1st Quarter - May 12th, 2009

It's a favorable time to be a tenant. Landlords are offering tenants and brokers more concessions such as free rent, increased tenant improvement allowances, and larger commissions. We are seeing more lease durations shorter than the standard three to five year deals.

Tenants are also looking at older centers where they can receive single digit rent. The I-84 expansion is close to being finalized to help the population travel in and out of Nampa. Eagle Road remains active and continues to be a staple in the Treasure Valley for retailers.

  Outlook

Quarter one still felt the effects of a slowing economy. National tenants across the Treasure Valley have announced they will be leaving, such as Sportsmans Warehouse, Circuit City, and Joe's Outdoor Sporting Goods.

Large tenants in the West Bench (the mall area) officially shut their doors creating large vacancies to fill. Development across the valley has almost come to a complete stand still. Vacancy rose from 12.3% at 2008 year end to 12.8%. Like the office market, rents continue to scale back going from an average of $17.21 NNN at 2008 year end to an average of $17.05 NNN. On a positive note, the local tenant market has picked up. Tenants (cautiously) are saying that they may have seen the bottom in monthly sales.

  Retail Services Team

Lew Goldman Email Me	Mike Christensen Email Me	Brook Blakeslee Email Me