Commercial real estate firm Colliers International put out its update on the Ada & Canyon County office market for the 4th quarter – and there’s a bit of movement.
The vacancy rate in Ada County topped 4.93%, the highest rate in two years. The uptick in available square footage is driven in part by a large spike in availability in the South Meridian submarket — that’s where several new buildings from Ball Ventures Ahlquist started to come online during the last part of the year.
At the same time vacancy increased, rate also went up – also to its highest level in two years, according to Colliers. The report says the average price for per square foot for “full service” office space is $17.96 in Ada County. While this goes against the laws of supply and demand – Colliers says there is an explanation.
“Ada County has seen a notable upward shift over the past few quarters. This is in part due to a higher amount of newly constructed buildings listed on the market,” the report said.
New ICCU Building at Eagle View Landing up and running pic.twitter.com/6Hoy0AB7od— 🔅Don Day (@DonLDay) October 22, 2020
Vacancy in the Downtown Boise core ticked up 2.5% over the third quarter – a closely watched area of the valley that has seen a general lack of office workers during the COVID-19 pandemic. The wider downtown area, outside the core, saw vacancy rise about 1%. The amount of empty office space also moved up in Garden City, where 2.6% less space had a tenant in Q4 versus Q3.
In Canyon County, vacancy for office space went down according to Colliers, dropping to 4.04%, tied with the lowest rate in two years. Again not tightly following the supply and demand ‘law,’ the asking rate for 2C office space declined a bit to land at $15.13 per square foot.
“While the Canyon County asking rate is up from its position two years ago, it shows a slight downward trend and should be watched closely for any change in direction,” Colliers said.