The Office market slowed in Q1 with the number of transactions down 4 percent from Q1 2023. Lease rates and vacancy remained healthy in the first quarter of the year.
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Q2 2024 Boise MSA Industrial Market Trends
Development remains a key highlight for the industrial sector with over 822,500 square feet of new construction completed in Q1. This is a 13.7 percent increase from construction delivered in Q1 of 2023. The majority of development has occurred in Canyon County, accounting for over 59 percent of total construction. In addition, 84 percent of total construction in the Boise MSA is speculative space.
Eastern Idaho 2024 Commercial Real Estate Market Outlook
TOK's latest outlook for Eastern Idaho's commercial real estate market highlights important trends for office, industrial, retail and investment properties in 2024.
Office
The strong organic growth the area has seen will likely continue to drive the demand for future office space. Over half of transactions in 2023 were with tenants opening additional locations, expanding their space, or local tenants starting new businesses
TOK Commercial Hosts "Beyond Boise" Private Client Event
PRESS RELEASE
Release Date: March 21, 2024
TOK COMMERCIAL HOSTS “BEYOND BOISE” PRIVATE CLIENT EVENT
Q1 2024 North Idaho Office Vacancy Trends
Multitenant office vacancy in North Idaho ended 2023 at 10.7%. Total office vacancy in the area (includes single-tenant buildings) ended the year at 4.4%.
Q1 2024 Boise MSA Land Market Trends
Compared to 2022, commercial construction slowed considerably in 2023. The number of commercial permits pulled in the Boise MSA were down 30 percent and saw the lowest number of permits since 2011. Several factors impacted commercial development such as high construction costs, shortage of skilled labor coupled with rising labor costs, and the financial sector making it difficult for builders to secure financing.
Q1 2024 Boise MSA Retail Market Trends
It was another banner year for retail development with 303,500 square feet of new construction, up slightly from 2022. The biggest project delivered was D&B Supply’s new store in Caldwell, while the rest of the construction was attributed to multiple single tenant and strip center projects under 15,000 square feet.
Q1 2024 Boise MSA Office Market Trends
Despite other markets seeing vacancy soaring and significantly reduced demand for space, the office sector in the Boise MSA continues to see healthy fundamentals. Overall net absorption remains positive totaling 313,000 square feet and ended the year with the strongest quarter in two years.
Q1 2024 Boise MSA Investment Market Trends
Rising interest rates and high economic uncertainty resulted in the Boise Investment market seeing a major shift in sales activity in 2023 compared to the two previous record breaking years. Based on disclosed transactions, sales volume ended the year at $416 million. This is down 70 percent from 2022 and the lowest level transaction volume has reached in eight years. Fewer high priced deals traded in 2023 with only six deals over $10 million recorded.
Q1 2024 Boise MSA Industrial Market Trends
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.