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.
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Q3 2024 Boise MSA Industrial Market Trends
Despite record high vacancy rates, the industrial market has continued to perform well, with total number of transactions up over 28 percent from this time last year. In addition, net absorption levels are currently positive in 77 percent of submarkets. Canyon County has seen the highest level of absorption so far in 2024 with 378,000 square feet absorbed.
Q3 2024 Boise MSA Retail Market Trends
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.
Top 10 Investment Opportunities
Our investment clients enjoy access to off-market listings, investment market updates, and the first look at investment offerings we bring to market. : Our team achieves our investment clients' goals and represents their interests as we implement representation strategies for their commercial real estate requirements. Our experienced professionals are specialists in the investment market and are equipped with extensive market data and tools for financial analytics.
Top 10 Industrial Spaces For Rent
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
Q2 2024 Boise MSA Land Market Trends
The Commercial land market in the Boise MSA has benefitted from the stabilization of economic conditions and is faring better in 2024 than it was a year ago when uncertainty caused developers to put a pause on acquisitions. The number of reported commercial land transactions was up over 50 percent from the first four months of 2023.
Commercial Real Estate Investments With the Best ROI
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.
2024 Boise MSA Multifamily Market Report
High economic uncertainty resulted in the multifamily investment market seeing a major shift in 2023 compared to previous record breaking years. Based on disclosed transactions, only 10 multifamily properties traded in 2023 which is down 55 percent from 2022. Prices were up slightly from 2022, with the median price per door in Ada County reaching $288,798 and $251,902 in Canyon County. Three of the six transactions in Ada County sold above $300,000 per door.
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