Spokane and Coeur d’Alene are the two markets we work in every day, and the latest CoStar data provides a read on where each one stands heading into the fourth quarter. Here’s what the numbers show, and what they mean if you own, lease, or are evaluating industrial property in either market.
Spokane
Spokane’s industrial inventory sits at roughly 57.1 million square feet, with vacancy at 6.3%, still below the national industrial average of 7.5%. The market posted negative net absorption of about 197,000 square feet over the trailing 12 months, a real pullback from the demand levels seen in 2021 and 2022. Deliveries have slowed even faster than demand, though: only 106,000 square feet delivered over the same period, and there is just 400,000 square feet under construction market-wide, less than 1% of existing inventory and nearly 79% pre-leased. Developers have largely stopped building on spec.
Asking rents average $9.58 per square foot, up 0.9% year over year, slower than the 1.3% national pace but still tracking a five-year cumulative gain of 21.5%.
The segment-level detail matters more than the market average here. Specialized, owner-user-style industrial is essentially full at 2.4% vacancy and still tightening. Logistics space sits at 7.6% vacancy, above the market average, largely tied to recent big-box deliveries in the West Plains. Flex space, the small-bay product used by trades and light assembly, has climbed to 15.2% vacancy, more than double the market average and the clearest soft spot in Spokane overall right now, largely due to new deliveries in Spokane Valley.
On the investment side, Spokane closed the trailing 12 months with about $90.0 million in sales volume across 56 trades. The average deal was under 20,000 square feet at roughly $121 per square foot, with closing prices typically landing about 10% below initial ask. Private capital drove nine out of ten deals in the first half of 2026, while owner-users accounted for more than 65% of volume. Cap rates on recent trades have settled in the low to mid-7% range.
Coeur d’Alene
Coeur d’Alene’s industrial market is smaller, roughly 10.9 million square feet, but it’s telling a different story than Spokane at the moment. Vacancy sits at 5.9%, and the market posted positive net absorption of about 95,000 square feet over the trailing 12 months, even as deliveries slowed to just 45,300 square feet. Under construction stands at only 52,400 square feet, half a percent of existing stock, well below the market’s 10-year average of 280,000 square feet under construction. Like Spokane, new supply has essentially shut off here.
Rents average $10.66 per square foot, higher than Spokane on a per-square-foot basis, though growth has cooled sharply to just 0.1% year over year, down from a five-year average of 3.8% and a 10-year average of 4.6%. Specialized industrial vacancy is tight at 2.4%, flex sits at a healthy 4.1%, and logistics is the softer segment at 8.1% vacancy, a residue of the speculative building wave that hit the market in 2023 and 2024.
Investment sales activity is modest by comparison to Spokane, $12.3 million in trailing 12-month volume across roughly 38 trades, with average market pricing around $134 per square foot and cap rates in the high-6% to low-7% range varying based on lease terms and tenant strength. Post Falls and Hayden together account for about three-quarters of the market’s inventory and remain where most of the leasing and construction activity is concentrated. Kootenai Health’s planned Prairie Medical Campus in Post Falls is one of the larger institutional projects worth watching, along with continued population growth in the region. The metro added roughly 3,500 residents over the past year and more than 20,000 since 2020, which keeps supporting demand for both industrial space and the services around it.
What We’re Watching
Construction has slowed to a near-standstill in both markets, which sets up the conditions for vacancy to compress again once demand firms up, particularly in the segments carrying the most current vacancy: Spokane’s flex product and Coeur d’Alene’s logistics space. If you’re an owner in either of those segments, competitive positioning and tenant improvement dollars matter more right now than they did two years ago. If you’re an occupier or investor sizing up either market, the segment-level data tells a more useful story than the market-wide averages do.
If you want the full CoStar reports for either market, or want to talk through what these numbers mean for a specific building, listing, or acquisition, reach out and we’ll walk through it together.
Omar Sadaoui is a commercial real estate broker with SVN | Cornerstone Commercial, specializing in industrial leasing and sales across Eastern Washington and North Idaho. Data referenced in this post is sourced from CoStar Group’s Q3 2026 Spokane and Coeur d’Alene Industrial Market Reports.