Idaho

Post-Pandemic Boise Tries to Keep Up with Explosive Population Growth

by Jeff Shaw September 22, 2023

— By Nellie Day — Boise was a hotspot of activity as the pandemic hit in 2020, with many people desiring more space, more access to the outdoors and, in some cases, a cheaper cost of living. Mike Erkmann, principal at NAI Select, fills WREB in on what the city and its commercial real estate landscape has been like since 2020. What are the notable trends occurring in Boise? The most notable trend occurring in Boise continues to be the expansive population growth. Boise was the fifth fastest-growing city in the U.S. in 2022 and 2023. We are expected to see 37 percent population growth between 2022 and 2050, with a predicted total MSA population of 1.1 million people. On average, we are adding about 15,000 people annually, which will continue to rank Boise at the top for fastest-growing cities in the U.S. What challenges is this market facing? Aside from the obvious challenges we are facing in the market, including higher interest rates and tougher lending requirements, we here in Idaho are facing a shortage of labor with the dramatic increases in the cost of living. Median sales prices in Boise have increased 78 percent over the past five years …

September 22, 2023

Idaho Market Reports Office Western Western Market Reports

Companies Are Attracted to the Boise Office Market

by Jeff Shaw September 15, 2023

— By Karena Gilbert, Office and Investment Associate, Colliers — Idaho experienced significant population growth in recent years, and the commercial real estate market reflected that trend. The pace of growth has begun to slow, although overall growth is expected to increase over the next decade. The growth brought both business and talent to the state as the Boise MSA continues to maintain a healthy office market. Second-quarter vacancy sits at 7 percent, up from 6.1 percent in the first quarter and outperforming the national vacancy rate, which stands at 16.4 percent. The Boise MSA has experienced an 18.5 percent job growth over a five-year period compared to the national growth level of 3.4 percent. Despite these promising stats, Idaho is not immune to the economic turbulence being felt on a national level. With interest rates rising and market uncertainty, some buyers have become more cautious while others still actively seek opportunity. Cap rates have increased from 5.1 percent in the second quarter of 2022 to between 5.5 percent and 6.5 percent in the second quarter of 2023. Office lease absorption is down, though we’re still seeing a lot of interest in Boise. Micron, a $66 billion semiconductor company founded …

September 15, 2023

Company News Idaho Midwest Ohio Retail Top Stories Western

Kroger, Albertsons Agree to Sell 413 Stores in Connection with $24.6B Merger

by Taylor Williams September 11, 2023

CINCINNATI AND BOISE, IDAHO — Kroger Co. (NYSE: KR) and Albertsons Cos. Inc. (NYSE: ACI) have agreed to sell 413 stores across 17 states and Washington, D.C., as part of the $24.6 billion merger between the two grocery giants. The buyer is C&S Wholesale Grocers, a New Hampshire-based grocery supply company overseeing brands including Piggly Wiggly and Grand Union. According to multiple news outlets including USA Today and Crain’s, the sales price is roughly $1.9 billion. In addition to the 400-plus grocery stores, C&S will also acquire eight distribution centers and two office properties that Kroger or Albertsons operate, as well as five private label brands. No store closures are expected to occur as a result of this selloff. The brands that will change ownership include Quality Food Centers (QFC), a regional operator in the Pacific Northwest; Mariano’s, which operates 44 stores in Illinois; and Alaska-based Carrs. Kroger owns QFC and Mariano’s, while Albertsons owns Carrs after acquiring the brand from Safeway and changing the name to Carrs-Safeway. Lastly, under the terms of the agreement, C&S will receive exclusive licensing rights to the Albertsons brand name in four states: Arizona, California, Colorado and Wyoming. In addition, Kroger will divest the …

September 11, 2023

Development Idaho Industrial Western

Cushman & Wakefield Brokers Sale of 12.7-Acre Industrial Development Site Near Boise

by Amy Works September 8, 2023

CALDWELL, IDAHO – Cushman & Wakefield has arranged the sale of a fully entitled, 12.7-acre industrial development site in Caldwell. An undisclosed transportation company acquired the asset from the Upson family for an undisclosed price. The shovel-ready site is located at Smeed Parkway and Skyward Street within Sky Ranch Business Park. The location provides access to the Caldwell Executive Airport, Highway 20/26 and Interstate 84. Additionally, the site features existing improvements, including sidewalks, curbs, gutters, multiple fire hydrants and onsite transformers. Stephen Fife of Cushman & Wakefield represented the seller, while Alison Castro of Cresa and Greg Gaddis of Tenant Realty Advisors represented the buyer in the deal.

September 8, 2023

Idaho Market Reports Retail Western Western Market Reports

Many Retailers See Boise as the Next Expansion Hotspot

by Jeff Shaw September 8, 2023

— By Andrea Nilson, Executive Director of Retail and Capital Markets, Cushman & Wakefield — National attention has been focused on the business growth, expansion and innovation in the Mountain West region in recent years — and Boise continues to be the region’s bright spot. Recognized as one of the best places to live and work due to its educated population and outdoor lifestyle, the area remains at to top of retailers’ site selection lists. Boise has also become a city of choice for restaurants, which has pushed the market to a new level of maturity and refinement. A strong blend of national chains, as well as regional and local restauranteurs, are anchoring several of the large, high-density apartment developments downtown, making this core truly unique and vibrant. The retail market remains on an upward trajectory based on key indicators. Low levels of speculative construction and strong demand will likely contribute to lower vacancy and higher rents for the remainder of 2023. Demand has outpaced supply by 30 percent over the previous 15 months. Boise was ranked No. 3 in annual population growth nationwide at 2.2 percent. It is projected to increase further, while its economy expanded at a rate of 3.4 …

