OFFICE CONDITIONS
While still adapting to evolving workplace strategies, the Boise Office market showed measurable improvement in 2025. Net absorption finished the year at 383,000 square feet, up 50 percent from 2024 and marking the strongest annual performance since 2021. Although Downtown net absorption remained negative overall, it improved by 32 percent year over year, a positive sign for the urban core.
Leasing activity remained steady, with total transactions rising slightly year over year. Nearly half of all deals occurred in submarkets outside of Boise, reflecting a continued migration toward suburban locations as tenants seek accessibility, parking, and cost efficiencies. Demand remained concentrated in smaller spaces, underscoring businesses’ focus on flexibility and right-sizing. Seventy-one percent of all transactions involved suites under 3,000 square feet, while only 14 percent were for spaces larger than 5,000 square feet. This sustained preference highlights cautious expansion strategies and long-term space optimization.
Vacancy trends further illustrate a market regaining balance. Overall vacancy declined 20 basis points to 6.6 percent year over year, staying within 6.8 and 7.3 percent for most of 2025 before falling at year-end. Multitenant vacancy also improved, decreasing 30 basis points to 9.8 percent. Sublease availability tightened considerably, down 25 percent year over year and remaining below 500,000 square feet throughout 2025, ending the year at 428,000 square feet.
OFFICE OUTLOOK
Looking ahead, the Boise Office market is positioned for continued stability, supported by disciplined construction, improving absorption, and sustained rent growth. The average overall asking lease rate reached a record high of $22.00 per square foot (FLSV, annual). The average Class A asking rate climbed to a record $25.50 per square foot, with premier properties commanding significantly higher rents. In Eagle and Meridian, top-tier projects are asking as much as $45 to $55 per square foot. Limited new construction and persistently high material and labor costs have supported rent growth, particularly for new Class A product, and will likely continue to keep upward pressure on rates while compressing vacancy through 2026. Organic growth remains the primary engine of leasing demand. Expansions and additional locations accounted for 39 percent of all transactions in 2025.
Construction activity, while picking up modestly, remains measured. A total of 154,000 square feet delivered in 2025, up from the record low in 2024, including 53,000 square feet of speculative space. Deliveries are projected to accelerate in 2026 with the anticipated completion of the 161,000-square-foot 4th & Idaho project, along with roughly 250,000 square feet currently under construction. With strengthening fundamentals, limited supply expansion, and steady local business growth, the local office market is positioned for balanced, sustainable performance in the year ahead.
To learn more about current office leasing or sales opportunities, please connect with our Office Brokerage Specialists!