— 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 percent year over year. Build-to-suit construction shop rents are reaching $45 per square foot, while freestanding build-to-suit rents range between $55 and $60 per square foot.
Site selection has become even more critical due to the tremendous growth Boise is experiencing. Having an in-depth understanding of transportation initiatives that can change the traffic patterns and define new trade areas or redefine existing trade areas adds to the challenge of pinpointing the right location for incoming retailers.