The Boise Commercial Real Estate Market

Shanti Ryle

November 12, 2024

The town of Boise, Idaho, with the sun setting behind it.

Crexi connects commercial real estate professionals in Boise, Idaho, and throughout the Treasure Valley with the tools they need to transact and thrive. Buyers, tenants, and investors nationwide consider Boise an exciting marketplace with plentiful growth potential. Crexi offers these parties a high-powered focus on the market and a thriving marketplace of available Boise commercial properties.

Brokers use Crexi's robust listing, lead management, and digital marketing platform to connect with buyers and tenants exploring Boise commercial real estate as a potential investment opportunity in Boise and beyond.

Today, Crexi has simplified and accelerated CRE transactions representing over $615 billion in property transactions and marketed assets worth over $7 trillion in value.

Crexi is proud to serve Boise and the entirety of Ada County as the nation's fastest-growing online commercial real estate platform.

The State of Commercial Real Estate in Boise

Boise, Idaho, also known as the City of Trees, is nestled in the state's southwestern region. The city lies along the Boise River, surrounded by many mountains in the Rocky Mountains Range. This geographical positioning offers residents a unique blend of urban and outdoor life.

The metropolitan area is a thriving economic hub, primarily driven by sectors such as technology, healthcare, and government services. Tech giants like Micron Technology and Hewlett-Packard have substantial operations in the city, while St. Luke's Health System and Saint Alphonsus Regional Medical Center are two of the largest employers. As the state capital, Boise sees a significant contribution from government services to its economic landscape.

There has been a noticeable relocation trend towards Boise in recent years. The city offers a high quality of life, a lower cost of living compared to many US cities, and a favorable business climate, making it attractive for individuals and businesses.

Boise also has plenty to offer in terms of leisure and recreation. The Boise River Greenbelt, a 25-mile park in the heart of the city, offers scenic beauty and a variety of outdoor activities. The city also has the historic Idaho State Capitol Building and the unique Basque Block, celebrating Boise's Basque heritage. Downtown Boise is vibrant, with various restaurants, shops, and art galleries catering to diverse tastes.

With its strategic location, robust economy, and rich cultural offerings, Boise is steadily emerging as a preferred destination for residents and businesses alike.

Downtown Boise from an angle with a wide street stretching through the city.

Boise Regional Breakdown

Boise and its metropolitan area, including notable submarkets like Nampa and Meridian, have seen exponential growth in recent years. This rapid expansion has been driven by significant in-migration and Boise’s increasingly attractive economic profile.

Today, Boise’s metropolitan area has a population exceeding 822,890, marking a growth trajectory that few other cities can match. The influx is not only due to individuals seeking a high quality of life but also companies looking for favorable business conditions.

In Ada County, Boise’s growth has led to a 32% increase in population since 2010, highlighting sustained interest in the region. With a median age of 37.8 years and a per capita income of $40,220, Boise appeals to a demographic seeking affordability without compromising on quality.

Ada County’s economic landscape is well-balanced, combining established industries with innovative, high-growth sectors. The area’s lower cost of living, when compared to many U.S. cities, alongside access to recreational activities, appeals to young professionals and families. Submarkets like Nampa and Meridian provide vital residential and commercial spaces to support this growth. The median household income of $80,928 further positions the Boise area as a viable option for individuals and families relocating from pricier markets.

A snowcapped mountain with the sign "Boise National Forest" in the foreground

Boise Job Market

Boise’s job market continues to expand, driven by a diversified economy and a growing presence in technology, healthcare, and professional services. In 2024, Boise’s GDP reached $36.3 billion, showcasing robust growth supported by key industries.

The tech sector, anchored by companies like Micron Technology, Hewlett Packard, and newer additions like ServiceNow, has positioned Boise as a tech-friendly city. These companies are among the area’s largest employers, providing high-paying jobs and drawing skilled workers to the region. Furthermore, healthcare providers such as St. Luke’s Health System and Saint Alphonsus continue to be substantial employers, reinforcing the city’s reputation as a reliable employment hub.

Boise’s low unemployment rate of 3.2% in 2024 exemplifies the city’s economic stability. Job growth is outpacing many similarly sized metro areas, driven by expanding target industries that include food processing, agribusiness, and professional services.

Educational institutions like Boise State University and College of Western Idaho contribute significantly to the local workforce, with nearly 38% of residents holding a bachelor’s degree or higher, a figure above the Idaho state average. These institutions produce graduates primed for careers in high-demand fields, ensuring that Boise’s talent pipeline remains strong as the city’s economy continues to evolve.

