Though slowing, the Boise Office market continued to show positive fundamentals in the second quarter of 2024. The number of transactions were down over 10 percent from this time last year as economic struggles continue to affect tenants. Nevertheless, overall and multitenant vacancy are down from Q1 of this year. Overall vacancy decreased to 6.9 percent while multitenant vacancy fell by 100 basis points to 10.1 percent, the lowest it has been since the end of 2022.
Available sublease space continues its downward trend, staying well below 500,000 square feet in Q2. With this latest reduction, it has fallen back to levels that existed in the market over two years ago. However, high costs and persistent inflation continue to push tenants to reassess their overhead, as was highlighted by the recent closure of Intuit’s Eagle location and Intermountain Health‘s decision to close all Saltzer locations. These closures call attention to the choices businesses are making and are a likely indication that vacancy may begin to rise and absorption slow in the latter half of the year..
Subscribe to TOK Commercial's Boise MSA Office Market updates, here.