November's commercial real estate update for the office market in the Boise area has just been released by our research team. Our team of analysts note several interesting items in this month's data, including: an overall uptick in market vacancy, new office construction in South Meridian, and Canyon County's office absorption being led by the Idaho Center submarket.
MSN recently produced an article detailing the 50 safest cities in the world. They used data that was mined by Numbeo in order to find vacation spots where you're least likely to encounter crime. Nobody wants to have their pocket picked on vacation! Those of us living in Boise is not surprised at all by their findings.
Boise, Idaho came in at #8 on the list of 50. It was one of only two US cities to make the list. (The other US city was Salt Lake City, UT - #49.) If you're curious, the #1 honor went to Abu Dhabi in the United Arab Emirates.
Ahrens DeAngeli Law Group, LLP renewed their office space in C.W. Moore Plaza in Boise, ID. Karena Gilbert and Patrick Shalz, SIOR of Thornton Oliver Keller facilitated the transaction.
The Cabinet Makers leased 2,239 square feet of industrial space in I-84 Industrial Park located at 1428 Madison Street in Nampa, ID. Chris Pearson, SIOR, Devin Pierce, SIOR of Thornton Oliver Keller and Brian Watt of Rocky Mountain Management and Development Company facilitated the transaction.
September 2017's office market statistics are encouraging.
The analysts in our market research team just released the results for the 2017 September market and they're very positive. Total office vacancy decreased from 9.0% to 8.9% which indicates that the office market continues to show movement in the same direction as the rest of the nation. Additionally, multitenant vacancy remained flat at 13.3%. Office users throughout southwest Idaho continue to enjoy the option of choosing from a variety of well designed, easily accessible space in some of the market's top locations.
Vacancy reached its highest point in over five years this April at 9.5 percent but dropped to 8.6 percent due to a few large vacancies being filled. Most of these transactions involved strong regional retailers: Albertsons announced they will occupy the former Shopko space in Meridian and D&B Supply leased the former Hastings/Sports Authority at Eastgate Shopping Center. Over 55,000 square feet will be occupied by multiple retailers, including Ace Hardware, in a former KMart at Fairview & Five Mile.
Lease rates must continue their steady increase to support new development. Rent increases which have traditionally averaged 3 percent per year are expected to increase even further for the near future, especially in small space units. Due to the tight market, concessions such as free rent will also be limited. Tenants must be flexible in this market and be prepared to compromise on everything from location to size.
Boise Office
250 S 5th Street, 2nd Floor
Boise, Idaho 83702
Main Phone: 208.378.4600
Nampa Office
16150 N. High Desert Street, Suite 200
Nampa, Idaho 83687
Main Phone: 208.378.4600
Twin Falls Office
195 River Vista Place, Suite 204
Twin Falls, Idaho 83301
Main Phone: 208.944.9694
Idaho Falls Office
1135 Pier View Drive, Suite 120
Idaho Falls, Idaho 83402
Main Phone: 208.227.8148
Coeur d'Alene Office
3322 N. Grandmill Lane
Coeur d'Alene, Idaho 83814
Main Phone: 208.449.1908
Spokane Office
717 W. Sprague Ave. Suite 1202
Spokane, Washington 99201
Main Phone: 509.606.5090