Boise Commercial Real Estate Market in High Gear According to Cushman & Wakefield/Commerce 2016 Mid-Year Report
BOISE, IDAHO, Aug. 23, 2016 – According to Cushman & Wakefield/Commerce’s 2016 Mid-Year report, Treasure Valley’s office, retail and industrial markets were in extreme high demand. Each market saw a decrease in vacancy and demand was far out pacing supply for quality product. The Boise economy continued to perform well, reflecting a strong commercial real estate market.
“At mid-year, the Boise commercial real estate market is seeing strong demand for office, retail and industrial space,” said Peter O’Brien, Director at the Cushman & Wakefield/Commerce Boise office. “The combination of growth by local businesses in addition to interest from out-of-state companies looking at the Treasure Valley for expansion or relocation opportunities will continue to drive activity.”
With a lack of inventory in Downtown Boise, the demand for office space remained high. Product that becomes available is quickly absorbed for existing product and pre-leased for new construction. Vacancy rate decreased to 10.4 percent in Southwest Boise when The Internet Truckstop, LLC leased 15,500 square feet at the Stevens-Henager Building. Construction is set to break ground during Q3 2016 as Brighton Corporation and Ameriben both announced plans for new corporate headquarters on a new 300 acre campus off Ten Mile Road in Meridian. With the completion of City Center Plaza and the new Simplot Headquarters in Q3 2016, we anticipate continued tightening and vacancy should continue to decline for the second half of 2016. For the full report, please visit: http://www.comre.com/uploads/reports/p1aq07eh2q16k31qtp2cmvf8vfn3.pdf
For the seventh consecutive year in a row, Downtown Boise retail openings succeeded closings with 24 openings in 2015. The Village at Meridian announced the addition of 125,000 square feet of retail space over the next two years and will bring the total gross leasable area of the center to 1.3 million square feet with 565,012 square feet of that space for retail. A new tenant, West Elm, leased 13,000 square feet in Downtown Boise and four new multitenant retail buildings were completed at North Pointe Shopping Center that were occupied by Jersey Mike’s, Smashburger and Chipotle. Although the overall retail openings continued to rise, the market saw a loss in big box retail occupancy due to the closure of seven stores. Owners of big box retail space may find that demising their properties to provide accommodations for multiple smaller tenants will be a necessity to lease the vacancy space. For the full report, please visit: http://www.comre.com/uploads/reports/p1aqaffhkm1ukr3egjio10vloe23.pdf
The Boise industrial market has continued to tighten in 2016. Vacancy rates decreased to 5.3 percent and set a new all-time low, absorption is on track to set a 10 year high and asking rates continued to trend upward due to the high demand and low supply of industrial property. In the second half of 2016, landlords should expect to see a general increase in activity. Nampa and Caldwell areas will continue to attract smaller tenants although several land opportunities exist for speculative or build to suit development. Interest rates are expected to rise which will likely put pressure on cap rates. The increase in rates may have some effect on the owner-user and investment sales market, but demand is expected to remain very strong. For the full report, please visit: http://www.comre.com/uploads/reports/p1aq07feqq110c1fluobq5c5pvs3.pdf
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About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce operates the Cushman & Wakefield business in Idaho, Nevada, Utah and Washington. As part of the Cushman & Wakefield global platform, the firm offers innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. With nearly 300 employees, 9 million sq. ft. of property management and transaction value of more than $2.8 billion, the firm is a leading commercial real estate resource in the Intermountain West region and Pacific Northwest. Learn more at www.comre.com.
About Cushman & Wakefield
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm’s 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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