"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.
Idaho Falls brokerage services specialist, Brent Wilson was recently interviewed by the Post Register on the future of vacant retail space in the Eastern Idaho commercial real estate market. In the article, Brent mentions that there is interest in Idaho Falls’ vacant retail space. However, he expects the buildings to be reused in new ways.
“It’s what we call adaptive reuse,” Wilson said. “The businesses are going to be the experiential/entertainment-type of uses, golf simulation for one example. There’s also going to be multiple vocational schools occupying big box buildings.”
The food processing industry continues to grow in the Magic Valley. McCain Foods, the world's largest manufacturer of frozen potato products, recently celebrated the grand opening of their new 259,000 square foot facility in Burley, Idaho. The project began construction in February 2018 and is a roughly a $200 million investment.
The Meridian submarket leads the way for the Treasure Valley’s retail market transactions. Net absorption is the strongest at 21,000 SF with 21 deals occurring YTD.
Projected supply is 15 months, which is within the 6-18 month healthy range. The largest deal YTD occurred when Steelz purchased 2150 Fairview Avenue, occupying 13,200 SF of the building.
Boise is yet again the subject of a national article making the rounds. This time for a slightly different reason. ‘Growing Cities that Work for All’ by the Brookings Institute takes a look at Boise’s growth and mentions areas where change may need to be made if we keep on our current pace. Education, wage growth, and industry diversification top the list of areas Brookings noted.