The local market remains somewhat volatile and different market areas & different property types have different responses. Overall, the commercail market remains steady and transactions - at least for us - remain good.
I was reading the Idaho Business Review article that commercial construction is up 6% from last year. The article didn't get very indepth and give information about the various sub-markets and product type, however.
In some ways I was a little surprised, but not that much. We've seen retail struggling (to be kind) in certain market areas.
Industrial properties are probably okay with certain sub-markets showing a little weakness, but demand for mid-size facilities remains strong. While we've seen some construction-oriented business bailing out, we've also seen some service industries getting busy and leasing more space. We're also seeing businesses in retail properties fall back to industrial properties to save money and expand at the same time.
Office product is mixed in my opinion. I see some of the upscale, small to mid-sized, properties backing off their top leasing (asking) rates. In response, we're seeing second generation facilities either backing off on their rates or giving some lease concessions. But those 2nd generation properties appear to be doing well responding to a more value-oriented market.
Cap rates continue to trend upwards for investment properties.
Hope that helps more than not. Each sub-market is different, so keep that in mind. If you want to evaluate your options, feel free to give us a call.
Be good & treat others as you would like to be treated.
Boise Valley Commercial Real Estate, LLC
Scott Nicholson
208-890-3939
www.BVCRE.com
scott@bvcre.com