• Vacancy continues to fall in the Industrial sector, dropping from 7.4% to 6.6% over the past six months.

• Warehouse lease rates increased throughout the area, particularly in the Meridian submarket.

• Industrial net absorption is at nearly 700,000 square feet, already surpassing total net absorption in 2005.

• Construction has been higher than expected in 2006 with a handful of projects slated for completion by the end of the year.

• The sale of the Zilog Building in Nampa and leases at the former Associated Foods warehouse made up a significant portion of the market’s net absorption.

• Direct vacancy increased steadily from 9.5% to 10.4% in the first half of 2006, mostly due to an increase in construction.

• Asking rates increased in the first half of 2006 and will continue to rise through the remainder of the year.

• Net absorption remains strong at over 250,000 square feet, though not at the pace of 2005.

• More than one million square feet of construction is planned over the next 18 months, though some projects may not be feasible given current construction costs.

• The areas with the strongest leasing activity were Downtown, Eagle, and Southwest Boise.

• Total vacancy decreased from 8.9% to 8.3% through the first half of 2006.

• Unanchored retail projects are currently faced with a vacancy rate of over 15%.

• Net absorption was just under 50,000 square feet for the first half of 2006. Absorption will likely see a significant increase in the second half of the year, bolstered by new construction in Nampa.

• 125,000 square feet of new construction was added to the market in the first half of the year. Projects totaling 2.5 million square feet are currently under construction.

• Leasing activity was strongest in Eagle, Southwest Boise, and Southeast Boise.