Thornton Oliver Keller has released its mid-year 2013 Market Watch report, highlighting commercial real estate ups and downs in the Treasure Valley. Here’s a look at market activity in the first half of 2013:

OFFICE

Meridian has seen steady office-space activity, including:

  • OptumInsight leased a 12,300-square-foot building on Watertower Lane
  • POWER Engineers expanded in Meridian to an additional 11,600 square feet on Silverstone Way.
  • The Village at Meridian will add 140,000 square feet of new office space.

But many small business owners may delay expansions until they better understand changing health care laws, according to the report. This could result in pent-up demand in a few years if the Affordable Care Act's impact is positive.

“Boise’s lifestyle and cost to do business are attractive to companies outside Idaho,” the report says. “However, poor infrastructure and transportation options are hampering our markets.”

INDUSTRIAL

Much of the activity in the industrial market is taking place in Canyon County. Top-notch “Class A” space is tight, so landlords have started to increase rent, according to the report.

So far this year, TOK hasn’t seen any speculative construction — construction that takes place before a buyer has committed to it.

“Tenants with very specific requirements lament the lack of available options,” the report reads. “... With the housing recovery underway, many contractors are in need of additional space, but are hesitant to grow too quickly.”

Sale activity is down from 2012, but high demand for buildings with excess land has led to bidding wars.

RETAIL

An array of new retail space is about to open up in Meridian with a new Walmart on Overland Road and new shopping and restaurant space at The Village at Meridian.

“Many national retailers are opening their first stores in the Boise market, including a Trader Joe’s currently under construction in downtown Boise,” the report says. Other new-comers to Idaho include Toby Keith’s I Love this Bar & Grill and Yard House in Meridian, set to open later this year.

“The food service industry continues to be a bright spot for retail, with new and expanding restaurants taking space across the valley,” according to the report. This has led to high demand for second-generation restaurant space.

Other market activity includes:

  • Toys “R” Us and Babies “R” Us consolidated into a 50,300-square-foot anchor space at The Village at Meridian.
  • Destination XL leased 9,700 square feet at Meridian Crossroads on the southeast corner of Eagle Road and Fairview Avenue.
  • Chipotle Mexican Grill, Which Wich? and Sleep Train leased a combined 9,000 square feet at The Village.

-To read Thornton Oliver Keller’s mid-year 2013 Market Watch report, visit bit.ly/2013marketwatch.

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