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. Two of these deals went under contract during the peak of 2022, but extended due diligence pushed the closings into 2023. Based on available listings, the start of 2024 has seen a significant decline in pricing with the median price per door in both Ada and Canyon County at $200,000.

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. Overall average lease rates held at $20.50 per square foot (FLSV, Annual) while average Class A rates jumped 3 percent from Q4 to $24.75.

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

Industrial

Spec development is expected to slow slightly with only a handful of projects slated to deliver in 2024. One notable construction project is Idaho Falls Business Park, where 122,600 square feet is expected to deliver

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%.

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