Expect commercial real estate vacancies to keep falling and lease rates to keep climbing in the Treasure Valley, Michael Ballantyne says.
Ballantyne, managing partner at Boise commercial real estate brokerage firm Thornton Oliver Keller, says high construction costs, a conservative lending environment and low lease rates will limit speculative building.
“We still have a long way to go before most new speculative projects will pencil, so look for continued tightness in the market,” he says.
Meridian is a hotbed of commercial construction and leasing, much of it centered around The Village at Meridian and the Eagle Road corridor. New homes are attracting new commercial development.
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“We say that retail follows rooftops,” Ballantyne says. “Services like grocery, restaurants, doctors and dentists have been moving into the area to serve the community.”