remained flat at 11.8%, but Multi-tenant vacancy surpassed 22% in September. Total vacancy has flattened out after peaking at nearly 12.5% one year ago. Vacancy rates vary by submarket. Canyon County vacancy is nearly 18%, while Meridian vacancy remains less than 8%. Construction of a new 25,000 SF building was recently finished on Pine Avenue in Meridian. All of the space is currently vacant. This is the first industrial spec construction to be completed in 2010. 3rd Quarter absorption was positive (+26,000 SF). Quarterly absorption has not been positive since Q4 2009. Year-to-date absorption remains negative at -123,000 SF.
Retail Real Estate Review: Total vacancy decreased from 13.1% to 12.9% and Unanchored vacancy fell from 22.6% to 22.0% in September. This is the sixth consecutive month that total vacancy has declined and it is now at its lowest level since mid-2009. Construction of a new McDonald’s was finished at Eagle & Ustick in Meridian, where vacancy is 7.1%, the lowest its been since 2007. Other submarkets that have seen a recent drop in vacancy include West Boise (10.1%), Southwest Boise (9.6%), Garden City (21.5%), and South Meridian (17.2%). 3rd Quarter absorption was over 110,000 SF. Year-to-date absorption is still slightly negative (-15,000 SF), but if current trends continue, absorption could be positive by the end of the year.
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