Spokane County Multifamily Market Update – September 2026

by | Sep 30, 2026 | Advisor Insights, Blog, CRE Trends

This September Spokane County multifamily market update covers new emergency tenant protections, current opportunities for buyers, and how sellers are navigating today’s financing environment.

 

SPOKANE COUNTY MULTIFAMILY MARKET UPDATE – AROUND TOWN

1.

Spokane City Council passed a new emergency tenant protection ordinance on September 9 in response to the Spokane Complex Fires. Qualifying tenants must experience at least a 10% reduction in average monthly household income directly related to the emergency and pursue qualifying assistance. Eligible tenants may have an affirmative defense against eviction for covered nonpayment while the emergency declaration remains in effect, which currently has no fixed end date. Once the emergency ends, tenants have an additional 12 months to repay covered unpaid rent. The rent is not forgiven and remains owed to the landlord. City of Spokane: Emergency Tenant Protections

2.

With interest rates ticking up and transaction activity moderating, I believe this is an excellent time to buy multifamily real estate in Spokane County, with better cap rates and more attractive bases than we have seen since before COVID. While higher rates have changed how deals are structured, small rate movements should be kept in perspective. On a $1 million acquisition with 25% down, a 25 basis point increase adds only about $127 per month in debt service, while buying at a better basis and higher cap rate can help offset higher borrowing costs. Buying before year end can also create significant 2026 tax savings. On a $5 million acquisition, a cost segregation study and 100% bonus depreciation could potentially generate around $1 million in first year depreciation, resulting in up to about $326,000 in federal tax savings for an eligible single filer with $1 million of taxable income. I closed a deal on December 31, 2025, where the year end acquisition helped the buyer realize hundreds of thousands of dollars in tax savings in 2025. Check with your CPA to see how this could apply to your tax situation.

3.

Sellers can still achieve positive outcomes in the current market, as buyer interest remains, but the way deals are getting done has changed. Traditional financing deals are still getting done, but pricing has adjusted to account for higher borrowing costs. At the same time, more buyers are pursuing cash purchases or seller financing. In my experience, seller financed deals typically command around a 10% premium in price compared to cash or traditionally financed transactions, making seller financing an attractive option for owners who have the ability to offer it.

AUGUST SALES

FEATURED LISTINGS

SHARP APARTMENTS
$1,900,000 | 16 UNITS

THE HOWARD BUILDING
BACK ON THE MARKET
$1,800,000  |  9.01% CAP RATE  |  $42,857 PER UNIT

EASTSIDE ESTATES
UNDER CONTRACT!

LINCOLN APARMENTS
$799,950 | 9 UNITS

29TH AVE FOURPLEX
$685,000 | 4 UNITS

ASH APARTMENTS
$495,000 | 7 UNITS

For a monthly comparison, see our Spokane County Multifamily Market Update – August 2026.

Want to learn how we can help you with your business? Reach out today!

Jordan Lester, CCIM, MBA, specializes in advising clients with the acquisition and disposition of multifamily investment properties. With a primary focus in Spokane County and an expert understanding of the latest market trends, Jordan is committed to maximizing his client’s financial goals to achieve their real estate objectives. Jordan began his real estate career as a broker’s assistant for three years with SVN Cornerstone, which gave him valuable knowledge and experience to jumpstart his career as a broker. To get in touch with Jordan, email jordan.lester@svn.com or call 509.496.6922