Why Commercial Real Estate is Booming in Boise

Submitted by Marketing Team on Thu, 05/26/2022 - 10:25
Why Commercial Real Estate is Thriving in Boise, Idaho

 

Why is commercial real estate in Boise booming?

Any conversation about Boise inherently involves the word “growth”. The pandemic boosted growth in the Boise Valley and also in the entire state of Idaho. As Boise's demographic growth continues, so does the area's commercial real estate market.

1. Residential Real Estate Boom

Boise, Idaho's rapid growth is attracting a wide variety of people from tech workers no longer tethered to a specific geographic location to do their work, to millennials in search of an outdoor lifestyle that is family-friendly, and retirees looking to grow their investments while living in an amenities-rich environment. Boise experienced heavy inbound migration after the on-set of the pandemic, with United Van Lines recording a 60 percent inbound move percentage. Zillow reports Boise ranking high for the number of available rental units, which provides options for those looking to relocate to a new area. Zillow also ranked Boise as a top mid-sized metro to watch. Local home values are very strong and continue to rise, with an expected 3.3% growth into the next year. As cities across Idaho continue to boom, some of the biggest metro areas in the nation (Los Angeles and New York City) lost more residents than anywhere else.

2. Commercial Real Estate Demand & Tight Vacancies

The residential real estate boom also impacted the Boise Valley's commercial real estate market. Multifamily sales volume exploded in 2021, with 84 percent of the deals occurring in Ada County.  TOK Commercial’s Q2 2022 Industrial Market Report reveals that total industrial vacancy hit a historic low of 1.0 percent, demonstrating Boise’s ability to attract manufacturing, logistics, warehousing and flex users. The influx of new business has created exceptionally low vacancies, making the market highly competitive and challenging to secure good, functional space. In response, more national industrial developers entered the Boise Market. A few of the notable projects that these developers currently have under construction include North Ranch Logistics (305,300 SF) and Fuller84 Business Park (464,500+ SF). These large developments are anticipated to attract even more large, out-of-area users to the metro, becoming a highly competitive alternative to Salt Lake City or Reno.

 

3. Top Best Places To Live Lists

The Boise Valley is frequently lauded as a great place to live, due to its low crime rate and abundance of outdoor recreation. A recent ranking by U.S. News identifies Boise as the 13th best place to live in the U.S. in 2021. As one of the fastest growing states in the country, Idaho as a whole is booming with new activity. Multifamily land in Ada County has seen increasing sales volume year over year. This can be attributed to the countless amenities that Boise has to offer, such as its four seasons, great economic opportunities, and outdoor lifestyle which includes hiking, mountain biking, snow and water skiing, fishing, and running.

 

4. Booming Boise

Commercial Real Estate is thriving in Boise due to many factors. As single family residential real estate flies off the shelves, so too does commercial real estate. Investment opportunities for office, industrial and retail properties are snapped up before they hit the market. New businesses are opening daily and vacancy rates for restaurants, professional office space, warehouse space and retail storefronts are very tight. The Boise Valley is not only home to Boise but also the surrounding cities of Meridian, Eagle, Star, Kuna, Middleton, Nampa, and Caldwell. Boise is the capital of Idaho, and also serves as Idaho's center of commerce, politics, population, cultural events, and the blue field that personifies the Boise State Broncos. Although Idaho is famous for a vibrant agricultural market, and is nationally known for its potatoes, the state has an equally vibrant economic environment for high-tech, healthcare, education, transportation, service, tourism, and retail industries. Many nationally and globally recognized corporations have a home in the valley including Micron Technology, Hewlett Packard, Fred Meyer, Albertsons, J.R. Simplot Company, LambWeston, and many others. To keep current with commercial market trends, subscribe to receive quarterly market updates.

Five Locations to Serve You

Boise Office
250 S 5th Street, 2nd Floor
Boise, Idaho 83702
Main Phone: 208.378.4600
Main Fax: 208.947.0869

Twin Falls Office
195 River Vista Place, Suite 204
Twin Falls, Idaho 83301
Main Phone: 208.944.9694

Idaho Falls Office
1135 Pier View Drive, Suite 140
Idaho Falls, Idaho 83402
Main Phone: 208.227.8148

Pocatello Office
151 N. 3rd Street
Pocatello, Idaho 83201
Main Phone: 208.227.8148

Coeur d'Alene Office
PO Box 663
Coeur d'Alene, Idaho 83816
Main Phone: 208.378.4600