The National Association of REALTORS® recently released a report of the Top Ten Markets During and in a Post-COVID Environment in 2021-2022. Among major metro areas such as Atlanta, Dallas, Phoenix, and Provo, Boise carved its place into the Top Ten list - showing resilience during the pandemic and forecasted for continued high performance in a post-COVID-19 environment.
The Idaho Business Review highlighted TOK's Market Health data in a recent article addressing what has now become a commonplace topic - Idaho's incredible in-migration which is driving population growth at a rate three times the national average.
The Situation: Seeking a Second Location for Restore
- Restore, a hyper wellness company offering services such as IV Drip Therapy, Cryotherapy and Hyperbaric Oxygen Therapy, recently opened their first Treasure Valley location at The Village at Meridian.
- With a strong first location opening, the owner of Restore Meridian was looking to expand their storefronts in Boise.
As the construction of the 11th & Idaho office building quickly progresses, anticipation abounds as the project is slated to welcome office tenants by year's end.
ABEL Corporation USA leased 11,250 square feet of industrial space in Airport Distribution Center, located at 1049-1077 Boeing Street in Boise. Mike Greene, Peter Oliver, Dan Minnaert, and Devin Pierce of TOK Commercial facilitated the transaction.
Ancestor Investments, LLC purchased a 29,055 square foot industrial building located at 330 N. Ancestor Place in Boise. Gavin Phillips of TOK Commercial facilitated the transaction.
208 Moving, LLC renewed their 1,008 square feet of office space in Flex Work Space, located at 6052 W. Corporal Lane in Boise. Chris Pearson and Nick Schuitemaker of TOK Commercial facilitated the transaction.
Spikes in sublease space are occurring in metros from New York City to Chicago, Seattle, San Francisco and now, Boise. While retail, flex and industrial sublease space is being delivered to the market, much of the Boise MSA sublease space is located in office properties.
The retail industry saw the largest impact from COVID-19, but in the Boise MSA that impact is still only minimal thus far.
Net absorption decreased in Q2 but still ended the quarter in positive territory (131,000 square feet), compared to negative absorption (-320,000 square feet) a year ago.
Despite a worldwide pandemic, the Boise MSA’s office market has thus far experienced a milder impact than expected.
Net absorption ended Q2 at 243,000 square feet, a moderate decrease compared to 12 months ago (290,000 square feet), but still higher than the first half of both 2016 & 2017. Overall vacancy decreased from 5.8 percent at the end of 2019 to a current all-time low of 5.2 percent.