Boise MSA Office Market Bucks National Trends in 2025 with Growth

Submitted by Marketing Team on Sat, 06/07/2025 - 16:47
Boise Office Market Grows in 2025

📉 National Office Market in Decline (2025)

  • Record‐high demolitions/conversions: In the U.S. office market, office-to-residential conversions and demolitions are outpacing new construction by a wide margin. By the end of 2025, approximately 23.3 million sf will be removed, compared to only 12.7 million sf of new office space — the first time in 25 years that teardowns outstrip completions (nypost.com).

  • Persistently weak valuations: Office-building values continue sliding—prices dropped by about 11% in 2024, and are down 37% since 2019. Analysts forecast further declines through 2025–2029 (businessinsider.com).

  • Elevated vacancies: With vacancy rates hovering near 19–20%, national leasing demand remains slack even as some companies attempt return-to-office initiatives (businessinsider.com).

Bottom line: Structural shifts—like remote work and functional obsolescence—are hollowing out the national office footprint. Landlords are either repurposing or liquidating underutilized office assets.


đŸŒ± A Boise Exception: Steady Growth

Contrary to national trends, Boise’s office market displayed resilience and modest improvement in Q1 2025:

  • Vacancy easing: Boise’s multitenant vacancy rate declined from 10.4% in Q4 2024 to 10.0% in Q1 2025, marking the lowest vacancy rates since mid‑2024 (TOK Commercial)

  • Rising lease rates: Even with new supply hitting the market, lease rates edged up slightly—from $21.50 to $22.00/sf (FLSV, annual)  (TOK Commercial).

These signs point to continued market strength in Boise, supported by consistent demand and limited new supply—quite the outlier compared to national metrics.

Explore TOK Commercial's data for the Boise MSA's market growth: 

 


🔍 Why Boise is Bucking the Trend

  1. Market discipline on supply: Unlike many large metro areas, Boise hasn’t experienced a glut of speculative office projects. This restraint helped maintain healthy vacancy and absorption levels.

  2. Balanced demand: While Boise isn’t immune to remote-work trends, its expanding industries—such as tech, healthcare, and state government—continue to drive moderate growth in space utilization.

  3. Disciplined property owners: Boise’s landlords are maintaining healthy occupancy levels and favorable pricing strategies.


✅ Final Thoughts

Market National Office Sector (2025) Boise Office Market (Q1 2025)
Vacancy ~19%–20%, at historical highs 10.0%, improving from 10.4%
Construction 23.3M sf removed vs. 12.7M sf added Minimal speculative supply
Valuation Falling—prices dropped ~11% in 2024; another 10% decline forecast Stable to modestly rising lease rates
Market Action Conversions/demolitions ramping; prices weak Leasing steady; conversions not yet needed

 

Boise stands apart. Its thoughtfully balanced supply, local demand momentum, and steady landlord leasing decisions are producing resilience, while major markets across the U.S. are retrenching dramatically.


As the U.S. office landscape continues shrinking in 2025, Boise’s market trends indicate a disciplined marketplace delivering positive, stable consistencies.

Read more about the national office market here:

 

 

 

Six Locations to Serve You

Boise Office
250 S 5th Street, 2nd Floor
Boise, Idaho 83702
Main Phone: 208.378.4600
 

Nampa Office
16150 N. High Desert Street, Suite 200
Nampa, Idaho 83687
Main Phone: 208.378.4600

Twin Falls Office
195 River Vista Place, Suite 204
Twin Falls, Idaho 83301
Main Phone: 208.944.9694

Idaho Falls Office
1135 Pier View Drive, Suite 120
Idaho Falls, Idaho 83402
Main Phone: 208.227.8148

Coeur d'Alene Office
3322 N. Grandmill Lane
Coeur d'Alene, Idaho 83814
Main Phone: 208.449.1908

Spokane Office
717 W. Sprague Ave. Suite 1202
Spokane, Washington 99201
Main Phone: 509.606.5090