Spokane has firmly established itself as the premier commercial hub of the Inland Northwest, drawing sustained in-migration from Seattle, the Bay Area, and other high-cost West Coast markets since 2020 and converting that population tailwind into broad-based CRE demand across every asset class. The metro's economic engine is diversified across healthcare anchored by Providence Sacred Heart and MultiCare Deaconess, aerospace manufacturing led by Triumph Composite Systems and Honeywell, and a four-university education cluster that provides both employment stability and consistent rental demand. The Spokane-Coeur d'Alene combined statistical area functions as a single economic zone, with Idaho crossborder activity deepening industrial absorption and multifamily occupancy on both sides of the state line. Cap rate spreads relative to Seattle and Portland continue to attract value-oriented institutional capital and private equity that priced out of primary Pacific Northwest markets.

Spokane Market Overview: Key Metrics

The Spokane commercial real estate market in 2026 reflects a market shaped by Healthcare and life sciences, aerospace and advanced manufacturing, higher education, distribution and logistics. Here are the key metrics investors and borrowers should know:

  • Multifamily Vacancy: 4.8% — well below the national average, signaling tight supply conditions
  • Industrial Vacancy: 5.2% — reflecting strong logistics and distribution demand
  • Office Vacancy: 16.4%
  • Retail Vacancy: 5.9%
  • Rent Growth: 3.8% year-over-year
  • Job Growth: 2.1% — outpacing the national average
  • Population Growth: 1.9% annually
  • Median Asking Rent: $1,485

Multifamily Outlook in Spokane

Spokane multifamily fundamentals remain among the strongest in the secondary Pacific Northwest, with metro-wide vacancy holding near 4.8% despite a meaningful construction wave that delivered over 1,200 new units in 2024 and 2025. Rent growth of 3.8% year-over-year reflects persistent demand from in-migrants, university-affiliated renters near Gonzaga and Whitworth, and healthcare workers tied to the South Hill medical corridor. The South Hill and Perry District submarkets continue to outperform on occupancy and rent premiums, while Spokane Valley and the North Side offer value-add opportunities in 1980s and 1990s vintage garden-style product. New supply deliveries are expected to moderate in 2026 given elevated construction costs and tighter construction loan terms, which should keep vacancy compressed and support continued rent growth.

Industrial & Logistics Market

Spokane's industrial market is benefiting from its position as the primary distribution gateway for Washington, Idaho, and Montana, with Interstate 90 and BNSF rail access making the West Plains and Spokane Valley corridors the most active industrial zones in the Inland Northwest. Vacancy sits at approximately 5.2%, with bulk distribution and light manufacturing leading net absorption as e-commerce operators and agricultural supply chain users expand footprints. The West Plains Airport District near Spokane International Airport is attracting aerospace-adjacent tenants and cold-storage users, while Spokane Valley's established industrial parks are seeing lease renewals at rents 15% to 20% above expiring terms. Speculative development remains limited relative to demand, and any new industrial product with functional clear heights and dock loading is leasing quickly.

Office & Retail Dynamics

Office vacancy in Spokane sits at 16.4%, reflecting the same hybrid-work headwinds that have stressed secondary market office nationally, though the downtown Spokane core is seeing a modest flight-to-quality trend as healthcare and professional services tenants consolidate into Class A space along Riverside Avenue and in the River Park Square district. Value-add office plays in converted suburban product carry significant leasing risk and are largely being priced as repositioning or redevelopment opportunities rather than stabilized acquisitions. Retail fundamentals are considerably healthier, with vacancy around 5.9% driven by strong consumer spending on South Hill along 57th Avenue and Regal Street, Spokane Valley near Sullivan Road, and the revitalized Kendall Yards mixed-use corridor along the north bank of the Spokane River. Grocery-anchored and service-oriented neighborhood centers are the most sought-after retail product among private investors seeking defensive cash flow in the current rate environment.

Financing Landscape in Spokane

For borrowers in the Spokane-Spokane Valley area, current commercial mortgage rates range from 5.25% for agency multifamily to higher rates for transitional and value-add projects. Key factors that influence your rate include property type, leverage, sponsor experience, and asset location within the metro.

Top Submarkets to Watch

The Spokane metro features several distinct submarkets that present unique investment opportunities:

  • Downtown Spokane
  • Kendall Yards
  • South Hill
  • Browne's Addition
  • Logan
  • Hillyard
  • North Spokane
  • Spokane Valley
  • Liberty Lake
  • Mead
  • Cheney
  • Airway Heights
  • Coeur d'Alene ID
  • Post Falls ID
  • Deer Park

Each of these submarkets has distinct characteristics in terms of tenant demand, development activity, and pricing. The top investment corridors in Spokane include Downtown Spokane, South Hill, Spokane Valley, West Plains/Airport District.

Investment Outlook: Spokane 2026

CLS CRE in Spokane

CLS CRE provides commercial mortgage brokerage services throughout the Spokane-Spokane Valley metropolitan area, with access to 1,000+ lenders including banks, life insurance companies, CMBS conduits, agency lenders, debt funds, and credit unions. Whether you're acquiring, refinancing, or developing commercial property in Spokane, our market expertise and lender relationships help you secure the most competitive terms available.

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