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Capitalization rates have remained relatively flat from the end of 2023, with cap rates in the office, retail, and industrial sectors averaging at or near six percent. Multifamily cap rates have seen a significant jump, averaging 5.9 percent, the highest multifamily cap rates have been since 2016. Average cap rates are anticipated to stay near six percent in all sectors, though more deals are trading in the high six to low seven percent range, most notably in the office and industrial sectors.

Unanchored vacancy increased 100 basis points compared to the end of Q1, rising from 4.7 to 5.7 percent. This is the highest level unanchored vacancy has been in nearly two years. The uptick in unanchored vacancy is due to a rise in supply considering over 50,000 square feet of speculative product came online in Q2. This brought the mid-year spec total to 99,800 square feet.

Emerging technologies, production and workflow processes, distribution, access to supply and labor, warehousing, and supply chain operations can be optimized with the right real estate solutions. We can help you find the right industrial space for your business.

"Industrial development will continue to flourish across Idaho with much industrial space currently under construction and expected to deliver before the end of 2024. The rise in quality space in the market has ultimately kept lease rates at record highs."

- Chris Pearson

The allure of commercial real estate brings opportunity to many investors, offering a potential steady stream of income with the ability to maximize long-term capital appreciation. While the rewards can be substantial, navigating this dynamic landscape requires a keen understanding of factors that influence profitability.

Understanding the jargon of