Two good things happened in the Boise area office space market in February: Vacancy decreased slightly, and lease rates picked up a bit.
This is according to new numbers from Boise-based Thornton Oliver Keller Commercial Real Estate, which notes in a report that although the average price increase was only small (up from $13.40 to $13.50 per square foot from last year), “it could be an indicator that rents are bottoming out.”
The vacancy statistics look like more of a plateau than a turnaround, too. Since October 2009, office vacancy rates in the area have hovered between 15.6 and 15.75 percent after a steady rise from 14 percent in June 2009.
Vacancy in Meridian, which is still higher than average at 20.9 percent, has been steadily declining and is now at its lowest level since late 2008. Nampa’s office vacancy has been declining as well, though the central Boise submarket is on the rise, now with over three years of projected supply.
Industrial space around the area is at its lowest vacancy level since March 2009, now at 11.3 percent. The drop (from 11.7 percent) can be largely attributed to Best Bath’s purchase of a 100,000-square-foot building in Caldwell and Scentsy’s lease of 48,000 square feet in west Boise.
Retail vacancy rose from 13.7 to 13.9 percent in February, due in large part to the closure of a 29,000-square-foot Rite Aid in west Boise.
According to Thornton Oliver Keller, activity is up in all sectors of the leasing market.