The Boise Commercial Real Estate Market Overview
Boise, Idaho, and the surrounding Treasure Valley region have become exciting hubs for commercial real estate investment. The area offers significant growth potential, attracting buyers, tenants, and investors nationwide. Here is an in-depth look at the market dynamics.
Economic Landscape
Boise, also known as the City of Trees, is nestled in southwestern Idaho along the Boise River, surrounded by the Rocky Mountains. This geographic setting provides residents with a unique blend of urban and outdoor living. The city’s economy is robust, driven by sectors such as technology, healthcare, and government services. Major employers include Micron Technology, Hewlett-Packard, St. Luke’s Health System, and Saint Alphonsus Regional Medical Center.
Recent years have seen a noticeable relocation trend towards Boise due to its high quality of life, lower cost of living compared to many U.S. cities, and favorable business climate. Boise offers various leisure and recreation options, such as the Boise River Greenbelt, the historic Idaho State Capitol Building, and the vibrant downtown area with its restaurants, shops, and art galleries.
Boise Regional Breakdown
Boise has been one of the fastest-growing cities in the United States, with significant annual population increases driven by relocations and strong economic prospects. Despite this growth, Boise maintains a small-town charm with diverse recreational and cultural activities.
- Population: Over 813,000 in the metropolitan area.
- Ada County Growth: Population has increased by more than 32% since 2010.
- Major Cities: Boise, Nampa, and Meridian, home to nearly 40% of the region’s population.
- Growth Projections: Slow but steady growth expected over the next several years.
- Demographics: Median age of 37.8; per capita income of $40,220; median household income of $80,928.
Job Market
Boise’s job market is robust, with impressive growth, particularly in the tech sector. The city has one of the lowest unemployment rates in the nation, currently at 3.2%. Key industries include food processing, agribusiness, manufacturing, professional services, and technology. Major employers are St. Luke’s Health System, Micron Technology, and Saint Alphonsus Health System. Boise’s universities, like Boise State University, contribute to the skilled workforce, with nearly 38% of residents holding a bachelor’s or advanced degree.
Industrial Market
Boise’s industrial market is growing rapidly, with a mix of new constructions and existing building demands. The diverse tenant mix includes technology, distribution, manufacturing, and building materials sectors.
- Inventory: 50,789,941 SF
- Vacancy Rate: 4.8%
- Absorption: 833,723 SF (YTD)
- Under Construction: 4,909,413 SF
- Key Submarkets: Nampa, Airport, Meridian, Caldwell
Office Market
The office market is adjusting to new dynamics, with demand softening as employers reassess in-person work requirements. Despite increased vacancy and available square footage, Boise’s market remains resilient.
- Inventory: 16,981,999 SF
- Vacancy Rate: 10.2%
- Absorption: -445,026 SF (YTD)
- Under Construction: 172,940 SF
- Key Submarkets: Downtown, West Boise, Meridian, Central Boise
Retail Market
Boise’s retail market shows resilience, with strong leasing activity and demand outpacing supply. Despite a slight increase in vacancy, the market remains healthy.
- Inventory: 24,748,186 SF
- Vacancy Rate: 3.1%
- Absorption: 169,573 SF (YTD)
- Under Construction: 613,739 SF
- Key Submarkets: Nampa, Meridian, West Boise, Central Boise
Multifamily Market
Boise’s multifamily market is experiencing shifts, with a slight decrease in occupancy rates and a minimal increase in average rent. Despite this, new deliveries are expected to remain high.
- Total Housing Units: 319,494
- Multi-Unit: 31,468
- Vacancy Rate: 5.7%
- Asking Rents: $1,612
- Deliveries: 770 units
- Under Construction: 5,390 units
- Key Submarkets: Boise, Nampa/Meridian/Caldwell
Conclusion
Boise, Idaho, with its strategic location, robust economy, and rich cultural offerings, is steadily emerging as a preferred destination for residents and businesses alike. For advanced property marketing tools and further insights, visit VidTech.com.
