Spokane Commercial Office Space for Rent

Home >

Spokane >

Q3 2026

Q3 2026

Q3 2026 Spokane Commercial Real Estate Market Report

Focus: Q3 2026 Market Trends

Executive Summary

Spokane's industrial pipeline is growing in Spokane Valley and the West Plains, with Crown West building an 87,000 SF warehouse on Barker Road and McKinstry planning a 95,000 SF fabrication facility in Airway Heights. Downtown office vacancy remains high at about 30%. On TenantBase, Spokane tenant searches split between retail (53.8%) and office (46.2%), with office share rising from 10.0% in Q2.

Sector Snapshot

Office: Tenant-favorable downtown. Downtown vacancy is about 30%, against a 15% target.
Industrial: New supply. Several Spokane Valley warehouse projects are delivering in 2026.
Retail: Leading demand. Retail was 53.8% of TenantBase searches.
Economy: Mixed. Nonfarm jobs were down 0.8% year over year, while education and health added 1,400 jobs.

Spokane Tenant Demand Index

The TenantBase Tenant Demand Index tracks what businesses across the Spokane region are actively searching for on the TenantBase platform each quarter. Because it measures tenant intent before leases are signed, it shows where demand is heading ahead of traditional vacancy and absorption data.

Q3 2026 Search Share by Space Type (July 1 to September 30, 2026)

Retail/Storefront: 53.8%
Office: 46.2%
Warehouse/Industrial: 0.0%

Three-Quarter Trend

Retail/Storefront: 58.1% in Q1, 68.3% in Q2, 53.8% in Q3
Office: 9.5% in Q1, 10.0% in Q2, 46.2% in Q3
Warehouse/Industrial: 33.8% in Q1, 21.7% in Q2, 0.0% in Q3

Key Takeaways

Office demand rose sharply, from 10.0% of searches in Q2 to 46.2% in Q3.
Short terms lead. Terms under one year were the most requested for both office and retail.
Requirements are small. Short-term office searches averaged 500 to 1,000 SF.
Downtown, Liberty Lake/Spokane Valley, and Coeur d'Alene drew the most location interest.

Office Market

Market Conditions (Spokane Journal of Business, July 2026)

Downtown vacancy: about 30%, against a 15% target (Downtown Spokane Partnership)
Class A rent: about $27/SF at Old City Hall, up from about $24 in 2024
Activity: Clearwater Paper completed a $4 million headquarters renovation at the Bank of America Financial Center

TenantBase Office Activity

Demand share: 46.2% of Spokane tenant searches, up from 10.0% in Q2 and 9.5% in Q1.

Lease terms: Terms under one year were the most requested, with a smaller share seeking 3 years or longer.

Space requirements by term:

Less than 1 year: 500 to 1,000 SF
3 to 5 years: 2,500 to 5,000 SF

TenantBase data vs. the market: Spokane office tenants on TenantBase are seeking small spaces on short terms. With downtown vacancy near 30%, these tenants have strong negotiating leverage and a wide choice of buildings.

Industrial & Warehouse Market

New Development

Crown West Barker Logistics Building Three: 87,000 SF at 3614 N. Barker Rd in Spokane Valley, with up to four 21,000 SF spaces, completing by the end of 2026 (Spokane Journal of Business)
4524 N. Barker Rd: a 111,900 SF, seven-building project in Spokane Valley (Spokane Journal of Business)
McKinstry: a planned 95,000 SF fabrication facility in Airway Heights, targeted for 2027 (Spokesman-Review)

TenantBase Warehouse Activity

Demand share: 0.0% of Spokane tenant searches, down from 21.7% in Q2 and 33.8% in Q1.

TenantBase data vs. the market: No warehouse searches were recorded on TenantBase in Q3, while developers continue adding small-bay space in Spokane Valley. New 21,000 SF units on Barker Road will give smaller industrial tenants more options in 2027.

Retail Market

TenantBase Retail Activity

Demand share: 53.8% of Spokane tenant searches, compared with 68.3% in Q2 and 58.1% in Q1.

Lease terms: Terms under one year were the most requested, followed by 1 to 2 year and 3 to 5 year terms.

Space requirements by term:

1 to 2 years: 500 to 1,000 SF
3 to 5 years: 5,000 to 10,000 SF

TenantBase data vs. the market: Spokane retail tenants on TenantBase are mostly seeking short-term space, with interest spread from Downtown to Liberty Lake and Coeur d'Alene.

Development & Economic Drivers

Jobs: Spokane County had 263,900 nonfarm jobs in August, down 0.8% year over year, with unemployment at 4.1% (Washington Employment Security Department)
North Spokane Corridor: the Trent interchange began in June 2026, and WSDOT targets full completion in late 2030 (Spokesman-Review)

Q4 2026 Outlook

Office: Expect downtown to remain tenant-favorable, with strong leverage for small users.
Industrial: Expect new Spokane Valley small-bay space to add options for growing businesses.
Retail: Expect short-term and small-format demand to continue.

Frequently Asked Questions

What type of commercial space are Spokane tenants searching for in 2026?

In Q3 2026, 53.8% of Spokane tenant searches on TenantBase were for retail space and 46.2% for office space.

What is the downtown Spokane office vacancy rate?

Downtown Spokane office vacancy is about 30%, according to the Downtown Spokane Partnership, as reported by the Spokane Journal of Business in July 2026.

What new industrial space is coming to Spokane?

Crown West is building an 87,000 SF warehouse on Barker Road in Spokane Valley, and McKinstry plans a 95,000 SF facility in Airway Heights.

How can I find commercial space in Spokane at no cost?

TenantBase matches business tenants with vetted independent tenant rep brokers across the Spokane region at no cost to the tenant. Brokers are compensated by the landlord. Get started with TenantBase.

Sources

Disclaimer

Information in this report is aggregated from third-party sources and TenantBase proprietary platform data, and was synthesized with the assistance of AI. Market metrics reflect the most recent published data available at the time of writing. TenantBase search data reflects tenant activity on the TenantBase platform and is not a measure of total market leasing. All figures should be independently verified before making real estate decisions.

We have detected that you are running an unsupported browser.