Transaction volume is off to a strong start in 2017, already approaching 2016’s total. The number of investment sales is up nearly 50 percent from this time last year. A contributing factor to this boost in sales has been an increase in 1031 buyers. They are accounting for a greater portion of transactions and are highly motivated to close on new acquisitions to avoid paying capital gains tax.
Buyers are cautious and do their homework on the market and investment options. Despite increased sales activity, some sellers of single-tenant properties are reaching with asking prices and do receive some pushback from buyers. However, appropriately priced properties will usually trade quickly. 

Properties listed at $2 million or less are attracting the most buyers, often with cash and no financing requirements. Downtown properties also remain in high demand and in some cases the land is worth more than the buildings. Increased construction costs for renovations and tenant improvements have made stabilized properties even more attractive than usual. Value-add properties are becoming more challenging to sell unless the buyer has an effective strategy for repurposing the space.

National cap rates have remained stable at low levels while local cap rates have seen only a minor decrease. The Boise market continues to provide attractive investment opportunities to out-of-area buyers and is aided by an increase in regional and national attention and steady population growth.

Multifamily product is in demand but there are very few sellers. Rents continue to climb to record highs and most projects that are under construction will be held onto by the developer. Occupancy has dipped only slightly to 96.8 percent.

Boise investment market,Boise cap rates,Boise multifamily market