IRR-Boise Mid-Year Viewpoint 2015 Local Market Report - Office
For 2014, the Greater Boise MSA saw a net absorption of just under 470,000 SF of office space, with the Boise CBD and nearby Meridian accounting for over half of it. Vacancy rates have been showing steady declines, rental rates are increasing, but the gap between Class A product any everything else continues to grow as well. Despite strong construction activity and a temporary spike in vacancy, downtown Boise has recovered quickly, now showing a vacancy level near equilibrium. Two large projects, City Center and the Simplot Headquarters at JUMP, are under construction in the CBD. Owner-occupied or substantially pre-leased, the impact on overall vacancy will be indirect insofar as making available former spaces of some of the occupants of the new projects, but like the Eighth & Main tower that absorbed roughly 250,000 SF in 2014, the market welcomed the move-up opportunities thus created.
Also on the horizon, the College of Western Idaho is contemplating a downtown campus presence, and various developers are contemplating condo and hotel offerings that will complement office demand in downtown Boise. Suburban activity is characterized by continued steady absorption in competitive for-lease offerings, and considerable owner-occupant demand.
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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.