The Office market in the Coeur d’Alene region is expected to remain steady but supply-constrained due to high construction costs. While 163,000 square feet of new office space was delivered in 2024—36 percent of which was speculative—future speculative development is likely to be limited as developers remain cautious. Currently, only 45,000 square feet of office space is planned or under construction, with owner-users driving most new projects.

North Idaho’s Industrial market is expected to remain tenant-favorable as high vacancy levels are likely to put downward pressure on lease rates. Overall lease rates have dropped 3 percent, from $1.00 per square foot to $0.95 per square foot (NNN, monthly), with Post Falls seeing the lowest rates at $0.93 per square foot, where vacancy remains an elevated 31.2 percent. While there is pent-up demand from local businesses looking to expand, high costs have made it difficult for tenants to grow.

In 2024, the Boise Investment market experienced a moderate slowdown compared to the previous year. Total transaction volume decreased by 16 percent, falling from $574 million in 2023 to $482 million in 2024. In addition, number of deals also declined year-over-year by 5 percent. The office sector was particularly impacted, with the number of deals down by over 50 percent from 2023. Despite a decrease in transaction volume, the multifamily sector still led the market in sales volume, recording over $162 million in 2024.

Transaction volume is down 16% compared to 2023, marking the lowest level seen since 2016. The multifamily sector accounted for over 34% of sales volume. 

In 2024, net absorption in the Boise Industrial market saw a 36 percent decline, totaling just over 1.5 million square feet. This marks the first time in four years that absorption has fallen below 2 million square feet.

Despite this decrease, the number of transactions increased by more than 16 percent, driven by a surge in smaller deals. Over 1.8 million square feet of industrial space was absorbed by tenants expanding or opening new locations in 2024, highlighting that organic growth remains the primary driver in the Boise industrial market.

TOK Commercial is proud to announce the promotion of JP Green and Sam McCaskill to partners. This milestone reflects their outstanding contributions, dedication to client success, and organizational leadership.