M A R K E T B E AT

Retail Q3 2020BOISE

COVID COMMERCIAL REAL ESTATE2020 continues to be an unforgettable year for everyone. Idaho has been able to come back after the initial pandemic shut down at near equal strength as before. Idaho continues to be growing at a record rate with the Treasure Valley leading the in-migration race. The increase in population is encouraging to the existing retailers that are expanding and driving the new to Idaho retailers. As the population grows the need for services only increases regardless of the pandemic. Even as COVID 19 cases are predicted to uptickin the winter months retail appears to be staying strong.

THE RESILIENT TENANTEven as the pandemic has continued, the Idaho market has not seen many closures. The vacancy rates seem to reflect more of the big box users that were already on the way out before the pandemic. There has not been an influx in smaller spaces in the 1,200 to 5,000 sf range coming available which seems to be creating even more demand as product remains slim. We are seeing some mid box users such as Big 5 having record sales and renewing their leases. With the population continuing to grow the housing and multi family sectors are exploding directly reflected in the strength of home improvement retailers. We are seeing home improvement, furniture, flooring, and landscape doing well, and in some cases expanding. Restaurants that may have experienced hard times in the beginning of the pandemic have reinvented themselves to better serve people in the current climate. Just out of the initial COVID shut down O’ Crab Seafood & Bar signed a lease in over 6,000 square feet. We are seeing several QSR tenants expanding into our market with the same velocity as before the pandemic. The main change surrounding new QSR locations is the need for a drive thru. The desire for drive throughs has been a long standing one but with the pandemic it has become a must. The demand for these types of spaces will drive up the rents in the coming months.

THE FUTURE OF COMMERCIAL REAL ESTATE IN IDAHOThe Idaho retail team will continue our long-standing optimism for the future of commercial real estate in Idaho. We particularly see retail showing its flexibility to cope with the times and find success. We stand by our past predictions that the population growth will only open up our market to more retailers. As we head into the holiday season there will be the standard increase in online ordering. The recommendation is to not be discouraged by the decreases in brick and mortar shopping. As in years past, there will be a bounce back after the holidays as consumers return and rebuy in stores.

$65,400Boise HH Income

2.8%Population Growth

5.2%Unemplyment Rate

Source: BLS (Economic Indicators are representative of specific county or MSA.)

-8.0%Consumer Spending Growth

18,128GDP Growth

-2.3%Retail Sales Growth

Source: BEA, Census Bureau

U.S.ECONOMIC INDICATORS Q3 2020

YoY Chg

YoY Chg

RENT / VACANCY RATE AVAILABILITY BY PRODUCT TYPE

38%

27%26%

9%

Neighborhood &Community

Strip Power & Regional Freestanding

Neighborhood & Community

Strip

Power & Regional

Freestanding

5%

6%

7%

8%

$10

$12

$14

$16

2014 2015 2016 2017 2018 2019 Q3 2020

Asking Rent, $ PSF Overall Vacancy Rate

12-Mo.Forecast

12-Mo.Forecast

M A R K E T B E AT

Retail Q3 2020BOISE

full service asking

KEY SALES TRANSACTIONS Q3 2020

KEY LEASE TRANSACTIONS Q3 2020

*Renewals not included in leasing statistics

Christopher IsonBrokerage Research AdministratorTel: +1 208 287 8448Christopher.Ison@paccra.com

A CUSHMAN & WAKEFIELD RESEARCH PUBLICATION©2020 Cushman & Wakefield. All rights reserved. The information contained within this report is gathered from multiple sources believed to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy.

cushmanwakefield.com

MARKET STATISTICS

PROPERTY SUBMARKET TENANT RSF TYPE

125 Valley River Drive Outside MSA Advance Auto Stores 16,375 Sublease

6650-6762 Glenwood Street North Boise Big 5 Sporting Goods 4,800 Renewal*

16808 N Marketplace Boulevard Nampa O’ Crab Cajun Seafood & Bar 6,022 Direct

PROPERTY SUBMARKET SELLER / BUYER SF

Karcher Village Nampa Karcher Plaza LLC / MMB Management LLC 37,376

211-301 11th Avenue Nampa Z Denda LLC / Tibbs Family Properties, LLC 31,800

Eagle Island Marketplace Meridian Eisenberg Eagle Pad 17 LLC / Eagle Island-mcgill LLC 18,500

Walgreen’s Meridian Meridian Promenade P1 LLC / ld-Merid LLC 15,385

Hawkeye Plaza Nampa Amanda LLC / Jackson Food Stores, Inc. 12,000

*Rental rates reflect NNN asking

SUBMARKET INVENTORY (SF)

SUBLET VACANT (SF)

DIRECT VACANT (SF)

OVERALL VACANCY RATE

CURRENT QTR OVERALL NET ABSORPTION

YTD OVERALL NET ABSORPTION (SF)

UNDER CNSTR (SF)

OVERALL AVG ASKING RENT (NNN)*

North Boise 1,749,834 21,663 103,737 7.2% -10,104 -10,814 0 $12.36

Downtown 1,489,717 8,600 83,126 6.2% -13,842 14,108 12,777 $19.46

Central Boise 1,595,758 6,385 175,559 11.4% -3,317 4,255 8,281 $10.03

West Boise 3,541,536 5,290 153,871 4.5% 350 -4,475 0 $12.46

Southwest Boise 1,556,587 0 58,381 3.8% -14,547 94,796 0 $13.25

Airport 91,846 0 3,711 4.0% -3,711 -3,711 0 N/A

Southeast Boise 1,282,909 0 38,405 3.0% 3,311 -7,168 0 $17.23

Meridian 4,380,730 0 140,096 3.2% -15,638 73,472 451,662 $19.37

South Meridian 507,791 0 21,028 4.1% -8,315 -5,021 0 $15.68

Eagle 801,009 0 34,599 4.3% -8,810 10,278 34,574 $13.82

Nampa 4,717,908 3,949 671,429 14.3% -33,893 14,172 5,236 $12.54

Caldwell 1,030,903 2,100 71,334 7.1% 20,631 7,616 8,733 $12.14

Middleton 198,863 0 0 0.0% 0 0 0 N/A

Kuna 365,182 0 7,733 2.1% -7,733 -7,733 21,838 $20.00

BOISE TOTALS 23,310,573 47,987 1,563,009 6.9% -95,618 179,775 543,101 $13.50

M A R K E T B E AT

Retail Q3 2020

BOISE

RETAIL SUBMARKETS

Christopher IsonBrokerage Research Administrator Tel: +1 208 287 8448christopher.ison@paccra.com