October Markets Update

Submitted by Marketing Team on Mon, 11/11/2024 - 09:15
Idaho's Commercial Real Estate Markets Update for October 2024 Provided By TOK Commercial Real Estate

Idaho Commercial Real Estate Markets Update | October 2024

October's report is full of treats, with no tricks! This month, our dashboard of market stats include important "tenant origin" data which capture the leasing activity of businesses that are local startups, or are moving, expanding, or new to Idaho markets. Our analysis places "tenant origin" alongside vacancy and absorption rates to offer deeper context for key market trends across asset classes in the Boise Valley, Magic Valley, Eastern Idaho and North Idaho.

Enjoy the data!

Arrows reflect YOY comparison

TOP TRANSACTION

St. Luke’s expanded into 21,000 square feet at Portico West in the Eagle Road submarket where 8 percent of deals in the last 12 months, involved tenants moving locations.

 

TOP TRANSACTION

Foundation Building Materials, LLC leased 32,000 square feet at 2860 Vala Hala Avenue, causing months of supply to decrease to just 5.7 months in the Southwest submarket.

 

TOP TRANSACTION

Now That’s a Deal leased 13,300 square feet at Glenwood Country in the North Boise submarket, where most retail deals have been recorded in 2024, just behind North Meridian.

 

Arrows reflect YOY comparison

NOTABLE ACTIVITY

Gem State ENT & Hearing Professionals occupied their new 6,000 square foot building in the Canyon submarket, where the majority of office absorption has taken place so far in 2024, with over 40,000 square feet absorbed. 

 

TOP TRANSACTION

Elevation Tree Services, LLC purchased 3,600 square feet in South Twin Falls, where over 50 percent of industrial deals have occurred so far this year. 

 

TOP TRANSACTION

Culture For Change Foundation leased 3,800 square feet of retail space in Downtown Twin Falls, allowing this nonprofit organization to offer more impactful programs for women and children, including financial literacy, sewing classes, and more.  

 

Arrows reflect YOY comparison

TOP TRANSACTION

Rudd & Company, PLLC completed construction of their new estimated 12,000 square foot building located in the River submarket where lease rates are averaging $21.00 per square foot (NNN, annual). 

 

TOP TRANSACTION

Eagle Eye Logistics, LLC occupied their newly constructed 22,000 square foot space in North Idaho Falls, the submarket with the highest level of net absorption so far in 2024 at 260,000 square feet. 

 

TOP TRANSACTION

Out West Bible Church leased the former Haunted Doom Space (35,200 SF) in North Idaho Falls, which is the largest retail lease deal in the North Idaho Falls submarket so far this year.  

 

NOTABLE ACTIVITY

Selkirk Sports leased 22,000 square feet at 751 Hanley Avenue in Coeur d’Alene where the most office transactions have occurred this year. 

 

TOP TRANSACTION

Dragon Jacket Insulation leased 35,000 square feet at 215 Moyie St., a new 52,000 square foot development in Post Falls that was completed in Q3. 

 

TOP TRANSACTION

Sierra Trading Post leased 20,000 square feet at Silverlake at 95 in Coeur d’Alene, where overall vacancy was just 1.3% at the end of Q3. 

 
 

PropModo | The Tech Helping Retail Landlords Find the Right Tenants "In retail real estate, when the retailer makes money, the landlord makes money. Landlords pay close attention to the size and demographics of the people who visit their properties. They also try their best to find tenants that have synergy. Now, there is an entire economy of technology tools that have been built to help landlords better understand their customer base and what mix of tenants will lead to high sales."

The Real Deal | Party's Over: Industrial Vacancy Hits 10-Year High "The party’s over for warehouses. Following an astounding run for the nation’s industrial real estate market, the vacancy rate reached 7.4 percent in the third quarter — the worst in 10 years and 350 basis points higher than two years ago..." 

Yahoo Finance | Can Fed's Rate Cuts Jumpstart The Struggling Commercial Real Estate Market? "In September, the Federal Reserve kicked off an interest rate-cutting cycle, reducing the Fed funds rate by 50 basis points for the first."

Morningstar | Real Estate Investor Optimism Grew in Q3 "Sixty-eight percent of investors viewed today's market as better or much better than it was a year ago, compared to only 13% who felt it was worse or much worse. Investors were equally bullish on where the market is headed, with 71% expecting it to continue to improve."

AP News Walgreens to close 1,200 stores as US pharmacies struggle to define a new role  “Walgreens is planning to close around 1,200 locations, as the drugstore chain and its rivals struggle to define their role for U.S. shoppers who no longer look to them first for convenience."

Wall Street Journal | Bosses Are Calling Workers Back to the Office. That’s Good News for Landlords "The Office market shows signs of stabilizing as one-third of companies require workers in five days a week."

 

CNBC | Sam Altman Backed Nuclear Reactor Oklo to Start Site Work in Idaho "Oklo has received the greenlight from the Department of Energy to conduct site investigations for the planned reactor at Idaho National Laboratory in Idaho Falls."

Idaho Statesman | Private equity and venture capital investors have spurred these Idaho businesses "The Treasure Valley is experiencing an economic renaissance, with growth across various sectors. In the past decade, VC investment in Idaho grew from $8 million in 2013 to $145 million in 2023, with job growth doubling the national average between 2017 and 2022."

Clearwater Tribune | Idaho's September unemployment rate increases to 3.6% "Three of Idaho’s six Metropolitan Statistical Areas (MSAs) had over-the-month nonfarm job increases in July. Idaho Falls experienced the largest increase at 0.4%, followed by Boise (0.3%) and Coeur d’Alene (0.1%). Pocatello and Twin Falls experienced decreases of 2.4% and 0.4%, respectively."

BoiseDev | In-N-Out to Open Boise Store "The In-N-Out location will be the second to open in Idaho after a restaurant location opened in the Village at Meridan last fall. Third and fourth locations in Nampa and North Meridian are also on the way."

 

From tenant and landlord representation to acquisitions, property management, integrated real estate solutions, and property services ... TOK offers experienced guidance and data-driven advice.

BROKERAGE | PROPERTY MANAGEMENT | PROPERTY SERVICES

 

Five Locations to Serve You

Boise Office
250 S 5th Street, 2nd Floor
Boise, Idaho 83702
Main Phone: 208.378.4600
 

Nampa Office
16150 N. High Desert Street, Suite 200
Nampa, Idaho 83687
Main Phone: 208.378.4600

Twin Falls Office
195 River Vista Place, Suite 204
Twin Falls, Idaho 83301
Main Phone: 208.944.9694

Idaho Falls Office
1135 Pier View Drive, Suite 120
Idaho Falls, Idaho 83402
Main Phone: 208.227.8148

Coeur d'Alene Office
3322 N. Grand Mill Lane
Coeur d'Alene, Idaho 83814
Main Phone: 208.449.1908