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Southern Idaho commercial real estate market remains strong

Published: Oct. 4, 2021 at 4:46 PM MDT
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MAGIC VALLEY, Idaho (KMVT/KSVT) — Southern Idaho is one of the fastest growing areas of the country. Because of the rapid population increase, Josh Palmer from the City of Twin Falls says the commercial real estate market is quite strong.

“In 2020 for year-to-date we had about 60 new construction permits whereas this year we have over 90,” said Palmer. “So it is hummin along pretty good, a lot of these spaces are really smaller boutique-style commercial spaces but we are seeing some larger projects,” he continued.

Industrial space is doing the best across southern Idaho. A 20-21 third quarter says we saw a less than 1% industrial space vacancy rate. That’s far below the national average of around 4%. When it comes to renting retail and office space, it’s hard to find something affordable.

“They need to move quickly when something is available, and they make a decision, and sometimes that’s difficult in small business, you know when you’re working with SBA funding it’s a little bit tough,” said Commercial Realtor Tami Walker.

While many areas in Twin Falls are very much in demand including downtown and on Blue Lakes, Walker says one of the largest areas in demand is very large plots of land for large businesses down by St. Luke’s medical center.

“Out toward the hospital right now, that is big boom out there so I would say that because those are new builds out there you’re getting more per square foot than you would down here,” said Walker.

Unfortunately for tenants who are struggling to find affordable space, Idaho doesn’t offer much in financial incentives like other states.

“What we do offer is the ability to be extremely nimble. We’ll work with the business to try to find the best location for them but in terms of what you might see in other states like in terms of financial incentives, there really isn’t anything like that in the city of Twin Falls or Idaho right now,” said Palmer.

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