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Looking for industrial space in Boise? Better get in line.

Tenants and buyers will face a tighter market in 2016. Vacancy will likely decline, however it will not be as pronounced as in 2015. The continued rebound of the market will make it difficult for growing companies to find available space that fits all of their needs. They will likely face compromises in terms of higher rent, location, or functionality.
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What's in store for the Boise investment market?

With the commercial market hovering at pre-recession vacancies and lease rates on the rise, 2016 should see another strong year of investment activity. Stable single-tenant NNN properties leased at market rates will continue to be in high demand, especially with buyers looking for hands-off investments to place in their portfolios. Quality supply will remain scarce, leading to fierce competition for this product. Shortened due diligence periods and quick closings will remain commonplace next year, especially for 1031 buyers.

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Online shopping's affect on Boise retailers

While online shopping continues to grow, it still makes up less than 10 percent of overall sales. However, technology is becoming an increasingly useful tool for retailers. Sixty percent of consumers report doing research online before making a purchase. How retailers use their space in the coming years will continue to evolve, with some retailers opting to give back space when it comes time to renew, or adding more warehouse space to their stores to accommodate online orders. Even with these changes, some industries remain “online proof,” such as restaurants, discount retailers, and fitness centers.
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What will 2016 bring for the Boise office market?

Vacancy should continue to decline for the first half of 2016, as demand for office space remains high. The second half of the year will hold more change as the 206,000 square foot City Center Plaza and 364,000 square foot Simplot Headquarters are completed in downtown Boise.
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