Published by Acre Commercial (ACRE)  |  July 2026  |  Spokane, WA

Estimated read time: 8 minutes  |  Category: Industrial Market Report

The I-90 and I-84 corridors form the backbone of freight movement across the Inland Northwest, connecting Seattle-Tacoma ports through Spokane and Post Falls, then south through Boise toward the broader Mountain West distribution network. For years, that geography made industrial the easiest asset class to underwrite in this region: build it, and demand followed. That story got more complicated in 2024 and 2025, and the Q1 2026 data shows two very different recoveries happening at once along the same corridor.

Spokane’s industrial market just posted its first sustained positive absorption in two years. Boise, meanwhile, is still working through a supply overhang built during the pandemic-era construction boom. Understanding why these two markets, connected by the same freight corridor, are moving in opposite directions is the difference between buying into recovery and buying into a still-softening market.

ACRE tracks industrial leasing and construction activity across Spokane, Post Falls, and the broader North Idaho panhandle every quarter. Here’s what the current data actually shows, submarket by submarket.

Spokane Industrial: Vacancy Has Likely Peaked

Spokane’s industrial vacancy came in at 5.8% in Q1 2026, a 20 basis point improvement from 6.0% the prior quarter. That may sound modest, but it follows two consecutive years, 2024 and 2025, in which the market gave back space rather than absorbing it. The 12-month net absorption figure of 448,094 square feet is the number that matters most here: after a prolonged construction-driven vacancy spike, demand has turned decisively positive again.

Spokane’s 5.8% vacancy also compares favorably to the national industrial availability rate of 9.6%, meaning this market never got as oversupplied as the broader country, even at its softest point.

Not All Spokane Submarkets Are Equal

The headline 5.8% vacancy figure hides a sharply divided market. The SE North Metro (2.0%), NE North Metro (2.1%), and SW North Metro (1.4%) submarkets are all effectively at full occupancy, leaving almost no available large-block space for tenants who want to be in those locations. The elevated vacancy is concentrated almost entirely in two places: the Spokane CBD (8.7%) and, more significantly, the West Plains (19.3%).

For investors, that spread is the actual opportunity signal. A West Plains asset priced off the blended market vacancy rate is being mispriced relative to its true competitive set, while a North Metro asset commands a real scarcity premium that isn’t going away soon given how little vacant land remains in those pockets.

Post Falls and the North Idaho Panhandle

Just across the state line, Post Falls has continued to see new industrial construction activity, and large listings that sat empty on both the west and east sides of town, along with sites straddling the Washington-Idaho border, are finally filling up. Coeur d’Alene’s industrial market posted 6.4% vacancy in Q1 2026, alongside a rare rent decline, a sign that even as space fills in, landlords are still competing on price to close deals in this submarket.

Together, Spokane and the North Idaho panhandle form a single functional industrial market for many tenants, and investors should underwrite them that way rather than treating the state line as a meaningful boundary.

Boise: Still Working Off a Construction Hangover

Boise’s industrial story looks very different. Net absorption fell 74.1% quarter over quarter to just 167,000 square feet in Q1 2026, and vacancy climbed to 9.2%. Since 2022, the metro has added roughly 8 million square feet of industrial space, with another 8 million under construction, a scale of new supply that continues to outpace demand. Between Q1 2023 and Q1 2026, the market delivered about 7.5 million square feet against only 4.1 million square feet of net absorption.

There is a silver lining: asking rents were still up 2.7% year over year even as they dipped slightly quarter over quarter, and demand has remained broadly positive in all but two quarters since 2025.

What This Means for Industrial Investment Along the Corridor

Reading Spokane and Boise together tells a clearer story than reading either market alone. Spokane’s tightest submarkets are functionally full, its overall vacancy is improving, and it sits well below the national average, favorable conditions for owners of existing product and a signal that new construction in the right North Metro locations could be timed well. Boise, despite strong long-term fundamentals and continued population growth, needs more time to absorb the space already delivered before rents and vacancy tighten meaningfully.

For an investor choosing where to deploy industrial capital along this corridor in 2026, Spokane’s North Metro submarkets and the Post Falls/Coeur d’Alene panhandle currently offer the more favorable entry point, while Boise favors patient capital willing to wait out the absorption cycle for a market with strong underlying demographic tailwinds.

Frequently Asked Questions: Industrial Absorption Along I-90/I-84

What is the industrial vacancy rate in Spokane in 2026?

Spokane’s industrial vacancy was 5.8% in Q1 2026, down from 6.0% the prior quarter, and well below the national industrial availability rate of 9.6%. Vacancy varies significantly by submarket, from as low as 1.4% in SW North Metro to 19.3% in West Plains.

Is Boise a good market for industrial real estate investment right now?

Boise has strong long-term fundamentals, including population growth and continued rent gains of 2.7% year over year, but the market is still absorbing a large wave of construction delivered since 2022. Vacancy rose to 9.2% in Q1 2026 and quarterly absorption slowed sharply, suggesting the market favors patient, longer-hold investors over those seeking immediate stabilization.

Why is there such a big vacancy gap between Spokane submarkets?

The gap reflects land availability and existing tenant concentration. North Metro submarkets have little available industrial land left and are functionally full, while West Plains has absorbed more new construction and carries more vacant space as a result. Investors should evaluate Spokane industrial deals at the submarket level, not the market-wide average.

Should I invest in Spokane or Boise industrial real estate in 2026?

It depends on your risk tolerance and hold period. Spokane’s tightest submarkets currently offer more immediate stability and pricing power due to functional full occupancy. Boise offers a longer-term growth story but requires patience while the market absorbs recent construction. Many investors are pairing both: stabilized Spokane assets for near-term cash flow and Boise positions for longer-term appreciation.

How Acre Commercial Helps Investors Navigate Industrial Opportunities

Acre Commercial tracks industrial leasing activity, vacancy, and construction pipelines across Spokane, Spokane Valley, Post Falls, and Rathdrum on a quarterly basis, giving investors submarket-level clarity that broad regional averages can’t provide. We work directly with owners, developers, and investors to identify which submarkets are genuinely tight, like Spokane’s North Metro pockets, versus which carry vacancy that isn’t reflected yet in asking prices.

If you’re evaluating an industrial acquisition or development site anywhere along the I-90 corridor, our team can walk through current leasing comps, tenant demand by building size, and construction pipeline data specific to your target submarket.

Contact Acre Commercial: 43560.com