The National Association of REALTORS® recently released a report of the Top Ten Markets During and in a Post-COVID Environment in 2021-2022. Among major metro areas such as Atlanta, Dallas, Phoenix, and Provo, Boise carved its place into the Top Ten list - showing resilience during the pandemic and forecasted for continued high performance in a post-COVID-19 environment.
The Idaho Business Review highlighted TOK's Market Health data in a recent article addressing what has now become a commonplace topic - Idaho's incredible in-migration which is driving population growth at a rate three times the national average.
The Situation: Seeking a Second Location for Restore
- Restore, a hyper wellness company offering services such as IV Drip Therapy, Cryotherapy and Hyperbaric Oxygen Therapy, recently opened their first Treasure Valley location at The Village at Meridian.
- With a strong first location opening, the owner of Restore Meridian was looking to expand their storefronts in Boise.
As the construction of the 11th & Idaho office building quickly progresses, anticipation abounds as the project is slated to welcome office tenants by year's end.
The retail industry saw the largest impact from COVID-19, but in the Boise MSA that impact is still only minimal thus far.
Net absorption decreased in Q2 but still ended the quarter in positive territory (131,000 square feet), compared to negative absorption (-320,000 square feet) a year ago.
Even as the stock market posts record-setting gains, TOK Commercial’s most recent data points to impressive gains for both sales and leasing activity in commercial real estate markets across Idaho. While the trends are very encouraging, they also pose nuanced complexities that commercial real estate participants are grappling with.
Despite a worldwide pandemic, the Boise MSA’s office market has thus far experienced a milder impact than expected.
Net absorption ended Q2 at 243,000 square feet, a moderate decrease compared to 12 months ago (290,000 square feet), but still higher than the first half of both 2016 & 2017. Overall vacancy decreased from 5.8 percent at the end of 2019 to a current all-time low of 5.2 percent.
While the past few months have created major setbacks and challenges for most cities' economies, Idaho Falls has proven to have a recipe for economic stability despite the pandemic.
Although retail vacancy has seen a slight up-tick since Idaho’s economic shutdown, Total Vacancy (8.4%) in the Boise MSA is still lower than it was this time last year and Unanchored Vacancy (7.23%) is just slightly above the 20-year record low of 6.2% reached this March.