Kootenai County Market ReportCommercial real estate, Q3 2026
Vacancy, asking rents, leasing and sales for industrial, retail, office and multifamily across Coeur d’Alene, Post Falls, Hayden and the rest of the county. Updated every quarter.
The market by property type
Countywide numbers for the last twelve months. Vacancy change is in percentage points from a year ago.
| Type | Inventory | Vacancy | Change, 12 mo | Market asking rent | Rent change | Net absorption | Delivered | Under construction |
|---|---|---|---|---|---|---|---|---|
| Industrial | 11.0M SF | 2.6% | -3.7% | $10.70/SF | -0.5% | 453K SF | 54K SF | 24K SF |
| Retail | 11.7M SF | 1.2% | -0.6% | $18.50/SF | +0.5% | 113K SF | 41K SF | 40K SF |
| Office | 6.3M SF | 4.1% | -0.4% | $25.00/SF | +2.3% | 31K SF | 8K SF | 0 SF |
| Multifamily | 10,000 units | 8.4% | -0.8% | $1,620/mo | +1.4% | 277 units | 216 units | 157 units |
Source: CoStar, Q3 2026 (from the CoStar pull of early November 2026). Market asking rents are CoStar estimates per SF per year. Multifamily rent is average asking rent per unit per month.
My read on the quarter
Industrial
Industrial is the story of the year. Vacancy dropped from 6.3% to 2.6% as tenants absorbed 453,000 SF and only 54,000 SF of new space delivered. Post Falls did most of that leasing. Just 24,000 SF is under construction countywide. Rents have not moved yet, down 0.5% to $10.70/SF, but with this little new supply that gap usually closes. If you are a tenant, start early. If you have thought about building spec, the numbers are finally worth a look.
Retail
Retail is full. County vacancy is 1.2%, and Hayden and Dalton Gardens is under 1%. About 40,000 SF is under construction, most of it in Post Falls. Rents are up only 0.5%, which tells me landlords are filling space rather than pushing rate. Good second generation space does not sit long.
Office
Office is steady at 4.1% with nothing under construction. Greater Coeur d'Alene is tight at 2.3%, while Hayden and Dalton Gardens sits at 7.2% and downtown gave back 19,000 SF. Rents are up 2.3% to about $25/SF. Tenants have options in Hayden and downtown. Outside downtown Coeur d'Alene, they do not.
Multifamily
Apartments are working through the last wave of supply. Vacancy is 8.4%, down 0.8 points and well under the five-year average of 11.3%. Renters absorbed 277 units against 216 delivered, and only 157 units are under construction. Average asking rent is $1,620 a month, up 1.4%.
Sales
Investment sales were thin but steady. Industrial traded $12.9M over 37 sales, above its five-year average of $9.5M. Office did $19.4M, well above its $12.7M average. Retail was the slow one at $14.5M against a $25.1M average, likely because so little is for sale. CoStar's market cap rates run 7.9% to 9.7% for commercial, but the trades that actually closed averaged closer to 5% to 7%. Small local deals and owner users price differently than the model.
Vacancy and rent by submarket
CoStar splits the county into submarkets. Hayden and Dalton Gardens are reported together. Rathdrum, Spirit Lake and the north county are in the county total only.
| Submarket | Industrial | Retail | Office |
|---|---|---|---|
| Greater Coeur d'Alene | 0.4%$10.30/SF | Not reported | 2.3%$26.00/SF |
| Downtown Coeur d'Alene | 8.4%$11.40/SF | 1.7%$17.10/SF | 3.4%$25.00/SF |
| Post Falls | 3.8%$10.60/SF | 1.2%$15.80/SF | 4.1%$23.00/SF |
| Hayden and Dalton Gardens | 2.2%$10.90/SF | 0.8%$19.20/SF | 7.2%$25.00/SF |
| Kootenai County | 2.6%$10.70/SF | 1.2%$18.50/SF | 4.1%$25.00/SF |
Each cell shows vacancy, then market asking rent per SF per year. Greater Coeur d’Alene retail was not in this quarter’s pull. Source: CoStar, Q3 2026 (from the CoStar pull of early November 2026). Market asking rents are CoStar estimates per SF per year.
Investment sales, last twelve months
| Type | Sales volume | Sales | Market cap rate | Market price | National price |
|---|---|---|---|---|---|
| Industrial | $12.9M | 37 | 8.8% | $116/SF | $160/SF |
| Retail | $14.5M | 40 | 7.9% | $186/SF | $248/SF |
| Office | $19.4M | 22 | 9.7% | $148/SF | $281/SF |
| Multifamily | See note | See note | 6.2% | $160,000/unit | $230,000/unit |
Market cap rate and market price are CoStar model estimates for the whole market, not averages of closed deals. Multifamily sales volume is left out because CoStar’s twelve month figures do not reconcile this quarter. Source: CoStar, Q3 2026 (from the CoStar pull of early November 2026). Market asking rents are CoStar estimates per SF per year.
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How Kootenai pricing compares
Nationally, sales volume is up 18.3% over the last twelve months and prices for smaller properties sit near a record high. Industrial and land led the gains, and apartments fell. Here, office and multifamily held value better than the rest of the country, and every property type still trades well below national pricing.
| Type | Kootenai price change, 12 mo | U.S. price change | West price change | Kootenai price vs U.S. |
|---|---|---|---|---|
| Industrial | +0.8% | +5.4% | +1.2% | 28% below |
| Retail | +2.1% | +3.5% | +1.1% | 25% below |
| Office | +10.4% | -1.5% | +3.8% | 47% below |
| Multifamily | +2.3% | -4.6% | -5.3% | 30% below |
Source: CoStar. National and West figures are CoStar Commercial Repeat-Sale Indices, data through September 2026 (equal-weighted, which tracks smaller trades like ours). Kootenai figures are CoStar market estimates.
Kootenai County by the numbers
Population, income and growth for every market I work in. Each town has a full guide with zoning, utilities and traffic.
| Market | Population, 2025 | Growth since 2020 | Median household income | Projected, 2045 |
|---|---|---|---|---|
| Coeur d'Alene | 58,179 | +6.5% | $72,338 | 81,933 |
| Post Falls | 46,715 | +21% | $82,183 | 86,683 |
| Hayden | 17,363 | +11.5% | $82,958 | 24,936 |
| Rathdrum | 13,227 | +43.6% | $86,563 | 33,249 |
| Spirit Lake | 2,485 | +6.3% | $65,192 | 4,275 |
| Hauser | 915 | +20.2% | $74,792 | 1,078 |
| Athol | 738 | +4.1% | $70,250 | 1,243 |
| Kootenai County | 191,864 | +12.0% | $81,861 | 303,424 |
Population: US Census Vintage 2025. Income: Census ACS 2020 to 2024. Projections: KMPO, February 2026.
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