Even with our current economic state, the Boise industrial market remains strong with total number of deals up nearly 5% over the past 12 months.
The North submarket leads the way in industrial activity while Meridian has the highest gross absorption at 178,600 SF. This number is mostly attributed to Gensco occupying their new 68,000 SF space on Lanark.
Overall industrial vacancy has also remained stable at 3.5%, with multitenant vacancy currently at 7.0%.
The past month brought a glimmer of hope for Idaho retailers moving forward. May 1st marked the beginning of Idaho’s Stage 1 of reopening, with many non-essential retailers being allowed to open their doors for the first time in over a month. Stage 2 of reopening began May 16th – allowing for another wave of business owners to open –including dine-in restaurants, salons, and fitness centers. Stage 3 began last week, on May 30th, as most remaining retailers – such as bars and movie theaters – were able to open their doors. Although shopping, entertainment, and services may look different as retailers must still adhere to business protocols – the buzz of excitement is in the air.
Buoyed by positive employment news, TOK Commercial's June 5th data shows that Idaho commercial real estate activity is similarly showing optimistic signs of improvement as evidenced in declining rent relief requests; a gradual resurgence of newly leased space across sectors; and sale transactions spurred by value-add opportunities inherent in market conditions which are evolving, as parties react to changing market metrics. The Idaho Business Review also referenced TOK's "near-real time snapshot of Idaho CRE trends" in an
COVID-19's "New Normal" Evaluated
As we continue to see the market rapidly change due to the effects of COVID-19, we are constantly hearing the question, "What is TOK’s outlook on the future of the real estate market in the Boise MSA?"
TOK's property management portfolio includes nearly 1,000 tenants located across three key Idaho markets (Boise MSA, Magic Valley and Eastern Idaho). Utilizing data from our portfolio, we've been able to gather and analyze the Rent Relief requests that have been submitted to our property managers. The metrics we've collected offer a view to genera
Despite the current COVID-19 pandemic, construction in the Treasure Valley has continued as “essential business”.
Months of supply is strong for the industrial sector with current supply at 6.6 months. All but one submarket are in the healthy range (less than 18 months). For the last two years, industrial months of supply has remained below 8 months. Also of note, total vacancy in the industrial sector remains low at 3.0%, while multitenant vacancy is 8.50%.
In the wake of the COVID-19 pandemic, Idaho retailers are feeling the impact personally. Although Idaho hasn’t enacted a shelter-in-place policy at the time of this post, many cities are starting to mandate social distancing orders which directly impacts restaurants, gyms, retail stores, and more.
In response, retailers are becoming resourceful with many restaurants switching to take-out or delivery, fitness centers adding online fitness videos, and retail stores offering online ordering.