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Multifamily sales lead investment market in Boise

Over the past 12 months, multifamily sales have accounted for 36% of all investment deals. There has been over $80M in apartment transactions over the past year, representing the sale of over 1,100 units in the Boise MSA. Cap rates for multifamily product in Boise have declined in 2015 and are currently 6.1%. Read the rest of entry »

Commercial Real Estate Update for October

Office update

  • When Drake Cooper leased 6,200 SF at Bodo in Downtown Boise, vacancy continued to decrease to 7.5%.
  • Vacancy in West Boise decreased to its lowest point since the recession (12.6%) as 5,300 SF leased to the Department of Health and Welfare in Westgate Plaza.
  • A design firm vacated 11,600 SF on Owyhee Street in the Central Boise submarket, causing vacancy to rise to 13.4%.
  • Vacancy in South Meridian decreased to 10.3% when AECOM-URS leased 17,100 SF in the Silverstone Plaza on Overland Road.
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How big is four million square feet?

Answer: Big, REALLY big. To put that in perspective, the Boeing Plant in Everett, Washington is 4,300,000 square feet. Merchandise Mart in Chicago is 4,000,000 square feet. Read the rest of entry »

Heartland RV to occupy 248,100 SF in Nampa

Heartland RV recently announced that it is coming to Nampa and bringing hundreds of jobs with it. Heartland expects to be operational in the first quarter of 2016 and will employ 120 people at that time. Within three years, employment is likely to hit around 275 employees. Read the rest of entry »

Land activity expected to pick up, especially in North Meridian

After a slow start to 2015, commercial land activity will pick up in the second half of the year as deals currently under contract will soon close. Tenant demand for new speculative construction will be the primary driving force of future land sales. In North Meridian, both commercial and residential land sales will gain momentum as more businesses look to establish a presence amidst ever-expanding residential growth. Nearby areas such as Eagle and South Meridian will likely see some carryover of sales due to their close proximity.
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Boise's Investment Market Outlook

Opportunities are likely to pick up in the coming years as CMBS loans signed during the boom reach maturity. Many owners will see an improved market and opt to sell instead of refinancing. With rents increasing, many properties are positioned to capture desirable returns and value-add properties will be increasingly hard to find.
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What's in store for the Boise industrial market?

As the market continues to tighten and new product is delivered, lease rates will steadily climb. Speculative construction will pick up steam in the second half of the year with 26,000 square feet delivering on South Cole Road and 41,000 square feet soon to be available near Franklin & Linder in Meridian.
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What's in store for the Boise retail market?

With no large developments slated for completion in the second half of 2015, vacancy will tighten and absorption will remain positive. Retail centers with high traffic counts and good visibility will see lease rates rise. Properties with longstanding vacancies should continue to see suppressed rents.
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What's in store for the Boise office market?

Downtown is bracing for the delivery of the 206,000 square foot City Center Plaza, slated to arrive in 2016. The nine-story office tower has been pre-leased with most space to be occupied by Clearwater Analytics and Boise State University. Although City Center Plaza will be nearly 100 percent occupied at delivery, there will likely be ripple effects due to other spaces being vacated by these tenants. Another downtown project slated for completion in 2016 is the Simplot headquarters located at 9th & Front Streets. Simplot will vacate over 100,000 square feet in One Capital Center and will consolidate some operations throughout the valley.
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Interest rates are beginning to rise for commercial real estate

Talk of interest rate hikes has been prevalent in recent years, and is now likely according to many economists. The Fed signaled on July 29, 2015 that it remains on course to raise interest rates this September. A slight increase is unlikely to cause a significant slowdown in commercial transaction volume, but it will persuade investors to be even more particular about the product they purchase. New opportunities could arise for buyers as some existing owners elect to sell at the first sign of an increase. Read the rest of entry »