Land Board Reveals Vacancy Rates

After the GUARDIAN broke the story of the Idaho Land Board advertising for a construction manager to build a brew pub in downtown Boise, it was revealed they were spending the endowment fund money to attract a new tenant to the building with an 86% vacancy rate.

One of our readers provided the results of a public records request that shows a less than stellar occupancy rate for some state-owned downtown Boise properties.
Here is what the lands department provided our reader:

While the commercial real estate business may have been lucrative at one time, we submit high vacancy rates combined with investments meant to attract renters may not be a “best business practice.”

All of the properties are exempt from local taxes to the city, county, schools, and ACHD. The schools get a return in theory if the “profit” were to exceed the current private property tax levy. The proceeds are also exempt from state and federal income tax.

Comments & Discussion

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  1. What would Trump say to them?

  2. Actually.. it’s more appropriate for the State to lease a building for a brew pub than for the County to directly operate its entertainment facilities…Fair and Fairgrounds, and the venue at Barber park. At least the business leasing the State building might operate it efficiently.

  3. 22% of STATE owned buildings are vacant. What does that say about the privately owned buildings in Boise? Yet the CCDC and that idiot mayor are still touting the “vibrancy” of downtown!
    I have to wonderv what city they are talking about!

  4. Eye on Numbers
    Aug 28, 2011, 11:04 am

    Hey Cyclops…if a lie is repeated often enough people begin to take it as fact.

    The reality is they mayors/county commissioners in the valley continue to sell the notion we can spend our way into prosperity by taxing property owners already hanging by a thread financially.

  5. We have tried for over 3 years to negotiate a lower rate on the Sherm Perry space. The latest round ended with “we want a restaurant” in this space. Granted we did not need the whole space, only a third but they could have had some money coming in as we did not require much build out. In fact, a little over a year ago a company that works with us needed space and we could have occupied half the Sherm Perry space. Unfortunate as we are a design company (with plans for classes and retail) which would have been great fit there. I think they are not only faced with rate issues (as with ALL of Downtown) but also discriminating on the type of occupant the want. Time for DT Boise to wake up before they start loosing more business to lower lease rates on the outskirts and retrain others from entering.

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