Economy: Growth Remains Steady
Boise continued to post solid economic performance in Q3 2026, leading all tracked markets with population growth of 2.3% year-over-year (YOY). Median household income climbed 5.0% YOY to $96,600, supporting consumer spending and economic activity. Nonfarm employment expanded to 417,800 jobs, up 0.8% YOY, while healthcare employment grew to 61,100 jobs. The unemployment rate remained at 3.4%, below the U.S. rate of 4.2%. Looking ahead, continued growth in population, income, and employment is expected to support business expansion and commercial real estate demand throughout the Boise market.
Supply & Demand: Vacancy Holds Steady
Retail market fundamentals in Boise remained relatively stable during Q3 2026. Overall vacancy held at 4.0% YOY and declined 10 basis points (bps) quarter-over-quarter (QOQ), while available space increased to 3.4%. Direct vacant inventory decreased slightly to 1.02 million square feet (msf), and vacant sublease space fell by more than 50% QOQ to 13,613 square feet (sf). Despite the uptick in availability, vacancy remains below 5.0%, reflecting the market's continued occupancy strength.
Leasing activity moderated to 143,380 sf during the quarter, though occupancy trends improved. Net absorption totaled 29,925 sf and exceeded construction deliveries of 13,649 sf. As a result, vacancy remained near historic lows despite the addition of new retail space.
Pricing: Rents Reach New High
Average asking rents increased to a record $22.25 per square foot (psf) NNN in Q3 2026, up 4.0% QOQ and 9.4% YOY. Rent growth continued despite a modest increase in availability, reflecting sustained tenant demand for well-located space and limited vacancy across many established retail corridors.
While leasing volume slowed during the quarter, retail fundamentals remain healthy, with vacancy holding near historic lows and new supply remaining limited. Continued population growth, household formation, and consumer spending should support tenant demand, helping sustain occupancy and rental rate growth over the near term.
