Office Market Outlook for the Boise MSA
Recently completed projects are expected to have an impact on increasing lease rates in 2017, particularly in Downtown Boise. In order to compete with the new Class A product, some landlords are investing in renovations for their buildings. Concessions in the form of free rent will continue to decline with the rising cost of tenant improvements.
Vacant spaces left behind by tenants moving into new locations will present opportunities for tenants considering a move. Despite the increased vacancy in Downtown, supply remains relatively low. Challenges remain, however, especially with downtown parking. Parking costs and limited availability may push some tenants to lease space in other submarkets. Many Downtown tenants are getting creative with parking, including shuttling employees from parking garages and using valet parking.
Planned construction is increasing throughout the market; however, due to high construction costs most will require a tenant commitment before breaking ground. The Ten Mile interchange will see new buildings delivered in 2017 for businesses moving from other submarkets. Additionally, TSheets will occupy a new 65,000 square foot building on Eagle Road, leaving behind space in the Eagle River business park, an area with high demand but not much product available.
*Above is an excerpt from Thornton Oliver Keller's Year End Market Watch. For a free copy, please contact email@example.com.
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