Markets/Spirit Lake
Small Town · Kootenai County, Idaho

Spirit LakeCommercial Real Estate Guide

A historic lumber town on Highway 41, about 20 minutes north of Rathdrum. A National Register downtown on Maine St, Timberlake High School, and the lake that gives the town its name.

2,485
Population, 2025
Census
+6.3%
Growth since 2020
Census
$65,192
Median household income
Census ACS
11,000
Vehicles a day on SH-41
ITD 2025
4,275
Projected population, 2045
KMPO
Overview

Why Spirit Lake

Spirit Lake was founded in 1907 by the Panhandle Lumber Company, and the old downtown on Maine St has been on the National Register of Historic Places since 1979. It is a real small town, with its own city hall, police department and fire district, and it serves a big rural area north of the Rathdrum Prairie.

Highway 41 is the commercial spine. It runs right through town as 5th Ave and carries about 11,000 vehicles a day at Maine St, connecting south to Rathdrum and Post Falls and north toward Blanchard. Highway 54 runs east to Athol and US-95.

The zoning is simple, with one Commercial zone and one Industrial zone, and the city reviews every commercial site plan at Planning and Zoning. Every new building has to connect to city water and sewer, so the first call on any site should be to City Hall about connections.

Market Data · Q3 2026

Spirit Lake by the numbers

CoStar does not report Spirit Lake as its own submarket, so these are the Kootenai County figures, Q3 2026.

Kootenai County

Industrial
Vacancy2.6%
Market asking rent$10.70/SF
Rent change, 12 mo-0.5%
Net absorption, 12 mo453K SF
Under construction24K SF
Retail
Vacancy1.2%
Market asking rent$18.50/SF
Rent change, 12 mo+0.5%
Net absorption, 12 mo113K SF
Under construction40K SF
Office
Vacancy4.1%
Market asking rent$25.00/SF
Rent change, 12 mo+2.3%
Net absorption, 12 mo31K SF
Under construction0 SF
Investment salesKootenai County
Industrial cap rate8.8%
Retail cap rate7.9%
Office cap rate9.7%
Sales volume, 12 mo$46.8M

What this means

Across Kootenai County, industrial vacancy fell to 2.6% from 6.3% a year ago, and retail sits at 1.2%. Very little of either is under construction. Office is 4.1% vacant with nothing being built. Sales were thin: 37 industrial, 40 retail and 22 office properties traded in the last twelve months.

Full county market report

Source: CoStar, Q3 2026 (from the CoStar pull of early November 2026). Market asking rents are CoStar estimates per SF per year.

Free Download · Q3 2026

Get the Kootenai County Market Report

The full PDF (4 pages): vacancy, rents, leasing, investment sales and cap rates by property type, plus my take on what it means. Tell me where to send it and it will be in your inbox in a minute or two.

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Zoning

Commercial and industrial zones

What you can build or open in each zone, in plain English. Tap a zone to see the details.

C

Commercial

Daily needs for the town and the area around it

Commercial areas that meet the daily needs of residents in and around the city. Every commercial site plan is reviewed by the Planning and Zoning Commission, and parking lots must be paved.

Max height35 ft
Lot coverage70%
SetbacksNone, except next to homes

Permitted outright

Retail storesRestaurants, bars and drive throughsOfficesBanksAuto sales and serviceSelf storageWarehouse and storageRV parkDaycareMedical and emergency servicesCommercial recreation

Conditional use permit

Residential uses
I

Industrial

Light industrial and contractor yards

Light industrial uses that are unobtrusive and not a problem for neighbors, with screening and noise limits at the lot line.

Max height60 ft
Lot coverage75%
Front setback25 ft

Permitted outright

Contractor and equipment yardsLumber and gravel yardsManufacturing and assemblyFabrication and repairWholesale and distributionWarehousingPublic utilities

Conditional use permit

Asphalt or cement plantBulk fuelChemical plantCommunications towerGrain elevatorScrap yard
Zoning map ↗Zoning code, Title 12 ↗Planning and Zoning ↗Building and permits ↗

Zones from Spirit Lake City Code Title 12. The city has three residential zones plus Commercial and Industrial, with no overlay districts. Industrial setbacks grow to 35 ft next to residential. Always confirm the zone on the specific parcel before you buy or sign a lease.

Building Here

From parcel to certificate of occupancy

  1. 1

    Check the parcel

    Confirm the zone and whether the site is inside city limits. Land outside the city follows Kootenai County rules.

  2. 2

    Confirm water and sewer

    City code requires every new building to connect to city water and sewer, so confirm connection availability with City Hall before you commit.

