Boise Commercial Office Space for Rent

Q4 2025

Boise Commercial Real Estate Market Report

Focus: Q4 2025 Market Trends

Executive Summary

The Boise commercial real estate (CRE) market in late 2025 continues to demonstrate resilience, outperforming many national benchmarks despite broader economic headwinds. The Multifamily sector remains a standout, with robust demand absorbing new supply and rent growth rebounding [3]. Industrial fundamentals are stabilizing after a period of rapid construction, with leasing activity picking up in Q3 [5]. Office vacancy remains significantly lower than the national average, supported by job growth and in-migration [2, 6]. Retail faces some headwinds with rising vacancy but maintains tight cap rates compared to other sectors [1, 2].

TenantBase Proprietary Data [7] highlights the distribution of active tenant demand over the last 90 days:

  • Retail/Storefront led market activity with 46.67% of all searches [7].
  • Warehouse was the second most active sector at 38.89% [7].
  • Office accounted for 15.56% of total search volume [7].

Office Market

Market Overview Boise's office market is bucking national trends of distress, characterized by single-digit vacancy rates in key submarkets and steady demand from small-to-mid-sized tenants.

  • Vacancy & Availability: The market vacancy rate is reported at 11.8%, notably lower than the national average of nearly 20% [2, 6]. Stabilized vacancy in multi-tenant buildings has hovered near 10.0% earlier in the year, signaling a healthy balance [4].
  • Rental Rates: Asking rents have edged up to approximately $22.00 per SF (Full Service), reflecting landlord confidence in the market's stability [4].
  • Market Drivers: Unlike major metros grappling with large corporate downsizings, Boise's office demand is driven by regional growth and a lack of speculative oversupply [4, 6].
  • Tenant Preferences: TenantBase data reveals a strong preference for flexibility, with 58.33% of office inquiries seeking leases of Less than one year [7].

TenantBase Activity [7]

  • Demand Share: Office accounted for 15.56% of total search volume [7].
  • Lease Term Preference: Demand is split between short-term flexibility and mid-term stability:
    • Less than one year: 58.33% of deals [7].
    • 2-3 Years: 41.67% of deals [7].
  • Size Requirements: Tenants seeking short-term leases are looking for suites averaging 667–1,500 SF, while those committing to 2-3 Years typically need smaller footprints of 500–1,000 SF [7].

Industrial & Warehouse Market

Market Overview The Boise industrial market is "recalibrating" after a construction boom, with vacancy rising as new supply delivers, but demand remains healthy.

  • Vacancy & Rent: Vacancy rose to 8.9% in Q3 2025 due to a surge in speculative deliveries [2]. However, net absorption turned positive (+83,000 SF) in the third quarter, signaling renewed tenant interest [5].
  • Construction: The pace of new construction has slowed significantly, with deliveries down 63% year-over-year, which will help vacancy rates compress in 2026 [2, 5].
  • Leasing Highlights: TenantBase data indicates a preference for short-to-mid-term leases, with 42.11% of warehouse inquiries for 1-2 Year terms [7].

TenantBase Activity [7]

  • Demand Share: Warehouse accounted for 38.89% of total search volume [7].
  • Lease Term Preference: Tenants are favoring shorter commitments during this adjustment period:
    • 1-2 Years: 42.11% of deals [7].
    • 2-3 Years: 26.32% of deals [7].
    • Less than one year: 15.79% of deals [7].
  • Size Requirements: The average lower size requirement for warehouse space is 4,000 SF for 1-2 year terms [7].

Retail Market

Market Overview Boise's retail sector is seeing mixed signals, with vacancy ticking up but investor interest remaining strong due to the region's population growth.

  • Vacancy & Availability: The market recorded its sixth consecutive quarter of increasing vacancy in Q3 2025 [2]. However, cap rates for retail assets remain tight at 5.8%, indicating sustained investor demand for well-located centers [1].
  • Demand Drivers: The region's 3.0% annual population growth continues to fuel demand for services and goods, supporting long-term fundamentals [3].

TenantBase Activity [7]

  • Demand Share: Retail/Storefront activity dominated with 46.67% of all search volume [7].
  • Lease Term Preference: Retail tenants show a clearer preference for stability compared to other sectors:
    • 3-5 Years: 28.57% of deals [7].
    • 2-3 Years: 25.00% of deals [7].
    • 1-2 Years: 17.86% of deals [7].
  • Top Locations: Tenant interest is distributed across the valley, led by Boise (8 deals), Meridian (7 deals), and Nampa (6 deals) [7].

Multifamily Market

Market Overview The multifamily market is a bright spot, with strong demand absorbing the recent wave of supply and driving rent growth.

  • Vacancy & Occupancy: Stabilized vacancy improved to 4.5% in Q3 2025, down 30 basis points year-over-year [3]. Overall vacancy, including lease-up properties, sits higher at 6.9% [3].
  • Rents: Effective rents rose 1.7% year-over-year to $1,685 per unit, rebounding from previous softness [3].
  • Absorption: Net absorption reached 2,359 units year-to-date, marking the 11th consecutive quarter of positive demand [3].
  • Construction: New starts have slowed due to costs, with the pipeline shrinking to 1,713 units underway, which will support tighter conditions in 2026 [3].

2026 Outlook

Looking ahead to 2026, the Boise market is positioned for continued expansion, supported by nation-leading demographic trends.

  • Population Growth: Boise led the nation with 3.0% annual population growth in 2025, a trend expected to persist and drive demand across all asset classes [3].
  • Investment Activity: With interest rates expected to moderate, transaction volume is forecast to pick up, particularly for multifamily and retail assets [1].
  • Housing Market: Home prices are projected to appreciate by 4-6% annually through 2026, which will keep the rental market robust as affordability remains a hurdle for some buyers [8].

Sources

  1. TOK Commercial: Q3 2025 Boise MSA Investment Market Trends
  2. Cushman & Wakefield: Boise MarketBeats Q3 2025
  3. Cushman & Wakefield: Boise Multifamily MarketBeat Q3 2025
  4. TOK Commercial: Boise MSA Office Market Bucks National Trends
  5. CBRE: Boise Industrial Figures Q3 2025
  6. PwC: Emerging Trends in Real Estate 2025 - Boise
  7. TenantBase Proprietary Market Data (Boise - Last 90 Days)
  8. Home Found Boise: Housing Market Forecast 2026

Information in this report is aggregated from various third-party sources and synthesized using artificial intelligence and other research tools. While we believe these sources to be reliable, we cannot guarantee the absolute accuracy or completeness of the data. This report is intended for informational purposes to provide market insight and should be independently verified prior to any use in a real estate transaction or legal commitment.