Published by Acre Commercial  |  June 2026  |  Spokane, WA / Pacific Northwest

Estimated read time: 6 minutes  |  Category: Office Real Estate, Market Analysis

Spokane’s office market in 2026 tells a tale of two cities. Downtown is navigating a prolonged vacancy correction with 28% availability in the Central Business District. Meanwhile, the suburbs — Spokane Valley, South Hill, Liberty Lake, and the West Plains — are delivering positive absorption, strong leasing activity, and a clear signal that tenants have fundamentally redefined what they need from their office space.

For tenants evaluating commercial office space in Spokane, and for investors considering acquisitions in this sector, understanding the submarket divergence is everything. Acre Commercial tracks this market quarter by quarter, and here is what the data shows.

The Headline Numbers: A Market of Contrasts

The overall Spokane office vacancy rate stands at 7.6% as of Q1 2026 — a number that reads as healthy in isolation. But that market-wide figure masks a significant split.

The Central Business District carries roughly 28% office vacancy, the result of corporate tenants downsizing square footage, the ongoing preference for remote and hybrid work arrangements, and the gravitational pull of suburban markets where parking, accessibility, and newer finishes dominate tenant decision-making.

On the positive side, leasing activity over the trailing 12 months totaled close to 1 million square feet — a 30% increase over the 2015 to 2019 annual average. The demand is there. It is just flowing toward different assets in different places.

Average asking rents across Spokane hold at $21.52 per square foot, up just 0.7% year-over-year. That modest annual growth sits against a more significant backdrop: Spokane’s 10-year cumulative office rent growth of 33.6% significantly outpaces the national average of 18.0%. Class A space commands $27.59 per square foot; Class B runs approximately $23.00.

Where Tenants Are Going: The Suburban Flight

The strongest performing Spokane office submarkets share a common profile: access, parking, and modern finishes at competitive rents.

Spokane Valley stands at 8.0% vacancy, driven by strong lease activity from medical, professional services, and education users. Notable recent deals include a 41,727-square-foot renewal by Northwest Orthopedic Specialists at Spokane Integrated Medical Plaza on South Hill and a 40,000-square-foot lease at 3900 E. Sprague Avenue in the SE North Metro corridor.

The West Plains holds at 5.8% vacancy — among the tightest readings in the entire market. F5 Networks’ 57,000-square-foot build-to-suit at 12511 E. Pinecroft Way, delivering May 2026 as the only building under construction in the entire Spokane office market, was 100% preleased before breaking ground.

The pattern is unmistakable: tenants are prioritizing functionality, modern finishes, and accessible locations over traditional downtown addresses. Landlords in the suburbs are seeing momentum. Downtown landlords are rethinking long-term strategies.

What Is Happening Downtown: The Path Forward

Downtown Spokane’s 28% office vacancy is driving a valuation reset with real financial consequences — landmark buildings like the Bank of America and Chase Bank properties have seen meaningful assessed value declines as corporate tenants continue re-evaluating square footage needs.

The most credible near-term recovery pathway for downtown is residential conversion. Downtown Spokane could support nearly 100,000 square feet of additional retail if the goal of adding 3,200 new market-rate housing units over the coming decade is achieved. By converting underperforming office space to residential and mixed-use, the city would reduce office supply overhang while building the residential density that supports retail demand.

What Commercial Tenants Should Know When Leasing Office Space in Spokane

Suburban Inventory Is Moving. Do not assume suburban vacancy means easy availability. Spokane Valley and West Plains submarkets are tight enough that desirable spaces lease quickly. Engage early and come prepared to move when the right space appears.

Downtown Offers Deep Value for the Right Tenant. If your business values walkability, downtown amenities, and landmark addresses, the Central Business District is offering lease terms and incentives that simply did not exist three years ago. For well-positioned tenants, this is a generational opportunity.

Medical and Professional Services Drive the Market. The sectors showing the strongest leasing activity are medical, professional services, and education. If your business falls into these categories, you are competing in the most active segment of the Spokane office market. Plan accordingly.

What Investors Should Know About Spokane Office Acquisitions

Office investment in Spokane is a nuanced proposition in 2026. Suburban assets with medical and professional service tenants on long-term leases represent the most defensible investment thesis — low vacancy, stable credit, and alignment with the structural trends driving tenant demand.

Only 45 office transactions closed over the trailing 12 months, totaling $65.1 million — well below the five-year average. That suppressed volume creates opportunity for buyers who can evaluate assets rigorously and move when pricing aligns with current underwriting realities.

Acre Commercial advises both tenants and investors navigating Spokane’s bifurcated office market. Contact us to discuss your office real estate objectives: 43560.com

Frequently Asked Questions: Spokane Office Space Market 2026

What is the office vacancy rate in Spokane, Washington in 2026?

The overall Spokane office vacancy rate is 7.6% as of Q1 2026. However, this market-wide figure reflects a significant submarket split: downtown Spokane’s Central Business District carries approximately 28% vacancy, while suburban submarkets like Spokane Valley (8.0%), West Plains (5.8%), and Liberty Lake are performing considerably stronger with active leasing demand.

How much does office space cost per square foot in Spokane?

Average asking rents for office space in Spokane are $21.52 per square foot as of Q1 2026, up 0.7% year-over-year. Class A space commands approximately $27.59 per square foot, while Class B runs around $23.00. Spokane’s 10-year cumulative office rent growth of 33.6% significantly outpaces the national average of 18.0%.

Why is downtown Spokane office vacancy so high?

Downtown Spokane’s approximately 28% office vacancy reflects a combination of corporate tenant downsizing, ongoing hybrid and remote work adoption, and a structural preference shift toward suburban locations with better parking, accessibility, and modern finishes. The most likely long-term recovery pathway is residential conversion of underperforming office buildings, which would reduce supply overhang and support retail demand with increased downtown population density.

Which office submarket is strongest for tenants in 2026?

Spokane Valley and the West Plains are the strongest performing office submarkets in 2026. Spokane Valley holds 8.0% vacancy with active leasing from medical, professional services, and education users. The West Plains is even tighter at 5.8% vacancy, driven by airport proximity and demand from aerospace and logistics sector users. Both submarkets offer accessible locations, modern inventory, and strong parking ratios that align with current tenant priorities.

Is it a good time to lease downtown Spokane office space?

For the right tenant profile, downtown Spokane office space represents a genuinely attractive opportunity in 2026. High vacancy (approximately 28%) has pushed landlords to offer lease terms and incentives — including tenant improvement allowances and free rent periods — that have not been available in recent years. Tenants who value walkability, downtown amenities, and prominent addresses can secure premium space at historically favorable economics.