A timelapsed photo of downtown Boise at night with car headlines streaking down the main streets

Boise Industrial Market

Boise’s industrial market has been a focal point for growth, with robust demand for space and high leasing activity marking the sector as one of the strongest in the region. As of Q3 2024, Boise’s industrial market boasts 56.4 million square feet of inventory, with an overall vacancy rate of 8.3%. While vacancy rates have risen slightly due to new deliveries, leasing activity remains strong, particularly in large spaces suited to logistics and warehousing.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 56,446,997 SF
Vacancy rate: 8.3%
Absorption: 1,664,361SF (YTD)
Key leases by tenant: Excel, Inc. 187,000 SF, Kaitech Manufacturing 57,235 SF, Costco Wholesale Corp. 45,000 SF renewal
Under construction: 1,979,118 SF
Largest submarkets: Nampa, Airport, Caldwell, Meridian

Crexi Insights

Crexi Insights reports the most recent lease and sales trends for industrial property in Boise (as of November 2024):

For Lease (active)

Asking rate/SqFt (median): $13 per year
Median SqFt/listing: 7,516
Days on market: 134
Total listings on Crexi: 69 spaces

For Sale (active)

Median asking price: $2.8 million
Price/SqFt: $187
Asking cap rate: 7.6%
Days on market: 139
Total listings on Crexi: 15 listings totaling 283,100 SF

Sales Comps (past 12 months)

Median sold price: $3.2 million
Sold price/SqFt: $165
Total sales volume: $58.1 million
Sold cap rate: 6.1%
Median SqFt sold/transaction: $165
Total SqFt sold: 467,300 SF

Find Boise industrial space for rent.

A view of downtown Boise's city hall, with offices and shops lining the shot from the street

Boise Office Market

The Boise office market is undergoing an adjustment period as employers recalibrate their space needs in a post-pandemic world. Despite some softening in demand, Boise’s office vacancy rate is consistently below the national average, and the market remains resilient in the face of shifting work dynamics.

Total office inventory for Boise reached 17.3 million square feet, with a vacancy rate of 10.2%. Leasing rates in Boise are relatively stable, with high demand in certain submarkets driven by industries including finance, tech, and healthcare. Office users continue to prioritize location and amenities, with some choosing to relocate from other Western cities to capitalize on Boise’s competitive costs.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 17,300,000 SF
Vacancy rate: 10.2%
Absorption: -445,026 SF (YTD)
Key leases by tenant: RedBuilt 25,832 SF; Bevis, Thiry, Henson, and Katz Law 6,846 SF, Pathways of Idaho LLC 6,310 SF
Under construction: 172,940 SF
Largest submarkets: Downtown, West Boise, Meridian, Central Boise

Crexi Insights

Crexi provides data in real-time for the Boise office market. Here are the latest leasing and sales trends as of November 2024:

For Lease (active)

Asking rate/SqFt (median): $19 per year
Median SqFt/listing: 2,329 SF
Days on market: 230
Total listings on Crexi: 438 spaces

For Sale (active)

Median asking price: $1.1 million
Price/SqFt: $280
Asking cap rate: 6.2%
Days on market: 121
Total listings on Crexi: 42 listings totaling 432,100 SF

Sales Comps (past 12 months)

Median sold price: $997,500
Sold price/SqFt: $286
Total sales volume: $49.6 million
Median SqFt sold/transaction: 4,217 SF

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Dozens of hot air balloons float over a green area near Boise, part of the city's retail and tourists attractions

Boise Retail Market

Boise’s retail market remains strong despite some economic headwinds, as population growth and a stable economy continue to fuel consumer demand. The Meridian and Nampa submarkets are seeing particularly high demand for retail space, with the Nampa submarket posting a 6.9% vacancy rate, driven largely by high leasing volumes and sustained absorption.

The city has seen recent retail investment from well-known brands, creating a competitive landscape for both neighborhood and regional shopping centers. New retail construction is focused in growing submarkets, with the Airport and Caldwell areas anticipated to benefit from future retail expansions.

Market overview (Cushman & Wakefield Q3 2024)

Inventory: 25,351,344 SF
Vacancy rate: 3.3%
Absorption: 332,736 SF (YTD)
Key leases by tenant: Grocery Outlet 16,000 SF, Impact Thrift 15,775 SF
Largest submarkets: Nampa, Meridian, West Boise, Central Boise

Crexi Insights

Crexi Insights into Boise retail lease and sales trends (as of November 2024):

For Lease (active)

Asking rate/SqFt (median): $20 per year
Median SqFt/listing: 2,145 SF
Days on market: 220
Total listings on Crexi: 216 spaces

For Sale (active)

Median asking price: $1.4 million
Price/SqFt: $242
Asking cap rate: 6.1%
Days on market: 155
Total listings on Crexi: 34 listings for a total of 468,100 SF

Sales Comps (past 12 months)

Median sold price: $997,500
Sold price/SqFt: $236
Total sales volume: $31.5 million
Median SqFt sold/transaction: 7,150 SF

Find Boise retail space for rent.

Downtown Boise with fall leaves in the foreground and a hot air balloon floating above the city.

Boise Multifamily Market

Boise’s multifamily market is currently experiencing growth, fueled by a rising population and increased demand for rental housing. Occupancy rates for multifamily properties have steadily risen, reaching 94.6% as of Q3 2024. The average effective monthly rent in Boise stands at $1,595, a competitive rate relative to national averages, especially considering Boise’s affordability compared to larger Western cities. Developers have responded to this demand with an active pipeline, with 3,064 units under construction and expected to deliver record-high inventory by the end of 2024.