Current commercial real estate trends for the Magic Valley market, including: Twin Falls, Jerome, Heyburn, and the southern Idaho market. This Q4 report includes market trends for office, retail, industrial, and land submarkets.
What are current office market trends?
Regarding office vacancy, the total has decreased from 6.5% to 1.8% over the past year - staying relatively flat since June. Vacancy in multitenant offices has decreased from 4.3% to 2.4% over the past year. As for absorption, the gross absorption rose to 130,200 SF while overall office net absorption is currently at 70,500 SF. Twin Falls’ Canyon market holds the three largest deals of 2022 and a gross absorption of 58,300 SF.
What are current industrial market trends?
In the Magic valley, Jerome holds both the highest vacancy rate, at 4.3%, and the highest absorption with 84,000 SF. The total industrial vacancy has decreased from 0.5% to 0.3% over the past 12 months, whereas, multitenant vacancy has increased to 2.6% from the 2.4% reported last year. The overall net absorption stands at 91,500 SF with a gross absorption at 163,200 SF. Northbridge Junction, in Jerome, has the two largest industrial deals of 2022.
What are current retail market trends?
Over the past 12 months, the total vacancy for the retail market has decreased by nearly 3% from 6.6%, currently at 3.7%. The unanchored vacancy has dropped to 3.7% from 5.9% within the past year. The gross retail absorption is currently at 189,700 SF, while the net absorption is at 58,100 SF. Downtown Twin Falls has the highest net absorption of all submarkets through October 2022.
What are current trends in the land market?
Commercially, the total number of permits has dropped by 58% compared to November 2021, while the value of said permits is down by 69%. The total number of permits for single families is down 56%, whereas the value has decreased by 49%. In the past year, 98 residential acres have been sold; similarly, the total number of commercial acres sold is 98 AC.