The market for development land in Twin Falls continues to enjoy strong interest. As the entire Magic Valley region has been the subject of attention by national corporations (Chobani, Clif, Jayco, Glanbia...), the demand for development land has risen dramatically. In fact, land prices within the city of Twin Falls seem to be keeping pace with those in the Boise Valley. A combination of factors are contributing to these market conditions, including: scarcity of land, population growth, appraisal values, proximity to new industry and investor interest. The Idaho Business Review recently
As mentioned previously, the positive national attention that Boise has recently received spurred us to reflect on Boise’s past, present and future. As we compare Boise’s growth through the 1990s (when we began our commercial real estate practice in Idaho) with current trends, we continue to be optimistic about both the business environment and the sustained quality of life here in the Boise Valley.
If you haven’t heard, Boise is garnering significant positive attention from the national press. The Boise MSA is consistently considered to be a preferred destination for its business environment and quality of life. All of these accolades have spurred growth and given us an opportunity to pause and consider how today’s trends compare to those of the area in the early 1990s.
Over the next few weeks, we’ll share an interesting data point from today’s news and compare it with what life was like in the Boise Valley 25 years ago.
A conditional use permit for the nearly 850,000 square foot distribution center has been filed with the City of Nampa. The developer, Panattoni Development Company, Inc., is looking to build this distribution center on the southwest corner of East Franklin Road and Star Road in Nampa. A proposed hearing for the warehouse is on the Nampa Planning & Zoning calendar for Tuesday, July 10th. You can learn more about the project, here.
Retailers in the Karcher/Midland interchange area of Nampa will witness some big changes in the upcoming months. The first major event will be the closure of Nampa’s K-mart this August. K-mart's exit will open up significant opportunities for new tenants looking for space in this growing market. The second event will occur this fall, when construction should be finished on Burlington Coat Factory’s new 40,000 square foot store at Treasure Valley Crossing. Burlington's current big-box space in the Karcher Mall will become available for new tenants looking to land in Nampa's only mall.
Groundbreaking ceremonies for the much anticipated 127,600 square foot Pioneer Crossing office building located at 13th & Front in Downtown Boise took place on June 13th. The project is enjoying strong interest and is expected to be at least 50% leased before its completion in Summer 2019. First Interstate Bank is the first tenant to formally commit to the project.
The Boise MSA's total retail vacancy ticked-up slightly from 8.1% to 8.3% in February however unanchored vacancy decreased from 12.1% to 11.9%. The local retail market is considerably stronger than other markets across the nation where retail product has struggled and vacancies are much higher.
Overall vacancy in the Boise Valley's Industrial market dipped from 3.3% to 3.1% in February while multitenant vacancy actually increased from 8.1% to 8.8%. Industrial's overall vacancy fell for the 6th consecutive month, hitting the most recent low of 3.1%. Notable market movement, included: