Retail 2021 Trends — New Construction, New to Boise Tenants, & Tenant Expansion

TOK Commercial's Retail Report for Q1 2021 in the Boise MSA

2020 began with a strong start for the Retail market, posting 166,000 square feet of positive net absorption in the first 90 days. However, along with the pandemic came many business closures and the subsequent two quarters posted negative net absorption. However, a rebound began in Q4, where the market saw over 400,000 square feet of gross absorption, the strongest quarterly activity since 2013. As a result, net absorption finished the year at 191,000 square feet. The number of transactions completed in Q4 was also up 28 percent from its lowest point in Q2.

Buyers Outweigh Listings in the Boise Investment Market

TOK Commercial's Investment Report for Q1 2021 in the Boise MSA

Despite the economic conditions the pandemic created both locally and nationally, Boise’s Investment market ended 2020 with the third strongest transaction volume on record. In addition, the number of off-market deals continues to increase, highlighting that the true value is undoubtedly higher than the year-end investment transaction total of $574 million. Many offerings do not make it to market in this environment where the number of buyers far outweighs the number of listings available.

Industrial & Housing Demands Drive Land Sales, With Development Expected to Increase in 2021

TOK Commercial's Land Report for Q1 2021 in the Boise MSA

Like most sectors, the uncertainty at the onset of the pandemic resulted in a brief slowdown for the commercial land market in early 2020, however, the sector picked back up in the latter half resulting in a year-end total of 345 acres sold and a total consideration of over $68 million.

2020 was a Record-Breaking Year for Industrial, 2021 is Projected to Continue the Trend

TOK Commercial's Industrial Report for Q1 2021 in the Boise MSA

The industrial market had another banner year in 2020, ending the year with record-breaking absorption, construction, and total number of transactions. The most notable project of the year was the 2.6 million square foot Amazon Distribution Center in Nampa, making the company a dominant player in the local industrial market and ultimately creating more economic growth throughout the Treasure Valley.

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