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:
Our local economy continues to show no sign of weakening. The commercial real estate office market, a key indicator of business confidence, posted strong numbers in February. Of note, the office market's vacancy rate in the Southwest Boise submarket fell to 4.1%, the lowest point in over 15 years.
The retail market is very competitive in several submarkets throughout the Boise Valley, but none can beat South Meridian. An area of growth which has seen impressive residential real estate activity, new community amenities, and public works projects, South Meridian's total retail vacancy declined to 4.6%, the lowest point on record.
The office market's total vacancy stayed flat at 8.8% in January while multitenant office vacancy decreased from 13.5% to 13.4%. Vacancy in Downtown Boise continued to post decreasing numbers for the third consecutive month, reaching 6.6%, the lowest rate since 2015.
Notable market movement included:
Our analysis for the Industrial market indicates that the Meridian and Caldwell Blvd submarkets reached all-time low vacancy rates in October at 1.7% and 1.6%, respectively.
November's commercial real estate update for the office market in the Boise area has just been released by our research team. Our team of analysts note several interesting items in this month's data, including: an overall uptick in market vacancy, new office construction in South Meridian, and Canyon County's office absorption being led by the Idaho Center submarket.
MSN recently produced an article detailing the 50 safest cities in the world. They used data that was mined by Numbeo in order to find vacation spots where you're least likely to encounter crime. Nobody wants to have their pocket picked on vacation! Those of us living in Boise are not surprised at all by their findings.
Boise, Idaho came in at #8 on the list of 50. It was one of only two US cities to make the list. (The other US city was Salt Lake City, UT - #49.) If you're curious, the #1 honor went to Abu Dhabi in the United Arab Emirates.
The Cabinet Makers leased 2,239 square feet of industrial space in I-84 Industrial Park located at 1428 Madison Street in Nampa, ID. Chris Pearson, SIOR, Devin Pierce, SIOR of Thornton Oliver Keller and Brian Watt of Rocky Mountain Management and Development Company facilitated the transaction.
September's office market statistics are encouraging.
The analysts in our market research team just released the results for the 2017 September market and they're very positive. Total offfice vacancy decreased from 9.0% to 8.9% which indicates that the office market continues to show movement in same direction as the rest of the nation. Additionally, multitenant vacancy remained flat at 13.3%. Office users throughout southwest Idaho continue to enjoy the option of choosing from a variety of well designed, easily accessible space in some of the market's top locations.
Vacancy reached its highest point in over five years this April at 9.5 percent but dropped to 8.6 percent due to a few large vacancies being filled. Most of these transactions involved strong regional retailers: Albertsons announced they will occupy the former Shopko space in Meridian and D&B Supply leased the former Hastings/Sports Authority at Eastgate Shopping Center. Over 55,000 square feet will be occupied by multiple retailers, including Ace Hardware, in a former KMart at Fairview & Five Mile.