The heart of the city is currently facing a difficult "valuation reset" as office vacancy rates climbed to roughly 28% in late 2025. This has led to millions of dollars in lost assessed value for landmark assets like the Bank of America and Chase Bank buildings, as corporate tenants continue to re-evaluate their square footage needs. Despite these headwinds, the city is pivoting toward residential-led revitalization, with local reports suggesting downtown could support nearly 100,000 square feet of additional retail if the goal of adding 3,200 new market-rate housing units is met over the coming decade. (Source: The Spokesman-Review / Downtown Spokane Housing and Economic Report)

Located on a former rail yard northwest of downtown, Kendall Yards is a national model for "new urbanism" and mixed-use success. As of early 2026, the neighborhood is expanding into its "West End," with developers exploring more single-floor condominium projects like "The Hamblen" to meet the demand from downsizers and young professionals. The district boasts nearly 100% retail occupancy, with its storefronts, restaurants, and "incubator" leasable spaces benefiting from high foot traffic along the Centennial Trail and a resident population that continues to see strong equity gains. (Source: The Spokesman-Review - "The Dirt" / Greenstone Development Reports)

Often acting as the "business-friendly" alternative to the city core, Spokane Valley is seeing a surge in professional and medical office builds. Recent activity in early 2026 includes the development of multi-suite commercial buildings and the expansion of specialized manufacturers like AMI Metals, which recently secured a 12-acre site for a new 100,000-square-foot facility. The area is characterized by a "neutral" market where inventory is reasonable and home values remain stable, providing a predictable environment for small-to-mid-sized commercial tenants who prioritize easy freeway access and ample parking. (Source: City of Spokane Valley Business Activity Report / Nick Briggs Realty Trends)

Positioned just east of downtown, this 770-acre district is Spokane’s premier hub for life sciences and higher education innovation. The area has already attracted over $1 billion in investment, highlighted by the "smart city" eco-district at South Landing, which features the energy-efficient Catalyst Building. For 2026, development is focused on the "Next Generation" conceptual plan, which aims to add another 1,000 housing units and significant institutional and laboratory space, bridging the gap between the healthcare giants in the lower South Hill and the tech talent emerging from the district’s five resident universities. (Source: Mithun Next Generation Plan / NAIOP Catalyst Building Case Study)

This is the region’s industrial and logistics engine, benefiting from its proximity to Spokane International Airport and the I-90 corridor. Following a period of cooling in 2024, the sector enters 2026 with renewed momentum, particularly in the "infill" industrial and data center segments where vacancy rates remain as low as 2.1%. While big-box warehouse vacancy rose to nearly 11% nationally, the West Plains continues to attract specialized manufacturing and distribution users who are drawn to the area’s relatively lower land costs and robust power infrastructure compared to coastal markets. (Source: Kidder Mathews Industrial Outlook / Western U.S. Market Forecast)