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2018 was a good year for office construction, which experienced an increase of 62,000 more square feet than in 2017.  The top 3 projects contributing to this increase were 27,500 SF at 3302 Valencia Dr. (Bingham Memorial Hospital); 22,973 SF at 1460 Elk Creek Dr. (Connections Therapy); and 35,000 SF at 1207 S. 25^th (CAL Ranch). 

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 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.

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.