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Overall supply of office space in the Boise area is within a healthy range (13.4 months), despite the lowest vacancy rates since 2002 (7.23%).  To put it simply, tenants are able to find space within a reasonable time regardless of the tight market.

While the supply is projected to continue its decline, there has been an increase in demand for spaces over 10,000 square feet.  Transactions over 10,000 square feet had a 40% increase from 2017 to 2018, and the demand for these spaces is increasing. 

Boise-based Episciences has built a new skin care facility located at 367 Ancestor Place in Boise. The company is relocating and expanding manufacturing operations from its previous 5,536 square foot building to a new 18,446 square foot facility (read more about the Episciences expansion in the Idaho Business Review). The Episciences building is one of many new industrial projects throughout the Boise Valley.

October's industrial vacancy rate in the South Meridian submarket fell from 16.0% to just 1.3% - the lowest vacancy rate for that area since 2009. The significant drop in vacancy is primarily due to UPS leasing 98,200 square feet in Sunstone Place, located just off Eagle Road, at 2100 S. Silverstone Way. The projected months of industrial supply in the South Meridian submarket now hovers near the 2 month mark and lease rates have remained in the range of $0.65 to $0.75/SF, NNN through 2018.

The overall supply of office space in the Boise area has been steadily declining over the past three years and in September, vacancy rates hit a new 15 year low of 8.13%.  

According to Forbes, Boise is listed #28 on the list of 200 Best Places for Business and Careers.  As the employment rate continues to decrease and more companies open up shop in Boise and the surrounding cities, it is highly likely that office space vacancy will continue to decrease at a proportionate rate.