The Situation: Innovative eatery concept targets Boise MSA
Industrial vacancy in the Airport submarket, one of the most active industrial areas in Boise, hit 1.04% in August. This is the submarket’s lowest vacancy rate on record.
Along with low vacancy, the submarket has only 1.4 months of supply and has reached nearly 300,000 square feet of net absorption so far this year.
Most of 2019’s largest industrial deals have occurred in the Airport submarket, including Solitco's leasing of the former Shopko distribution center (347,000 SF) and Western Power Sports' expansion of their facility by 105,000 SF.
The Situation: Rebranded company seeks greater exposure
- After calling on one of JP Green’s listed properties, the owner of J.Oates Portrait Design expressed interest in engaging JP as a tenant rep in the company’s search for a high visibility retail location.
- As a result of an extensive rebranding initiative, J.Oates was seeking to expand the physical size of their studio while also garnering critical exposure for their new brand which was strategically positioned as a high-end professional portrait studio.
The Magic Valley Mall is welcoming national retailer Kohl’s. The department store will be taking over the 68,700 square foot space that previously housed Sears. The parking lot and interior of the space are currently under construction. With Shopko’s recent closure, Kohl’s announcement signals a bright future for the mall and is expected to attract more shoppers.
Unsurprisingly, 2019 Retail net absorption has been heavily impacted by the three Shopko (285,400 SF total) and one Sears (120,800 SF) store closures. These combined closures have put the Retail market on pace for its lowest absorption since 2009 and net absorption could remain negative throughout 2019 unless some of these recent big-box vacancies are able to backfill. Additional big-box closures have not been announced, so total vacancy will likely remain steady throughout the remainder of the year.
"New data shows that more retailers are opening more stores than are closing them." ICSC just released a report by the IHL Group, that reviewed 1,660 national retail chains and that finds "roughly five retail chains are opening stores for every single retailer that is closing them this year... The firm also reports that the number of chains adding stores in 2019 has increased by 56 percent, while the number of chains closing them has decreased by 66 percent."
Don Day at BoiseDEV recently authored a significant "deep dive" article exploring Boise's options to best optimize future growth, titled "Where will Boise grow? Ownership, geography, affordability drive future plans."
The piece offers thoughtful insight into a myriad of considerations that impact Boise's present and future development. Interesting points made by the article include:
In an effort to evaluate the labor-market and general economic health for all the states and the District of Columbia, the Business Insider recently analyzed states' unemployment rate, job growth, per-capita GDP, GDP growth, average weekly wages, and wage growth.
The Shopko on 17th Street in Idaho Falls officially closed its doors last month. The former big-box retailer vacated over 90,000 square feet, driving up overall retail vacancy to 8.76%, the highest it’s been in 12 months.
Retail construction in the Treasure Valley has been minimal this year with the only active sector being single-tenant pad buildings. As construction costs continue to increase, many developers have found that single-tenant buildings (with a tenant in-tow) present far less risks than spec construction.
New single-tenant pads include O’Reilly off of Idaho Center Blvd., Del Taco in Caldwell, and PIVOT Lifestyle + Fitness Center at Ten Mile Crossing.