T
he Treasure Valley's commercial real estate (CRE) market is expected to continue growing, albeit at a slower pace than in previous years. Kelly Schnebly, a retail associate and partner with Colliers, describes the local CRE industry as a "mixed bag" that is performing better than many other markets nationally.

    Despite post-pandemic challenges, Schnebly believes the market is on an upswing, driven by factors such as growth in Southern Idaho and a relatively low vacancy rate of 3-4% for retail space. Office space vacancy remains at around 9%, significantly lower than major markets like San Francisco.

    Retailers are optimistic about expanding their businesses in the Treasure Valley, with many big-name brands showing interest in the area. Quick-service restaurants (QSR) remain a popular segment, with drive-thrus still considered essential by many fast-food chains.

    However, zoning changes enacted in Boise last year have made it more difficult to find drive-thru locations along major corridors. Retail outlets continue to flourish in Meridian, particularly along Chinden, Eagle, and Ten Mile roads.

    Industrial vacancies remain at around 7.5% countywide, slightly higher than the five-year average. Nampa and Caldwell are experiencing rapid growth in the industrial sector, driven by projects like Micron and the Meta data center in Kuna.

    Persistent inflation, high interest rates, and a glut of CRE space have impacted the sector over the past four years. While no one knows for sure what the future holds, many involved in the industry believe that lower interest rates could boost the market.

    A renewed sense of optimism is expected with President-elect Donald Trump's return to the White House, potentially leading to a more predictable and stable environment for the CRE sector. Investors continue to seek out CRE opportunities in Idaho due to its consistent growth and stability.