The Commercial land market in the Boise MSA has benefitted from the stabilization of economic conditions and is faring better in 2024 than it was a year ago when uncertainty caused developers to put a pause on acquisitions. The number of reported commercial land transactions was up over 50 percent from the first four months of 2023. Industrial land continues to be of particular interest with consideration from the last 12 months up over 65 percent from the previous 12 months. Consideration for retail land increased during this time as well, up 28 percent. As for the office sector, land consideration has remained relatively flat with most interest by owner users.

High economic uncertainty resulted in the multifamily investment market seeing a major shift in 2023 compared to previous record breaking years. Based on disclosed transactions, only 10 multifamily properties traded in 2023 which is down 55 percent from 2022. Prices were up slightly from 2022, with the median price per door in Ada County reaching $288,798 and $251,902 in Canyon County. Three of the six transactions in Ada County sold above $300,000 per door. Two of these deals went under contract during the peak of 2022, but extended due diligence pushed the closings into 2023. Based on available listings, the start of 2024 has seen a significant decline in pricing with the median price per door in both Ada and Canyon County at $200,000.

The Office market slowed in Q1 with the number of transactions down 4 percent from Q1 2023. Lease rates and vacancy remained healthy in the first quarter of the year. Overall average lease rates held at $20.50 per square foot (FLSV, Annual) while average Class A rates jumped 3 percent from Q4 to $24.75.

TOK's latest outlook for Eastern Idaho's commercial real estate market highlights important trends for office, industrial, retail and investment properties in 2024. 

Office

The strong organic growth the area has seen will likely continue to drive the demand for future office space. Over half of transactions in 2023 were with tenants opening additional locations, expanding their space, or local tenants starting new businesses

Industrial

Spec development is expected to slow slightly with only a handful of projects slated to deliver in 2024. One notable construction project is Idaho Falls Business Park, where 122,600 square feet is expected to deliver