Boise Office Vacancy at Historic Lows
With occupancy high, vacancy at all-time lows and the economy running strong, office tenants can expect to be shocked by rent bumps of 15 to 30 percent as they consider renewal options, according to a Q1 Treasure Valley Research & Forecast Market Report just released by Colliers International.
The report puts the downtown Boise vacancy rate at 8.22 percent and falling. Meantime, neighboring Eagle, just six miles away, is charting a 3.58 percent vacancy rate. And downtown Nampa is booming with vacancy at a scant 1.59 percent!
As for rental rates, downtown Boise's average full service asking office rate has crested $20 per square foot per year with Eagle now over $18.
Meanwhile, the retail trend is moving the other direction with increasing vacancies and falling rents, the report asserts. No doubt a catalyst for this trend is the fact that Payless, Shopko and Sears are all closing stores. Yet Trader Joe's is rumored to be filling a space left vacant by Roasters on Eagle Road. And a fancy new 90,000-square-foot athletic club has been approved for the corner of Eagle and Ustick.
In the industrial sector, rents are holding firms and inventory is extremely low. Tenants can expect landlords to push for longer terms. And buyers will find CAP rates have steadily fallen.
Overall, southwestern Idaho's Treasure Valley continues to experience a steady inflow of newcomers as national media extol the business and lifestyle benefits here as a "last best place."