In the realm of commercial real estate investment, a pragmatic focus on self-storage markets is gaining traction among discerning investors. The increasing demand for secure, convenient storage solutions nationwide positions this sector as a promising arena for those seeking sustainable returns.

Front and center in this growing market is Star Storage, a self-managed 310-unit facility poised for substantial growth. Recent operational improvements have resulted in an 87% occupancy rate for enclosed units and 61% for RV spaces, highlighting immediate profitability. The facility's strategic location further aligns with economic trends, presenting a noteworthy investment opportunity.

While the past 11 quarters saw positive absorption levels, net absorption ended the third quarter negative for the first time in three years as a number of large retailers went out of business or closed locations. Some of these companies include Reel Theater in North Boise, Rite Aid closing a location in South Meridian, and Trade Viet Grocery going out of business in Southwest Boise. In addition, a limited number of large spaces leased in Q3 with only one transaction absorbed above 10,000 square feet. Net absorption’s annual total still remains positive, but is likely to end lower than both 2022 and 2021’s totals.

Net absorption in Q3 totaled 167,000 square feet, the strongest quarterly net absorption in over a year. Vacancy in the office sector has been steadily rising since last year. Multitenant vacancy rose two percent from the beginning of the year reaching 11.9 percent, the highest it has been since Q1 2021.

Commercial Real Estate Transactions

Subway Real Estate, LLC renewed their 1,781 square feet of retail space in McMillan’s Corner located at 13601 McMillan Road in Boise. JP Green of TOK Commercial represented the landlord.

The Situation
Food Truck Owner Seeks New Restaurant Location

In March 2023, Maggie Thai Kitchen, a healthy Asian-fusion food truck concept that had grown a very successful business with a loyal client base over the past three years, decided to begin searching for a restaurant location to take their operations to the next level.