2023 was a banner year for industrial development with almost 4.5 million square feet of new construction completed. This is especially true in Canyon County, where 3.1 million square feet of new construction delivered, a record high for the area. It was also a historic year for speculative construction which surpassed 3 million square feet, comprising 70 percent of total construction.
The delivery of large speculative projects like Red River Commerce Center (392,000 square feet) and Kings Road Commerce Center (362,000 square feet) caused a dramatic uptick in multitenant vacancy, which reached its highest level since 2012 at 19.2 percent. Overall vacancy also increased, reaching its highest level in a decade at 6.5 percent. In addition, months of supply surpassed 13 months for the first time since 2014.
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