IRR-Boise Mid-Year Viewpoint 2015 Local Market Report - Industrial
Industrial markets in the Greater Boise MSA are showing relative stability. Absorption has been projected to be lower than that of 2014, but still favorable. Rent growth, which was largely flat 2013 to 2014, is expected to return, and vacancy is expected to continue a slow but steady decline. That said, prevailing rent levels generally do not support new spec development, which bodes favorably for continued vacancy declines for the near term and in turn, prospects for rent growth over the longer term.
Vacancy is lower in Ada County than in neighboring Canyon, and it is higher in aged multitenant offerings than in modern single-tenant or user offerings. Vacancy rates are highest in incubator-type projects (spaces of 3,000 SF or smaller). Combined, these factors suggest that significant users of industrial space wanting to be in Ada County will likely build new, or have a build-to-suit done to accommodate their needs.
In July 2014, Idaho passed a Tax Reimbursement Act which the Boise Valley Economic Partnership stated would help "recruit businesses to the Treasure Valley and keep growing businesses from leaving". Per an Idaho Statesman article November 2014, the program "offers companies up to a 30 percent reimbursement of their payroll, income and sales tax for up to 15 years by passing certain job creation and wage thresholds". Initial interest has reportedly been quite strong, with inquiries and expansions significantly increased in the year since this measure was passed, but the limiting factor to some extent is anticipated to be supply of suitable facilities for companies of the substantial size necessary to take advantage of these incentives.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.