Real Estate

WHAT TO EXPECT WHEN LOOKING FOR YOUR DREAM HOME

P.S. WE LOVE OUR PETS AROUND HERE

PAUL KENNY

MATT BOGUE

COMMERCIAL REAL ESTATE

PAUL KENNY COMMERCIAL OVERVIEW

BY MATT GELSO

The name of the game in the South Valley the past year has been “Get it while you can!” Fueled by low interest rates and national migration patterns, there has been an exponential change in commercial (and residential) real estate pricing, and in the demographic structure of the Wood River Valley’s southern communities.

Indicative of the economic activity in Hailey, the City of Hailey Local Option Tax (LOT) collections for 2021 came in at a record $812,000. This eclipses the pre-pandemic LOT collection record set in 2019 by almost 18%.

Multifamily Housing Activity: From 2016 to 2019 the City of Hailey approved an average of 38 multifamily units each year. 2020 and 2021 saw an average of almost 131 units approved each year – that’s a 237% increase. This still has not met the Valley's voracious appetite for workforce housing, but there are projects on the horizon in Hailey and Bellevue. ARCH, North Blaine County Fire District, and Blaine County are all making material investments to ‘move the needle’ on housing solutions.

Commercial Office & Retail Activity: If you have tried to find office or retail space in the South Valley, you know the inventory is almost zero. Rents are increasing, but still have not reached a level at which investors are incentivized to build new inventory. However, this has not discouraged investors from buying existing product. Our office, Kenny-Bogue Commercial Real Estate, listed the Marketron Building on River Street (now re-named the Sawtooth Business Center) for sale. We represented the buyers of the property, and were under contract within 10 days. The 17,000 sf building will now have office suites available for lease. The historic Mint restaurant/bar/nightclub on Main Street is for sale again, and is turn-key ready for the perfect operator.

Eccles Flying Hat Ranch Update: It sounds like the east side of the ranch will be annexed by both Hailey AND Bellevue, split by the two cities, with the BCRD controlling a buffer in-between for open space and/or sports fields. When the development comes together, we can expect the full range of property types – multi- and single-family housing, workforce housing, light industrial/ shop/warehouse, and office/retail properties.

The positive local economic trends of the past 18 months are likely to continue through 2022 and into 2023. The Wood River Valley ‘bubble’ does not always follow the national average. And, there is not much that is average about our communities.

Thanks to Matt Gelso, an integral part of the Kenny-Bogue team, for helping put together this piece. Paul Kenny, Matt Bogue, and Matt Gelso have a combined 48 years of experience with commercial real estate sales, leasing, investments, and development in the Wood River Valley.