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.
