by Brad Carlson
Published: March 1,2011
Tags: Office space

The recession provided time to figure out what locations draw what types of office users.

Eight office property brokers recently evaluated geographic submarkets in the Boise area from the tenant’s perspective.

Downtown

Downtown Boise is attracting a wider variety of businesses, said Bill Beck of Tenant Realty Advisors in Boise. Engineering and environmental firms are among those joining longtime occupants such as financial and law firms, medical providers, and a couple of large corporations.

David Naccarato started McKinstry’s Boise office nearly five years ago. When the time came to move the integrated design-build firm’s office out of his home, he targeted downtown. He wanted to be in the center of a city experiencing an economic boom and liked the Banner Bank office building, constructed to Leadership in Energy and Environmental Design platinum standards. McKinstry recently expanded there.

“I was consciously looking for a building that met our commitment to energy efficiency and sustainability,” he said. The location is close to client and agency offices, and restaurants, he said.

Beck said parking availability and cost have been issues, but some tenants are weighing the benefits of driving less for meetings.

Boise Research Center

Professional service firms are moving to the office park on U.S. 20-26 near Cloverdale Road in northwest Boise, once dominated by technology firms, said Karen Warner of Colliers International in Boise.

“Tenants are attracted to the amenities and proximity to HP (Hewlett-Packard Co.),” she said. “However, vacancy has increased due to economic conditions and tenants seeking locations closer to the freeway corridor.”

Law firms, engineers, professional staffing firms and real estate businesses are occupying Boise Research Center. They like the competitive rents, retail and recreation amenities, and proximity to affordable housing, she said.

Pro-Team recently moved into 18,400 square feet at BRC. The commercial vacuum manufacturer bases 45 employees in the office.

“It really had to do with the location, the employee base and having a hotel close,” said Operations Vice President Kyle Mackey.
Amenities and parking were important, and Pro-Team didn’t need the high mid-day traffic counts a storefront business would like, he said.

Nampa

Health care has grown as an industry and office occupant in Nampa, said Lincoln Hagood, with Colliers in Nampa.

“The health care industry has become more personal, and this is demonstrated by growth in these industries in Nampa,” he said.
Hospice care providers, developmental disability agencies and counseling centers are among the examples.

Treasure Valley Hospice recently moved to a building at 8 N. 6th St., from a much smaller space near the Idaho Center events arena. The new location offers handier freeway access and a central location were key to the business, which dispatches caregivers all over the Boise Valley, owner Clark Limb said.

Parkcenter

Several upscale buildings that once housed corporations and other large office users have been converted for use by multiple, smaller tenants, said Guy Levingston of Intermountain Commercial Real Estate in Boise. A three-story building in the River Quarry development once occupied mainly by Albertsons is attracting other tenants, and the Greystone Building – anchored by an eye care center that left for its own building – are examples.

Smaller businesses move to Parkcenter for the same reasons including Boise River paths: onsite parking, restaurants and proximity to downtown, Levingston said. Tenants range from medical providers to charter schools and from employment firms to insurance and technology companies.

“It has gone from a headquarters-oriented environment to a more balanced, midsized, professional community,” he said. “It started in the early 2000s and is continuing its evolution.”

Many owners are remodeling buildings, and demand should build from the nearby Harris Ranch community, he said.

Emerald

The office market along Emerald Street near the Boise Towne Square mall is busy, said Jim Hosac of Idaho Commercial Brokerage, Boise.

Many tenants, including large real estate and mortgage companies, left during the economic boom for newer developments in places like Eagle and Meridian, leaving sizable spaces vacant.

Sensus USA recently expanded in Emerald, in functional and reasonably priced space that came with communication and other infrastructure to run its business, Hosac said.

“We’re seeing a lot of those second-generation spaces filled due to economics, functionality, and infrastructure,” he said. “Tenants could go in at a much lower cost, plug in and go to work.”

Meridian

The Meridian market, particularly in upscale developments off Interstate 84, has been driven more by corporate, medical office and retail uses in recent years, said Debbie Martin of DK Commercial, Meridian.

“It’s confirmation that the central location and freeway access continues to make this area one that is desired,” she said.

Broadview University’s new building and a recently opened Intermountain Gas service center, and a new Myriad Benefits office are examples, she said.

Eagle

Most tenants in Eagle are in real estate, development and financial services, one reason most occupy smaller spaces, said Tim Reid of Grubb & Ellis Idaho Commercial Group. There are few large anchors, such as food service company Lamb Weston, hospital facilities, banks, the Capitol Business Centers office suites, and a new office for Addecco Staffing.

“Many of these tenants settle on Eagle because they live there or because of the (high) per-capita income,” Reid said. “Most tenants range from 1,500 to 3,000 square feet.”

He has seen more small office tenants move to upscale space.

“The market has allowed them to get A space at B rents,” he said.

Boise Airport

Major tenants include Wells Fargo, College of Western Idaho, Assurant Health and Lee Pesky Learning Center. Deals in the past year included MWI Veterinary Supply purchasing the Albertsons call center off Elder Street and some leasing in the Owyhee Park Plaza building, said Mark Cleverley of Thornton Oliver Keller in Boise.

“Some of the tenants in that area are education or learning centers conveniently located to the interstate,” he said. “Other tenants are in this area because of the ease of access to the airport for business travel and for out-of-area clients.