September 8, 2023

Idaho Industrial Market Reports Western Western Market Reports

Healthy Leasing Activity Keeps Massive Industrial Projects on the Rise

by Jeff Shaw September 6, 2023

— By Dan Minnaert, Partner and Industrial Specialist, TOK Commercial Real Estate — Industrial leasing activity has slowed year over year in Southern Idaho markets with total transactions down 9 percent. However, all markets saw transactions increase or remain flat from the first quarter to the second quarter. Net absorption has also remained positive in all markets throughout the first half of 2023. Activity is strongest in the Boise MSA with nearly 900,000 square feet of net absorption recording so far this year. Top deals for the year include Ferguson Enterprises leasing 164,600 square feet of new construction in Nampa, and Hensel Phelps Construction leasing 92,900 square feet at 535 Gowen in South Boise. Demand remains strongest for spaces in the 1,000- to 5,000-square-foot range, accounting for 51 percent of deals over the past 12 months. However, absorbed spaces above 15,000 square feet have increased 15 percent year over year. In addition, organic growth is the top driver for leasing activity considering 30 percent of deals over the past year were attributed to tenants opening additional locations or expanding. Additional new industrial tenants are expected to enter Southern Idaho, most notably in the Boise MSA as new projects such …

September 6, 2023

Idaho Market Reports Multifamily Western Western Market Reports

The Flourishing Idaho Multifamily Market Touts Growth, Shifting Dynamics, Resilience

by Jeff Shaw September 1, 2023

— By Colton Yasinski, Investment Sales Advsor, Capstone Cos. — The multifamily market in Idaho and, specifically, Boise, has experienced an impressive surge over the past five years. This has largely been fueled by the impact of COVID and the attractiveness of Idaho living. The result has been an unprecedented demand for multifamily housing, triggering a development boom that has reshaped the market landscape. In the past year alone, Boise has seen the delivery of 4,000 multifamily units with numerous ongoing construction projects. The city’s rapid population growth and robust housing demand has attracted institutional capital, leading to tighter cap rates similar to larger metropolitan areas. Pioneering developers have recognized the potential in Idaho’s market and entered the scene alongside local development groups. Among them are prominent names like Lincoln Property Company, Alliance Residential Company, Woodside Homes, Morgan Stonehill, American Homes 4 Rent and others shaping the multifamily landscape. However, amidst this growth, market dynamics have started to shift. Over the past year, multifamily sales in Boise have declined by more than 70 percent, accompanied by rising cap rates due to fluctuations in the capital markets. The surge in new units has transitioned the market from favoring landlords to becoming …

September 1, 2023

Idaho Loans Retail Western

Wood Investments Cos. Receives $39.1M Refinancing for Two Shopping Centers in Meridian, Idaho

by Amy Works August 17, 2023

MERIDIAN, IDAHO — Wood Investments Cos. has secured refinancing totaling $39.1 million for two shopping centers located in Meridian, roughly 11 miles outside Boise. The first shopping center, Gateway Marketplace, is leased to tenants including a 42,212-square-foot PGA Tour Superstore, Trader Joe’s, Mecca Gym, Land Ocean, Chili’s, Le Peep, Mathnasium and Orange Theory Fitness. Wood acquired the property in 2021. Tim Winton of Keystone Mortgage Corp. arranged a $16.5 million permanent loan through Voya Investment Management for the 135,732-square-foot property. The second shopping center, CentrePoint Marketplace, totals 197,288 square feet and is located across from Gateway Marketplace. Tenants at the property include Kohl’s, Hobby Lobby, Dick’s Sporting Goods, Walgreens, Qdoba Mexican Eats, Panera Bread and Wingers Restaurant & Alehouse. Greg Richardson of Walker & Dunlop arranged the $22.6 million refinancing through RGA ReCap LLC.

August 17, 2023

Acquisitions Idaho Retail Western

Kidder Matthews Brokers Sale of 139,064 SF Pocatello Square Shopping Center in Idaho

by Jeff Shaw July 26, 2023

POCATELLO, IDAHO — Kidder Matthews has brokered the sale of Pocatello Square, a 138,064-square-foot shopping center in Pocatello, approximately 160 miles north of Salt Lake City. Tenants at the property, which was built in 2006 and fully leased at the time of sale, include Dick’s Sporting Goods, Grocery Outlet, Ross Dress for Less, JOANN Fabric and Crafts and Old Navy. Mike King, Erik Swanson, Darren Tappen, Peter Beauchamp and Nathan Thinnes of Kidder Matthews represented the seller, CWCapital, in the transaction. An undisclosed buyer purchased the center through CWCapital’s online auction platform, RI Marketplace. The price was not disclosed.

July 26, 2023

Acquisitions Idaho Industrial Self-Storage Western

StorageMart Adds 131,686 SF of Self-Storage Space in Caldwell, Idaho

by Jeff Shaw July 12, 2023

CALDWELL, IDAHO — StorageMart, the largest privately-owned self-storage company, has expanded its footprint in Caldwell. The company has added two storage facilities with a combined net rentable space of 131,686 square feet, providing customers with a variety of storage unit sizes and drive-up options. The storage properties provide a range of unit sizes from compact five-foot by five-foot units to 10-foot by 30-foot units. StorageMart continues to grow its presence in Idaho, catering to the increasing demand for self-storage solutions in the area.

July 12, 2023

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