The coronavirus pandemic has impacted all aspects of life including how businesses operate. One question that keeps coming up is “How will office space be impacted?”
The Boise MSA has become a staple of national Best Places to Live lists lauding the area's many amenities - accessibility, affordability, safety and outdoor lifestyle. Recently, Livability wrote two articles related to Boise's appeal and offering their estimations of what the future might hold.
Even with our current economic state, the Boise industrial market remains strong with total number of deals up nearly 5% over the past 12 months.
The North submarket leads the way in industrial activity while Meridian has the highest gross absorption at 178,600 SF. This number is mostly attributed to Gensco occupying their new 68,000 SF space on Lanark.
Overall industrial vacancy has also remained stable at 3.5%, with multitenant vacancy currently at 7.0%.
The past month brought a glimmer of hope for Idaho retailers moving forward. May 1st marked the beginning of Idaho’s Stage 1 of reopening, with many non-essential retailers being allowed to open their doors for the first time in over a month. Stage 2 of reopening began May 16th – allowing for another wave of business owners to open –including dine-in restaurants, salons, and fitness centers. Stage 3 began last week, on May 30th, as most remaining retailers – such as bars and movie theaters – were able to open their doors. Although shopping, entertainment, and services may look different as retailers must still adhere to business protocols – the buzz of excitement is in the air.
Despite the current COVID-19 pandemic, construction in the Treasure Valley has continued as “essential business”.
Months of supply is strong for the industrial sector with current supply at 6.6 months. All but one submarket are in the healthy range (less than 18 months). For the last two years, industrial months of supply has remained below 8 months. Also of note, total vacancy in the industrial sector remains low at 3.0%, while multitenant vacancy is 8.50%.
In the wake of the COVID-19 pandemic, Idaho retailers are feeling the impact personally. Although Idaho hasn’t enacted a shelter-in-place policy at the time of this post, many cities are starting to mandate social distancing orders which directly impacts restaurants, gyms, retail stores, and more.
In response, retailers are becoming resourceful with many restaurants switching to take-out or delivery, fitness centers adding online fitness videos, and retail stores offering online ordering.