2025 North Idaho Market Outlook
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.
TOK COMMERCIAL WELCOMES DREW ULRICK
TOK Commercial is pleased to announce the addition of Drew Ulrick to the firm’s Inland Northwest brokerage services team.
Mr. Ulrick is a highly accomplished industry professional and one of Spokane’s leading commercial real estate agents. His career spans over 11 years offering his clients exceptional market knowledge and representation capabilities. Mr. Ulrick has advised a wide variety of industrial and retail tenants, landlords, owners, buyers, and investors, guiding them through project lease-ups, acquisitions, and dispositions of commercial real estate, assets.
Midyear 2024 North Idaho Market Trends
North Idaho's Industrial market saw over 630,000 square feet of new Class A space come online with over 90 percent delivering in Post Falls. A large portion of this is attributed to the buildings at 140 & 150 Beck Road that completed earlier this year and added more than 400,000 square feet of space to the market. All the new space has pushed total vacancy up to 19.5 percent. Overall lease rates are also up 7 percent from the beginning of the year averaging $1.07 per square foot (NNN, Monthly) with Class A rates averaging slightly higher at $1.10 per square foot with some new construction reaching as high as $2.00 per square foot.
September Markets Update
Idaho Commercial Real Estate Markets Update | September 2024
Q1 2024 North Idaho Office Vacancy Trends
Multitenant office vacancy in North Idaho ended 2023 at 10.7%. Total office vacancy in the area (includes single-tenant buildings) ended the year at 4.4%.
Subscribe to TOK Commercial's North Idaho Market updates, here.