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Industrial Market Welcomes Ravenswood Solutions

Ravenswood Solutions opens in Boise Idaho

A new company is coming to the Boise market. Ravenswood Solutions, a California-based company that specializes in GPS-based mobile instrumentation systems for the military, is expanding its operations to the Airport submarket, where industrial vacancy is currently 2.6%.

The company is moving into 105,000 square feet of industrial space at 645 East Gowen Road and plans to use the facility to maintain and test equipment. Tenant improvements at the site are currently underway.  Ravenswood Solutions expects to be hiring throughout 2019.

Evaluating the "Shopko Effect"

Shopko Fairview and Milwaukee Boise Idaho

The overall retail vacancy has oscillated in the mid-7 to mid-8 percentage range for the last 2 years. However, the next two months will witness large back-to-back vacancy increases with the closure of the three Treasure Valley Shopko sites. The 95,000 SF Shopko on Fairview will close this March.  In April, the Nampa and Broadway Shopkos are also expected to close, totaling 191,000 SF.

In addition to increasing the vacancy rate, these large vacancies will also dramatically decrease net absorption which is currently -83,000 SF for 2019.

Industrial Net Absorption Hits Record-High

Industrial space for lease in Boise Idaho

Industrial net absorption ended 2018 at a record high level of nearly 1.4 million square feet, up 39 percent from 2017. As a result, vacancy ended the year at 2.9 percent. Many large move-ins occurred in 2018 including, Fresca Foods occupying 183,000 SF in Caldwell and FedEx leasing a newly constructed 237,000 SF building in the Airport submarket. The Airport submarket was the strongest market in 2018 and accounted for nearly 30% of total net absorption.

Office Space Design Driven By Demand

Overall supply of office space in the Boise area is within a healthy range (13.4 months), despite the lowest vacancy rates since 2002 (7.23%).  To put it simply, tenants are able to find space within a reasonable time regardless of the tight market.

While the supply is projected to continue its decline, there has been an increase in demand for spaces over 10,000 square feet.  Transactions over 10,000 square feet had a 40% increase from 2017 to 2018, and the demand for these spaces is increasing. 

Looking Toward the Future

Boise MSA Retailers

National tenants are expected to continue popping up in the Valley as local population growth and Boise’s accumulation of national accolades and attention are piquing the interest of out-of-state retailers. Multiple planned projects are on the horizon with the possibility of breaking ground in 2019 or 2020 - including Costco at Chinden & Ten  Mile, Winco at Linder Village, and Winco on Overland.

Episciences Finishes New Manufacturing Facility

Episciences building Boise Idaho

Boise-based Episciences has built a new skin care facility located at 367 Ancestor Place in Boise. The company is relocating and expanding manufacturing operations from its previous 5,536 square foot building to a new 18,446 square foot facility (read more about the Episciences expansion in the Idaho Business Review). The Episciences building is one of many new industrial projects throughout the Boise Valley.

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