BOISE, ID--(Marketwired - Feb 8, 2016) - Commercial real estate in the Boise area had a strong 2015, according to the Boise office of Cushman & Wakefield/Commerce. The firm released its 2015 Year-End Market Review report detailing the position of commercial real estate in the Boise area, including the office, industrial and retail markets.
"Commercial real estate in the Boise area saw rental rates continue in their upward trend as demand increased and vacancy rates dropped," said Tim Reid, Market Leader for the Boise office of Cushman & Wakefield/Commerce. "Although all three market segments, office, retail and industrial, were strong in 2015, the retail market was the shining star as it continued to outperform the others as the economy continued to grow. This has been the 7th consecutive year now that more retail stores opened than closed."
Office Market
The overall vacancy rate decreased from 2014, ending the year at 13.2 percent. Demand for office space downtown continued to show strength, as the downtown and Eagle markets reached their lowest vacancy rates since the recession. Because of transactions like Paylocity with 13,100 square feet and Simplot with 265,000 square feet, availability of large office space, generally space over 10,000 square feet is sparse. As vacancy rates decreased, the number of jobs increased to 4.2 percent leading the nation as 27,600 new jobs were added on a year-over-year basis.
Retail Market
With the result of an improving economy and population growth, the retail market in Boise reached new heights. As tenants continued to expand and new ones entered the market, leasing activity increased in 2015. The overall absorption was 500,717 square feet and the overall vacancy rate dropped to 5.8 percent. Downtown Boise was yet again the strongest submarket as it reached the 7th consecutive year of having more openings than closings with 24 openings in 2015.
Industrial Market
Since mid-year 2015, the overall vacancy rate had dropped by 0.2 percentage points in the industrial market, ending the year at 6.5 percent. Demand for space and lack of supply has attracted developers to bring more space to the market. More than 300,000 square feet of new product was under construction throughout the year and 2015 saw the highest level of construction since 2011. Demand is expected to remain high for industrial space leading into 2016.
To access the full report for each of the markets, please visit: http://www.comre.com/research.
About Cushman & Wakefield/Commerce
Cushman & Wakefield/Commerce, headquartered in Salt Lake City, Utah is an independently owned and operated member of the Cushman & Wakefield Alliance, with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company, Cushman & Wakefield/NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory.
Together the firms manage more than 52 million square feet of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at www.comre.com, and www.cushwakenm.com. Cushman & Wakefield/Commerce and Cushman & Wakefield/NorthMarq are part of the Cushman & Wakefield platform.
About Cushman & Wakefield
The successful merger of Cushman & Wakefield and DTZ closed September 1, 2015. The firm now operates under the iconic Cushman & Wakefield brand and has a new visual identity and logo that position the firm for the future and reflect its trusted global legacy and wider history. The new Cushman & Wakefield is led by Chairman & Chief Executive Officer Brett White and Global President Tod Lickerman. The company is majority owned by an investor group led by TPG, PAG, and OTPP.
Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. The firm's 43,000 employees in more than 60 countries provide deep local and global insights that create significant value for occupiers and investors around the world. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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