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Evaluating the "Shopko Effect"

Posted by Research Team on
Shopko Fairview and Milwaukee Boise Idaho

The overall retail vacancy has oscillated in the mid-7 to mid-8 percentage range for the last 2 years. However, the next two months will witness large back-to-back vacancy increases with the closure of the three Treasure Valley Shopko sites. The 95,000 SF Shopko on Fairview will close this March.  In April, the Nampa and Broadway Shopkos are also expected to close, totaling 191,000 SF.

In addition to increasing the vacancy rate, these large vacancies will also dramatically decrease net absorption which is currently -83,000 SF for 2019.

Industrial Net Absorption Hits Record-High

Posted by Research Team on
Industrial space for lease in Boise Idaho

Industrial net absorption ended 2018 at a record high level of nearly 1.4 million square feet, up 39 percent from 2017. As a result, vacancy ended the year at 2.9 percent. Many large move-ins occurred in 2018 including, Fresca Foods occupying 183,000 SF in Caldwell and FedEx leasing a newly constructed 237,000 SF building in the Airport submarket. The Airport submarket was the strongest market in 2018 and accounted for nearly 30% of total net absorption.

Office Space Design Driven By Demand

Posted by Research Team on
Demand drive the design of this office space

Overall supply of office space in the Boise area is within a healthy range (13.4 months), despite the lowest vacancy rates since 2002 (7.23%).  To put it simply, tenants are able to find space within a reasonable time regardless of the tight market.

While the supply is projected to continue its decline, there has been an increase in demand for spaces over 10,000 square feet.  Transactions over 10,000 square feet had a 40% increase from 2017 to 2018, and the demand for these spaces is increasing. 

Looking Toward the Future

Posted by Research Team on
Boise MSA Retailers

National tenants are expected to continue popping up in the Valley as local population growth and Boise’s accumulation of national accolades and attention are piquing the interest of out-of-state retailers. Multiple planned projects are on the horizon with the possibility of breaking ground in 2019 or 2020 - including Costco at Chinden & Ten  Mile, Winco at Linder Village, and Winco on Overland.

Episciences Finishes New Manufacturing Facility

Posted by Research Team on
Episciences building Boise Idaho

Boise-based Episciences has built a new skin care facility located at 367 Ancestor Place in Boise. The company is relocating and expanding manufacturing operations from its previous 5,536 square foot building to a new 18,446 square foot facility (read more about the Episciences expansion in the Idaho Business Review). The Episciences building is one of many new industrial projects throughout the Boise Valley.

Industrial Vacancy in South Meridian Hits Ten Year Low

Posted by Research Team on
Sunstone Place Industrial space Meridian Idaho

October's industrial vacancy rate in the South Meridian submarket fell from 16.0% to just 1.3% - the lowest vacancy rate for that area since 2009. The significant drop in vacancy is primarily due to UPS leasing 98,200 square feet in Sunstone Place, located just off Eagle Road, at 2100 S. Silverstone Way. The projected months of industrial supply in the South Meridian submarket now hovers near the 2 month mark and lease rates have remained in the range of $0.65 to $0.75/SF, NNN through 2018.

Unanchored Retail Vacancy Reaches a 13-Year Low

Posted by Research Team on
Northpointe Retail center in Meridian Idaho leased

Vacancy in Treasure Valley strip centers reached a 13-year low in October when the overall vacancy rate hit 10.7%. This is a significant decrease from rates during the peak of the recession, when over 25% of strip center space was vacant. Examples of new strip centers which are leasing quickly (in some cases before construction has even been completed), include Northpointe Retail in Meridian, Treasure Valley Pointe in Nampa, and 4363 Gray Fox in Eagle.

Available Office Space Tightens

Posted by Research Team on
Boise Idaho office space supply decreasing

The overall supply of office space in the Boise area has been steadily declining over the past three years and in September, vacancy rates hit a new 15 year low of 8.13%.  

According to Forbes, Boise is listed #28 on the list of 200 Best Places for Business and Careers.  As the employment rate continues to decrease and more companies open up shop in Boise and the surrounding cities, it is highly likely that office space vacancy will continue to decrease at a proportionate rate.   

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