2012 Global Market report - NAI Global

Boise, Idaho
Southeast (Idaho Falls/Pocatello), Idaho
Contact
NAI Pinnacle
+1 208 947 0019
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
632,956
698,548
321,775
$67,331
$53,343
33
The Boise Valley commercial real estate is developing
a number of bright spots in a market that has, in general,
been hit hard by the nationwide recession. Plans for the
construction of a new Class A 253,000 SF office and retail
high rise development was just announced for downtown
Boise. Tenants, whether large or small, are taking advantage
of the opportunity to negotiate more favorable pricing,
locations and facilities; or to purchase their existing facilities.
Idaho and the Boise Valley in particular affords numerous
advantages, including a low cost of living, reliable and
inexpensive power, a high quality work force, a stable tax
base, a progressive business climate, tremendous natural
beauty and a high quality of life. Businesses are appreciating
these advantages as they evaluate and move to Boise.
Families and retirees choose the Boise Valley for its outdoor
and family activities. The continuing success of the Boise
State University Bronco’s, playing on the blue turf, is giving
Boise greater visibility.
Office vacancy rates, although less for Class A and B space,
remain stubbornly high at 20% overall in the office sector.
Downtown prime space is the exception. We expect both
lease rates and lease terms to increase over the next 12
months as the market continues to stabilize. However, in
contrast to the last three years, we are seeing new
construction either being planned or started in desirable
locations.
There has been little retail development over the last four
years. Consequently tenants looking for class A product are
having a difficult time finding suitable locations. In some
cases tenants are waiting longer or having to settle for less
desirable locations. There is high demand for pre-existing
restaurant space and locations for discounters. New to Boise
are grocers Whole Foods and Rosauer’s. Expanding in the
area are Fred Meyer and Walmart. These major grocers
should initiate new retail developments surrounding their
locations.
The industrial market in the Boise Valley appears to have
stabilized with vacancy rates declining somewhat. There
is a shortage of large industrial warehouses and class
A industrial space, which should lead to industrial
development in 2012.
Contact
NAI Commerce One
Real Estate
+1 208 525 8088
Metropolitan Area
Economic Overview
2011
Population
2016 Estimated
Population
Employment
Population
Household
Average Income
Median
Household Income
Total Population
Median Age
322,445
354,887
157,199
$58,462
$46,643
29
The economy continues to stabilize in Eastern Idaho, with
positive signs of growth across the region. Idaho Governor
Butch Otter has accurately stated that Idaho boasts a low
cost of living, reliable and inexpensive power, a high quality
work force, a stable tax base, a progressive business
climate, tremendous natural beauty and a high quality of life.
Idaho ranks in the top five states in the nation in patents per
capita and in manufacturing investment, and also ranks high
in green job growth. Ridgeline Energy and BP Wind Energy’s
wind farm, 10 miles east of Idaho Falls, is the state’s largest
and is now running at full capacity on 11,000 acres with 83
generators. The Idaho National Lab employs over 7,500
scientists, researchers and support staff. In October 2011,
the Nuclear Regulatory Commission issued a license to
AREVA Enrichment Services LLC (AES) to construct
and operate a $2.5 to $5 billion gas centrifuge uranium
enrichment plant in Bonneville County, west of Idaho Falls.
In Pocatello, retail growth continues with the addition of
Dick’s Sporting Goods and several other retailers. Work is
being completed on Allstate’s new $22 million customer
information center that will employ around 500 workers. In
2011, Idaho State University purchased the 200,000 SF
state of the art Ballard Medical facility, which will be used
as a high tech, multi-disciplinary research laboratory.
Pocatello also boasts the opening of the beautiful new
403,000 SF Portneuf Medical Center on the east bench and
a $10 million dollar computer data center.
Access to low cost, quality higher education has resulted in
a well educated workforce. Boise State University, ISU and
University of Idaho all have a presence in Idaho Falls through
the Center for Advanced EnergyStudies (CAES), a public/
private research partnership with the universities, the INL
and private industry. BYU-Idaho, a private university in
Rexburg owned by the Church of Jesus Christ of Latter-Day
Saints, has grown to be the 10th largest employer in the
state. Enrollment is expected to increase to 15,000 by
2015.
Boise At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
$
$
$
$
N/A
17.50
15.10
N/A
14.83
8.56
$
$
$
$
N/A
21.36
17.31
N/A
21.49
17.30
N/A
$ 19.40
$1 6.20
N/A
$ 17.00
$ 13.42
N/A
3.90%
6.30%
N/A
13.30%
15.60%
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$ 2.28
N/A
N/A
$ 6.97
N/A
N/A
$ 4.99
N/A
N/A
5.90%
N/A
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$
$
$
$
11.24
4.34
10.60
9.62
$
$
$
$
19.17
14.24
13.62
16.53
$ 16.97
$ 10.61
$ 13.39
$ 11.69
6.90%
4.00%
6.60%
11.80%
deVeloPment land Low/Acre High/Acre
Office in CBD
$ 925,000.00 $ 1,170,000.00
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
181,000.00
80,000.00
75,000.00
125,000.00
7,500.00
$
$
$
$
$
795,000.00
294,000.00
321,000.00
795,000.00
35,000.00
Idaho Falls/Pocatello At A Glance
(Rent/SF/YR) low High effective avg. Vacancy
doWntoWn offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
suburban offIce
New Construction (AAA)
Class A (Prime)
Class B (Secondary)
IndustrIal
N/A
$ 14.50
$ 9.00
N/A
N/A
$ 9.00
N/A
$ 16.00
$ 12.00
N/A
N/A
$ 12.00
N/A
$ 14.00
$ 10.00
N/A
N/A
$ 11.00
N/A
N/A
N/A
N/A
N/A
N/A
Bulk Warehouse
Manufacturing
High Tech/R&D
retaIl
$ 2.50
$ 4.00
$ 5.50
$
$
$
6.00
6.50
7.00
$
$
$
4.25
5.75
6.75
N/A
N/A
N/A
Downtown
Neighborhood Service Centers
Community Power Center
Regional Malls
$ 9.00
$ 9.00
$ 9.00
$ 22.00
$ 12.00
$ 16.00
$ 25.00
$ 38.00
$ 10.00
$ 15.00
$ 13.00
$ 28.00
N/A
N/A
N/A
N/A
deVeloPment land Low/Acre High/Acre
Office in CBD
Land in Office Parks
Land in Industrial Parks
Office/Industrial Land - Non-park
Retail/Commercial Land
Residential
$
$
$
$
$
$
230,000.00
130,000.00
75,000.00
25,000.00
200,000.00
15,000.00
$
$
$
$
$
$
360,000.00
240,000.00
100,000.00
100,000.00
650,000.00
90,000.00
2012 Global Market Report n www.naiglobal.com 96