The Boise MSA Office market is navigating a complex landscape shaped by persistent inflation, elevated interest rates, and broader economic uncertainty. These factors have created a more cautious business climate, influencing tenant decision-making and leasing activity. Despite these headwinds, Q1 2025 saw a 5 percent increase in the number of transactions compared to the same period last year—marking more first-quarter transactions than the past two years. The number of deals involving businesses expanding or adding locations was up 10 percent from Q1 2024 as organic growth continues to drive leasing activity.
Following the national trend, the Office market in the valley is showing signs of gradual improvement, despite the persistently difficult business environment. Organic growth remains a key driver of leasing momentum, with 39 percent of transactions in the last 12 months involving local businesses either opening new locations or expanding existing operations—a 10 percent increase over this time last year. Notably, four of the top five move-ins this quarter were tied to business expansion. In contrast, however, four of the five largest move-outs were companies either exiting the market or shutting down, underscoring current challenges. Multitenant vacancy dropped from 10.4% in Q4 2024 to 10.0% in Q1 2025 which is the lowest it has been since mid-2024.
Overall average asking lease rates rose 7 percent year-over-year, reaching a new high of $22.00 per square foot (FLSV, annual). While Class A rates dipped slightly, from $24.75 to $24.00, the South Meridian and Eagle submarkets continue to command the highest rates, averaging around $28.00 per square foot. Overall average asking lease rates bumped up slightly from $21.50/SF, FLSV (annual) in Q4 2024 to $22.00/SF, FLSV (annual) in Q2 2025.
Elevated labor costs and a shortage of available contractors are likely to limit new office development through 2025, with owner-users remaining the primary drivers of new construction. Even so, ongoing local expansions and steady tenant activity signal enduring resilience and long-term potential in Boise’s office market.
To learn more about current office leasing or sales opportunities, please connect with our Office Brokerage Specialists!