Construction activity is expected to increase in the second half of the year primarily due to new construction that will be delivered at the Ten Mile interchange. AmeriBen/IEC will occupy a new 76,000 square foot office, the first building at Ten Mile Crossing. This area will see continued development in the coming years and will be a desirable location for build-to-suit office tenants looking for locations at the center of the market.

Additional construction, as well as vacancies created from tenants moving into new buildings, will add much-needed inventory to the Eagle and Meridian submarkets. Although activity will increase as a result, it will also lead to an increase in total vacancy. 

The medical office market will grow with the upcoming completion of new buildings on Park Boulevard and Emerald Street. Additionally, construction recently started on the 94,000 square foot Idaho College of Osteopathic Medicine in Meridian. The amount of office product in the Idaho Center submarket near the Garrity interchange will steadily grow as the Saint Alphonsus campus expands.

Lease rates are expected to see an uptick by the end of the year as supply has diminished and tenant improvement costs rise. In a strengthening Office market, concessions from landlords will be minimal. Construction costs will lead to more challenging negotiations for smaller office tenants as upfront occupancy costs rise.



*Above is an excerpt from Thornton Oliver Keller's Mid-Year Market Watch. To receive a copy, email info@tokcommercial.com.