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Canyon County Business Leaders Ponder Local, National Economic Outlook

Nampa Article  Idaho Press  header

Mike Peña, Colliers Brokerage Associate and Partner added valuable insights and future trends

Economic Outlook for Nampa and Canyon County?

Economic activity locally has held strong in the past year said Robyn Sellers, director of economic development for the city of Nampa. She said she has received 23 inquiries since January about businesses looking to relocate locally.

Nampa is “fortunate” to have continued to grow in population, largely thanks to people moving to the area, Sellers said. Having a robust workforce is necessary to attract employers, she said. Nampa has seen a lot of growth in the area around the Amalgamated Sugar facility, she said. For example, the Stow Company, a Michigan-based closet manufacturer, broke ground this summer on a new $143 million facility that will bring 230 jobs, she said.

Mike Peña, a brokerage services partner with Colliers International and past chair of the Nampa Chamber, said Canyon County has held very strong in vacancy rates for commercial buildings, including industrial and retail space, as well as residences.

Office vacancy sits at just 1.2%, the lowest the area has seen, he said. Despite the pandemic, the area has seen many workers return to these buildings, he said. Retail is also “extremely healthy” at 4.1% vacancy, he said. In contrast, some coastal cities have office and retail vacancy rates of 15% to 20%, he said.

Industrial space has a 1.9% vacancy rate, which can be expected to go up, he said. That is because there are currently 3.5 million square feet of industrial space under construction in the county, the vast majority of which does not already have a tenant or a buyer in place, he said. But even if only 50% to 60% of those properties are leased or sold with the rest going to market, the vacancy rate would still fall in a healthy 6% to 8% range, he said.

The low vacancy rates apply to the residential market, as well, he said. Multifamily housing in the county has a 2.5% vacancy rate. And with single-family housing being so difficult to afford and costly to build, Peña expects the demand for multifamily to increase. This should complement the county’s desire to preserve agricultural land, he said. Multifamily housing reduces sprawl, and can even address issues like traffic if housing is built close to where residents work. “You can’t be against high-density housing and for ag,” he said.

Sellers said that Nampa has seen permitting for single-family homebuilding fall off by 33% while multifamily has increased by 19%, which she called “not surprising.” The two biggest factors are the increase in interest rates and the cost of construction materials, she said. The development of Highway 16 is also promising for Canyon County’s businesses, Peña said. It will be comparable to the effects of the Ten Mile Road corridor in the past 10 years, including more office buildings and retail development, he said.

“Having these big commercial buildings is great for the homeowner because it’s going to drive down our property taxes,” he said, adding that most of the land has already been bought and there are plans for development in the works. Manley travels all over the country and Canada and said the Treasure Valley’s hopefulness about its economic situation it is rare. “I can say with a whole lot of certainty that there is no other place in America that is as optimistic about their community as you folks are about your own,” he said, and was met with cheers and applause.

To read the full Idaho Press article, CLICK HERE

For further information, please contact:
Amie MacKinnon | Director of Marketing & PR, Idaho
208 472 1662 | amie.mackinnon@colliers.com

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Mike Pena

Brokerage Services | Partner

Nampa

Mike is a USMC veteran with over 25 years of professional sales experience and has been involved in over $450 million  in sales transactions in seven different countries throughout his career. He has lived in Idaho for over 20 years with his wife and three children. Mike enjoys cross fit, rucking and fly fishing.

Mike joined the Colliers team in 2008 and specializes in retail, investment, industrial, multifamily and land transactions. Mike has a broad knowledge base in commercial real estate including site selection, valuation, entitlement process, Industrial, Investments, and Retail (over 150,000 square feet of listings).

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