Q1 Industrial Total Vacancy Hit A Historic Low Of 1 Percent

Submitted by Marketing Team on Fri, 05/06/2022 - 12:07
Image from our Q2 Industrial Market Video Preview

The beginning of 2022 continued to see strong activity from large industrial users with 25 percent of Q1 deals being over 10,000 square feet. The rise in large deals in addition to limited vacancy has ultimately pushed net absorption to record breaking numbers the past three years as well as sparked bigger speculative developments throughout the valley. Between the years 2015 to 2019, there were five speculative buildings delivered that were over 80,000 square feet. Since 2020, six spec buildings have delivered over 80,000 square feet with an additional 22 buildings currently under construction or planned to be complete by 2023.

Prior to COVID, only a few local developers built the majority of the industrial product in the valley. However since 2020, more national industrial developers have entered the Boise market. A few notable projects these developers currently have under construction or planned include North Ranch Logistics (305,300 SF), Madison Logistics Center (345,000 SF), Fuller84 Business Park (464,500 SF), and Kings Road Commerce Center (362,100 SF). These large developments are anticipated to attract even more large, out of area users to the Boise market resulting in the metro becoming a more competitive alternative to outside regional markets such as Salt Lake City and Reno.

For more information on the current state of the industrial market, you can read our current quarter's Industrial Market Report or subscribe to receive quarterly updates. Connect with us on socials to also stay up to date.

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