Retailers looking for a space to locate their business outside of a major shopping center are facing the tightest market since 2002. That’s according to a new report on the Boise MSA from Thornton Oliver Keller.
The first quarter report on the retail market shows “unanchored vacancy” hit its lowest level in more than 17 years. Unanchored vacancy refers to retail space that isn’t part of a shopping center that contains larger anchor tenants. Anchors are typically national retail chains like grocery stores, drug stores or other large customer draws.
According to TOK, Unanchored Vacancy dropped to just 7.93% – meaning 92.07% of all space is full.
The report also notes total retail vacancy in the market – including both anchored and unanchored properties, is higher than unanchored vacancy alone for the first time since the firm began tracking.
Vacancy in anchored retail centers actually ticked up from Q4 of 2018. A large glut of available space driven by the final exit this month of Shopko from the Boise market should add to available retail space in anchored shopping centers. The closure of Sears at Boise Towne Square also added significant additional retail space.
So far this year, according to TOK, no new retail centers have been built in the market.