Considerable retail leasing to go along with still-strong retail construction highlighted the Nampa-Caldwell market this year, according to Gunstream Commercial Real Estate’s annual Canyon County Commercial Real Estate Update to be released at local chamber of commerce luncheons Dec. 11 and 12. Even the long-struggling but recently remodeled Karcher Mall cut its vacancy rate in half.
The report covers 1,002 retail, office and industrial buildings totaling more than 16.6 million square feet combined.
Although changes in the residential real estate market have caused an overall caution in the entire real estate market, commercial real estate is still very strong in Canyon County, Gunstream Commercial Real Estate President Jerry Gunstream said in a release. Building and land sales have slowed, causing some land prices to become more realistic. But leasing stayed strong throughout the year as businesses continued to move to the Nampa-Caldwell area, he said.
More than 1.1 million square feet of new commercial space was completed in Canyon County this year, which increased inventory by nearly 7 percent, the report said. About 65 percent of the new space was designed for retail use. Despite growth in the amount of available space, vacancy rates in the county remain below those found in most U.S. markets, Gunstream said.
Office space increased 9 percent with the addition of 186,000 square feet. The market absorbed 66,000 square feet during the year. That left 255,669 square feet unoccupied, for an overall office vacancy rate of 11.3 percent compared to last year’s 6.5 percent, the report said.
As for industrial space, no large buildings were completed this year. Some 252,529 square feet was added, increasing the total industrial space by 3 percent. A total of 639,544 square feet is currently unoccupied, for a total vacancy rate of 7.4 percent compared to a 7.6 percent a year ago.
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