  3. 3

    Entitlements, if needed

    The Planning and Zoning Commission decides conditional use permits, with appeals to City Council within 7 days. Rezones are recommended by the Commission and adopted by Council. Both need a title company list of owners within 300 ft.

  4. 4

    Commercial site plan review

    Every commercial site plan goes to the Planning and Zoning Commission. Applications are filed through the city's iWorQ portal.

  5. 5

    Building permit

    Issued by the city under the 2018 International Building Code, generally with plans by an Idaho licensed architect. City impact fees were updated in December 2025, plus the Spirit Lake Fire fee of $0.98/SF.

  6. 6

    Certificate of Occupancy

    Issued by the city after final inspections.

Permits

Commercial building permits in Spirit Lake

Spirit Lake handles permits through an online portal but does not post a public list of issued permits. To see what has been permitted, call City Hall or file a public records request.

Building and permits

Applications, fees and the city's permit process.

Open the building page ↗

Online permit portal

Apply for a permit or check one you already have by permit number.

Open the portal ↗
Utilities and Services

Who serves the site

Water

City of Spirit Lake. New buildings must connect to city water.

208-623-2131

Sewer

City of Spirit Lake. New buildings must connect to city sewer, so confirm connection availability with City Hall early.

208-623-2131

Power

Kootenai Electric Cooperative and Avista both serve the area. Confirm the provider by address.

Fiber and internet

Intermax has built fiber along the Highway 54 corridor through Spirit Lake.

Fire

Spirit Lake Fire District, 32182 N 6th St.

208-623-5800

Police

Spirit Lake Police Department.

Incentives

Ways to lower the cost of the deal

Idaho state incentives

  • 3% investment tax credit on new equipment
  • Business personal property tax exempt up to $250,000 per county
  • No property tax on business inventory
  • Tax Reimbursement Incentive: up to 30% back on income, payroll and sales taxes for 15 years (20+ new jobs in rural areas)
  • Sales tax exemption on manufacturing equipment and raw materials
  • 5.3% corporate income tax rate
Corridors and Traffic

Where the cars are

Average vehicles per day, Idaho Transportation Department 2025 counts.

SH-41 (Gunning Rd to Rice Rd)
11,500
SH-41 (Vermont St to Maine St)
11,000
SH-41 (Rice Rd to Par 3 Golf Course Rd)
10,000
SH-41 (Maine St to Van Buren St)
9,800
SH-41 (SH-54 to Vermont St)
9,000
SH-41 (Seasons Rd to SH-54)
8,700
SH-41 (Van Buren St to Spirit Lake Rd)
8,500
SH-41 (north toward Blanchard)
6,100
SH-54 (Spirit Lake to Athol)
5,700
Maine St (east of SH-41)
1,200
Growth

Where Spirit Lake is headed

Population, 2010 to 2050

1,94520102,33720202,48520252,99020303,37420353,78120404,27520455,4942050

2010 to 2025: US Census. 2030 to 2050: KMPO projections, February 2026.

Finishing 2026

SH-54 reconstruction

ITD is rebuilding SH-54 from SH-41 in Spirit Lake to Athol with turn lanes, wider shoulders and lighting.

Adopted 2026

New comprehensive plan

City Council approved an updated comprehensive plan and future land use map in January 2026.

In effect

Updated impact fees

The city adopted new parks, traffic and law enforcement impact fees in December 2025, the first update since 2013.

Available Now

7Fold listings in Spirit Lake

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FAQ

Spirit Lake questions we get

What can I build in the Spirit Lake Commercial zone?
Retail, restaurants and bars including drive throughs, offices, banks, auto sales and service, self storage, warehousing, daycare and RV parks are all permitted. Height is capped at 35 ft and lot coverage at 70%.
Who approves a commercial project in Spirit Lake?
The Planning and Zoning Commission reviews every commercial site plan and decides conditional use permits. Rezones go on to City Council. Building permits come from the city, not the county.
Can I use a septic system or a private well in Spirit Lake?
Not inside city limits. City code requires new buildings to connect to city water and sewer, so confirm connections with City Hall before you buy.
Is Spirit Lake in an Opportunity Zone or urban renewal district?
No Opportunity Zone. The city's original urban renewal district is winding down, so there is no active tax increment financing right now.
How fast is Spirit Lake growing?
About 2,485 people in 2025. KMPO projects roughly 4,275 by 2045 and 5,494 by 2050.

Buying, leasing or building in Spirit Lake?

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Sources

Information is believed reliable but not guaranteed. Verify zoning, utilities and incentives for your specific parcel. Page updated October 2026.