2018 has been a booming year for commercial construction in Twin Falls. According to The East Idaho Business Journal, the number of new commercial buildings has nearly doubled from 2017. There have been 59 new commercial building permits issued this year with an estimated total value of $63 million.
There’s just something about a downtown culture that can’t be replicated. You can’t plug in a formula and mass produce Boise’s downtown scene anywhere else across the country. This is what makes doing business in a downtown setting so unique and rewarding. A majority of our retailers are local, and a majority of our patrons are loyal to local. This is special and worth protecting while we foster productive growth in our city. We are naturally experiencing a nice balance of local, regional, and national retailers in the downtown core and that’s not by accident.
Aspatore Ventures, a venture capital firm based out of the San Francisco Bay area, has leased a portion of the former Balihoo office in BoDo. The company plans to invest over $100 million through a combined incubator and venture capital operation. The start-ups it plans to finance will bring numerous jobs to all of Idaho. One of its ventures, Execshape, focuses on helping executives manage their health and well-being.
In 2017, Boise’s migration rate was twice that of Seattle’s and three times greater than Denver’s. There is no doubt that Boise is attracting talent, business expansion, and economic investment. While Boise’s growth can create challenges, we are encouraged by the results of a recent City of Boise citizen survey which found that 62% of residents thought that Boise’s growth was positive for the community and 92% believed that Boise’s overall quality of life exceeded or greatly exceeded their expectations. Our thriving community is well aware that we will have to thoughtfully and strategica
The Twin Falls Mall will be opening the doors for its newest retailer, Hobby Lobby, September 24th. The arts and craft store will be taking over the 57,000 square-foot space that previously housed Macy’s. Along with Hobby Lobby, Twin Falls is also welcoming Olive Garden.
Albertsons completed construction on their new 64,600 SF store on Broadway. YTD, the Boise MSA has seen roughly 160,000 SF of completed construction in the retail sector with a projected total of 242,000 SF to be completed by the end of 2018. Our August CRE market newsletter offers additional insight into the retail sector's latest trends.
The local press has also written extensively about the new Albertsons store. You can read their analysis by utilizing the links found below.
The Boise Metro’s office construction total for 2018 has surpassed the total amount of office construction for 2017, and it’s only August.
This year the Boise MSA has already seen 356,000 sq. ft. of office space constructed, compared with 242,000 sq. ft. in all of 2017. It is projected that 450,000 sq. ft. will be constructed in the office market by the end of 2018. This growth in construction is certainly one factor in the lower vacancy rates, as well as the increases in total absorption and the average overall asking rate.
The Boise Valley's Industrial market is very competitive. In fact, not a single Boise Valley submarket posted an increase in Industrial vacancy for the month of July.
Incredibly, of the 15 Boise submarkets that our team tracks, 11 of them actually saw a further decline in Industrial vacancy (from the previous month) and 4 of those submarkets set all-time lows for the vacancy rates recorded.
Plenty of factors are contributing to these market conditions and we believe that the market will continue to be tight, since projected supply has dropped below the 6 month mark.
Boise’s cost of living is a key driver of growth. Historically, the cost of living in Boise has been considerably lower than other regional metro areas, including Seattle, Portland and Salt Lake City. Fortunately, Boise has been able to maintain this affordable cost of living while experiencing significant growth. Attracting and retaining a skilled work force is crucial for community and commercial success. We believe that Boise’s unique ability to grow its talent base while maintaining its fully vibrant lifestyle, at a fraction of the cost of similar metro areas, should be celebrated.