Boise Office Market Holds Firm as Vacancy Tightens and Leasing Activity Accelerates
Q2 2026 Boise MSA Office Market Update
The Boise MSA office market continues to demonstrate remarkable resilience.
Despite ongoing economic uncertainty nationally, the Treasure Valley’s office sector entered 2026 with healthy leasing activity, tightening vacancy, and record-high asking lease rates. While tenants remain thoughtful about long-term space decisions, demand continues to outpace new supply across much of the market.
According to TOK Commercial’s Q2 2026 Office Market Report, overall vacancy remains below seven percent for the third consecutive quarter, while multitenant vacancy has fallen to its lowest level since 2022. Positive net absorption more than doubled compared to the same period last year, underscoring continued confidence among businesses expanding or relocating within the Boise Valley.
Market Snapshot
Through the first quarter of 2026, the Boise MSA office market recorded:
- 58,000 square feet of positive net absorption
- 9.5% multitenant vacancy
- $22.15 per square foot average full-service asking lease rate (FLSV)
These indicators point toward a market that continues to favor well-positioned office properties while remaining attractive for businesses seeking quality space.
Vacancy Continues to Improve
Perhaps the strongest signal coming out of the quarter is the continued tightening of available office inventory.
Overall vacancy declined to 6.5%, remaining below seven percent since late 2025. Even more notable, multitenant vacancy fell to 9.5%, the lowest level the market has experienced in nearly four years.
North Meridian Leads Market Performance
North Meridian once again emerged as one of the Boise area’s strongest-performing office submarkets.
The submarket accounted for approximately 36,000 square feet of positive absorption, representing the majority of the market’s quarterly growth. It also posted an exceptionally tight 2.1 months of available supply, significantly below the regional average of 13.8 months.
For owners, this reflects continued demand for newer suburban office product with modern amenities and convenient access.
Office Rents Reach Another Record
Rental rates continued their upward trajectory during the quarter.
Average asking lease rates climbed to $22.15 per square foot (FLSV)—the highest level ever recorded in the Boise MSA. Class A office space maintained average asking rents around $25.50 per square foot, approximately six percent higher than one year ago.
Eagle remains the market’s premium office location, averaging approximately $30 per square foot.
While higher rental rates can create challenges for tenants, they also reflect the market’s ongoing demand for quality office environments.
A Note of Caution: Sublease Availability Is Rising
Although market fundamentals remain strong, one trend deserves close attention.
Available sublease inventory increased 22% year over year, reaching approximately 444,000 square feet by the end of the quarter. Much of that inventory is concentrated within North Meridian.
This increase does not necessarily indicate weakening demand. Instead, it reflects companies reassessing long-term workplace strategies, controlling occupancy costs, and placing excess space back into the market as hybrid work patterns continue to evolve.
For tenants, this creates additional opportunities to secure high-quality office space that may not otherwise become available.
Businesses Continue to Choose Boise
Leasing activity remained encouraging throughout the quarter.
Transaction volume increased compared to the same period last year, with notable growth among both startups and companies entering the Boise market for the first time. Nearly two-thirds of new-to-market tenants selected Boise-area submarkets, reinforcing the region’s continued appeal for business expansion.
Downtown Boise generated the largest share of leasing transactions, while North Meridian continued to attract businesses seeking suburban office locations with convenient regional access.
Construction Pipeline Remains Disciplined
Unlike many rapidly growing markets, Boise has avoided significant overbuilding.
Only 14,000 square feet of new office product was delivered during the first quarter. While several projects—including the anticipated completion of 4th & Idaho later this year—will add inventory, development activity remains measured relative to tenant demand.
This balanced approach has helped preserve healthy occupancy levels while limiting the supply shocks seen in other metropolitan office markets.
Outlook for the Remainder of 2026
The Boise office market continues to distinguish itself through steady fundamentals rather than dramatic swings.
Vacancy remains low, rental rates continue to climb, and tenant demand is supporting positive absorption across much of the region. While increasing sublease inventory suggests some businesses are becoming more cautious, overall leasing activity indicates organizations continue investing in physical office space throughout the Treasure Valley.
As additional office projects are delivered later this year, the market appears well-positioned to absorb new inventory while maintaining healthy long-term fundamentals.
Download the Complete Q2 2026 Boise Office Market Report
TOK Commercial’s quarterly market reports provide detailed market statistics, absorption trends, vacancy analysis, leasing activity, and submarket performance across the Boise MSA.
Request a copy of the full Q2 2026 Boise Office Market Report to access comprehensive data, transaction highlights, and detailed market insights.