Land Outlook for the Boise MSA
Sales of ready-to-build commercial lots will remain strong in 2017 as some tenants opt out of leasing space in a tight market. This trend is especially apparent in the Industrial market where vacancy is below 5 percent and much of the remaining space is functionally obsolete.
Land activity near the Ten Mile interchange will continue to heat up in 2017 as construction gets underway for new office buildings just north of the freeway. An increase in daytime employment population will create opportunities for retail services, including restaurants. Other areas which should see commercial land sell to users in 2017 are North Meridian and the Garrity interchange.
With high construction costs, many home builders are constructing higher-end homes where margins are larger. This has resulted in fewer available starter homes which more closely align with the average local wage. Periphery markets, like Star and Kuna, will see increased interest from developers who are priced out of areas like Eagle and Meridian.
Multifamily projects that were delayed in 2016 due to a labor shortage and the desire by developers to see how product is absorbed may break ground in 2017 if occupancy, absorption, and rents remain strong. This activity could lead to future multifamily land sales.
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