BOISE MSA | Q1 2026
INDUSTRIAL CONDITIONS
The industrial sector recorded 1.1 million square feet of net absorption, marking the eighth consecutive year surpassing one million square feet. While this total marks the lowest annual absorption recorded since 2017, it still reflects a fundamentally active and resilient market. In addition, transaction volume remained healthy and largely in line with 2024 levels, with more than 300 industrial deals completed in 2025. Leasing demand continued to be driven primarily by organic growth. Approximately 60 percent of transactions involved tenants opening additional locations, expanding existing operations, or securing space for new business ventures. As for the largest transactions of 2025, new construction dominated with the top five deals all occurring in newly delivered space. Notable deals include DHL’s 340,800-square-foot lease at Nampa Interchange Park and Amalgamated Sugar’s 260,000-square-foot occupancy at 16810 Northside Boulevard.
Industrial vacancy edged up modestly to 8.5 percent in 2025 but has remained below 9 percent since mid-2024. A key factor influencing the overall vacancy rate is the 901,000-square-foot single-tenant building at Red River Logistics Center, which delivered in June 2024 and remains on the market. This large block of available space continues to skew vacancy higher, even as leasing activity elsewhere shows signs of stabilization. Multitenant vacancy, while still elevated at 22 percent, declined from year-end 2024 levels as newly delivered space gradually absorbed.
NET ABSORPTION has surpassed 1 MILLION SF for the 8th consecutive year but is DOWN 0% from 2024.
CALDWELL recorded the HIGHEST LEVEL of net absorption, with 422,000 SF.
Asking rents continued to trend upward, with overall industrial asking rates reaching $1.10 per square foot NNN and Class A space averaging $1.15 per square foot, both record highs. However, the leasing environment remains a tale of two markets when comparing smaller and larger space requirements. Based on completed leases in 2025, spaces under 15,000 square feet averaged approximately $1.08 per square foot, reflecting ongoing supply constraints for smaller users. In contrast, leases for spaces above 15,000 square feet averaged closer to $0.85 per square foot, softer pricing for larger-format space despite elevated overall asking rents.
OVERALL VACANCY is at 8.5% and has stayed BELOW 9% since July 2024.
MULTITENANT vacancy ended at 22.4% which is DOWN 100 BASIS POINTS from the end of 2024.
NET ABSORPTION has surpassed 1 MILLION SF for the 8th consecutive year but is DOWN 0% from 2024.
CALDWELL recorded the HIGHEST LEVEL of net absorption, with 422,000 SF.
NEARLY 1.5 MILLION SF was absorbed by TENANTS EXPANDING OR OPENING ADDITIONAL LOCATIONS in 2025.
23% of NEW-TO-MARKET deals were for spaces OVER 20,000 SF.
INDUSTRIAL OUTLOOK
New industrial construction totaled approximately 1.4 million square feet in 2025, marking the lowest annual delivery since 2021. This slowdown signals a more supply-side balance as recently delivered projects worked through lease-up and developers responded to moderating absorption levels.
Looking ahead, industrial construction in 2026 is expected to exceed 2025 levels as several large-scale developments move forward. Notable speculative projects currently underway include 406,300 square feet at High West Business Park near the
Boise airport and 231,400 square feet at Ten Mile West in Meridian. In addition, Tractor Supply is anticipated to complete their 860,000-square-foot distribution center in Nampa.
One of the most closely watched developments in the Treasure Valley, Micron continues to make steady progress on its two semiconductor fabrication facilities. The first is scheduled to begin operations in 2027, with a second facility expected to follow in 2028. As the initial site approaches completion, semiconductor suppliers and related users are showing increased urgency to secure industrial space in the valley—momentum that is expected to support sustained industrial demand in the coming years.