A conditional use permit for the nearly 850,000 square foot distribution center has been filed with the City of Nampa. The developer, Panattoni Development Company, Inc., is looking to build this distribution center on the southwest corner of East Franklin Road and Star Road in Nampa. A proposed hearing for the warehouse is on the Nampa Planning & Zoning calendar for Tuesday, July 10th. You can learn more about the project, here.
Retailers in the Karcher/Midland interchange area of Nampa will witness some big changes in the upcoming months. The first major event will be the closure of Nampa’s K-mart this August. K-mart's exit will open up significant opportunities for new tenants looking for space in this growing market. The second event will occur this fall, when construction should be finished on Burlington Coat Factory’s new 40,000 square foot store at Treasure Valley Crossing. Burlington's current big-box space in the Karcher Mall will become available for new tenants looking to land in Nampa's only mall.
Groundbreaking ceremonies for the much anticipated 127,600 square foot Pioneer Crossing office building located at 13th & Front in Downtown Boise took place on June 13th. The project is enjoying strong interest and is expected to be at least 50% leased before its completion in Summer 2019. First Interstate Bank is the first tenant to formally commit to the project.
The Boise MSA's total retail vacancy ticked-up slightly from 8.1% to 8.3% in February however unanchored vacancy decreased from 12.1% to 11.9%. The local retail market is considerably stronger than other markets across the nation where retail product has struggled and vacancies are much higher.
Overall vacancy in the Boise Valley's Industrial market dipped from 3.3% to 3.1% in February while multitenant vacancy actually increased from 8.1% to 8.8%. Industrial's overall vacancy fell for the 6th consecutive month, hitting the most recent low of 3.1%. Notable market movement, included:
Our local economy continues to show no sign of weakening. The commercial real estate office market, a key indicator of business confidence, posted strong numbers in February. Of note, the office market's vacancy rate in the Southwest Boise submarket fell to 4.1%, the lowest point in over 15 years.
The retail market is very competitive in several submarkets throughout the Boise Valley, but none can beat South Meridian. An area of growth which has seen impressive residential real estate activity, new community amenities, and public works projects, South Meridian's total retail vacancy declined to 4.6%, the lowest point on record.
The office market's total vacancy stayed flat at 8.8% in January while multitenant office vacancy decreased from 13.5% to 13.4%. Vacancy in Downtown Boise continued to post decreasing numbers for the third consecutive month, reaching 6.6%, the lowest rate since 2015.
Notable market movement included:
Our analysis for the Industrial market indicates that the Meridian and Caldwell Blvd submarkets reached all-time low vacancy rates in October at 1.7% and 1.6%, respectively.
November's commercial real estate update for the office market in the Boise area has just been released by our research team. Our team of analysts note several interesting items in this month's data, including: an overall uptick in market vacancy, new office construction in South Meridian, and Canyon County's office absorption being led by the Idaho Center submarket.