đ National Office Market in Decline (2025)
Recordâhigh demolitions/conversions: In the U.S. office market, office-to-residential conversions and demolitions are outpacing new construction by a wide margin. By the end of 2025, approximately 23.3âŻmillionâŻsf will be removed, compared to only 12.7âŻmillionâŻsf of new office space â the first time in 25 years that teardowns outstrip completions (nypost.com).
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.
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.
Despite other markets seeing vacancy soaring and significantly reduced demand for space, the office sector in the Boise MSA continues to see healthy fundamentals. Overall net absorption remains positive totaling 313,000 square feet and ended the year with the strongest quarter in two years.
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.
Boise Office
250 S 5th Street, 2nd Floor
Boise, Idaho 83702
Main Phone: 208.378.4600
Nampa Office
16150 N. High Desert Street, Suite 200
Nampa, Idaho 83687
Main Phone: 208.378.4600
Twin Falls Office
195 River Vista Place, Suite 204
Twin Falls, Idaho 83301
Main Phone: 208.944.9694
Idaho Falls Office
1135 Pier View Drive, Suite 120
Idaho Falls, Idaho 83402
Main Phone: 208.227.8148
Coeur d'Alene Office
3322 N. Grandmill Lane
Coeur d'Alene, Idaho 83814
Main Phone: 208.449.1908
Spokane Office
717 W. Sprague Ave. Suite 1202
Spokane, Washington 99201
Main Phone: 509.606.5090