Coeur d’Alene Industrial Market Report — Q2 2026
As of the close of Q2 2026, the Coeur d’Alene industrial market had a vacancy rate of 6.9%, in line with the national industrial rate, with market asking rents of $10.67/SF (up 0.3% year over year). The market cap rate was 8.6% — well above the 7.3% national average — at an estimated $114/SF versus roughly $160/SF nationally. Industrial sales volume totaled $13.1 million across 41 transactions over the trailing 12 months, below the five-year average as buyers and sellers worked through a cap-rate reset. National capital now holds approximately 81% of the market’s industrial asset value, even though local buyers accounted for about 72% of buyer volume. With under 48,000 SF under construction against a 260,000 SF ten-year average, thin new supply supports a stable-to-improving 2026 outlook.
Coeur d’Alene Industrial Key Statistics — Q2 2026
| Metric | Q2 2026 | Detail |
|---|---|---|
| Industrial vacancy rate | 6.9% | In line with the national industrial rate |
| Average asking rent | $10.67/sf | +0.3% year over year |
| Market cap rate | 8.6% | 130 bps above 7.3% U.S.; basis ~$114/sf |
| Trailing 12-mo sales volume | $13.1M | 41 properties; 1.3M sf; avg deal ~$2.6M |
| Pricing | ~$155/sf | ~6.4% discount to asking |
| Outlook | Vacancy ~6.9% | Peaked; absorption positive, pipeline thin |
Coeur d’Alene Industrial Market Overview — Q2 2026
The Coeur d’Alene industrial market spans roughly 11.0 million square feet of inventory — about 6.0 million SF logistics, 2.0 million SF flex, and 2.9 million SF specialized. Vacancy of 6.9% is elevated against the metro’s own tight history (a 4.0% five-year average) but reads healthy alongside the national industrial rate. The most important number for anyone worried about oversupply is the pipeline: under 48,000 SF is under construction against a ten-year average near 260,000 SF. In an industry digesting its largest-ever construction cycle, Coeur d’Alene’s restraint is an advantage — it never took on the speculative risk that pushed vacancy up in larger markets.
Key stats — Coeur d’Alene Industrial | Q2 2026
- Vacancy rate: 6.9% (5-yr avg 4.0% · national industrial in line)
- Market asking rent: $10.67/SF (+0.3% YoY · U.S. +1.2%)
- Market cap rate: 8.6% (U.S. avg 7.3%)
- 12-month sales volume: $13.1M across 41 transactions
- Net absorption (12 mo): +57,286 SF · Under construction: 47,600 SF
Coeur d’Alene Industrial Vacancy, Rents & Absorption — Q2 2026
Net absorption turned positive at +57,286 SF over the trailing twelve months — a meaningful swing after the market gave back space in the prior stretch — while deliveries stayed modest at about 45,250 SF. Demand is quietly working through existing inventory rather than chasing new product. Rents tell the more sobering half: market asking rent is $10.67/SF, up just 0.3% year over year versus 1.2% nationally. For a metro adding roughly 3,500 residents a year, flat rent is not a demand problem — it is a short-term supply-digestion story concentrated in one submarket, laid over a long-term growth engine that remains fully intact. Owners should read flat asking rents as the market clearing its last available space before pricing power returns, not as weakness.
Industrial Property Sales in Coeur d’Alene — Recent Transactions
Forty-one industrial properties traded over the trailing year for $13.1 million, accounting for 1.3 million SF of turnover. The average deal was about $2.6 million at $155/SF, and properties sold at roughly a 6.4% discount to asking on average — a sign buyers are setting terms. The quarter’s headline trade was 750 W Canfield Ave in Hayden: a 36,000 SF building that sold for $6.8 million ($188/SF) as a 1031 exchange. Below it, a string of small deals — 3700 E Covington Ave in Post Falls ($2.6M, $80/SF), 11574 N Carisa Ct ($1.5M, $272/SF), and 9151 N Hess St ($965K, $237/SF) — most of them owner-users and 1031 buyers rotating capital within the region. The average building that traded was about 32,500 SF, confirming this as a small-building market — precisely the segment the national data says is strongest, as small-bay and infill space holds tight while large-format big-box carries the vacancy.
With Coeur d’Alene industrial cap rates at 8.6% — well above the national average — yield-focused buyers are active. Want to know what your industrial property is worth in today’s market?
Coeur d’Alene industrial submarkets — Q2 2026
The market-wide numbers hide a wide spread. Post Falls — the largest submarket at 41.5% of inventory — carries the highest vacancy at 11.8%, the legacy of the logistics product that concentrated there, but it also led the market in absorption. Strip Post Falls out and the rest of Coeur d’Alene runs materially tighter than the headline suggests: Kootenai at 0.6% and Greater Coeur d’Alene at 1.4% are effectively full. The headline vacancy is a Post Falls story laid over a very tight core.
Industrial Cap Rates & Investment Activity — Inland Northwest
Coeur d’Alene’s market cap rate is 8.6%, a full 130 basis points above the 7.3% national industrial average, at a basis of roughly $114/SF versus about $160/SF nationally — the classic tertiary-market profile of higher yield, lower basis, and thinner liquidity. The ownership picture is the story that gives this report its name: local buyers did most of this year’s deals by count (about 72% of buyer volume), but national capital now holds approximately 81% of the market’s industrial asset value, with local owners at just 16%. National institutions own the large, stabilized assets; locals trade the small-bay product. Why is volume stuck despite the yield? Financing. With the Federal Reserve holding at 3.50%–3.75% and leaning toward a hike, the 10-year Treasury near 4.5%, and commercial loans at 6.5%–7.5% at 60%–65% LTV, buyers need cap rates at or above 8% to make deals pencil — while many sellers remain anchored to 2021–2022 pricing. The 2026 loan-maturity wave is the likely catalyst to clear that standoff.
Inland Northwest Industrial Market Forecast — 2026
Vacancy has effectively peaked. With the construction pipeline this thin and absorption back in positive territory, the CoStar model holds vacancy near 6.9% through 2026 before grinding toward the low-6% range by the end of the decade. Rent growth is forecast essentially flat for 2026, then recovering toward the mid-single digits by 2028 as the last available space fills, while pricing is projected to climb from about $114/SF today toward $134/SF by 2030 even as cap rates hold near 8.6% near-term. Against the region, Coeur d’Alene looks well-positioned: Spokane next door runs tighter on paper (about 5.8% vacancy) but shares the same frozen-transaction problem, while Boise — the state’s larger market — is working off a genuine oversupply at roughly 9.1% vacancy after heavy speculative building. Coeur d’Alene sits between them, with disciplined supply, healthy occupancy, and a yield premium.
What Q2 2026 Means If You Own Coeur d’Alene Industrial Property
If you own Coeur d’Alene industrial property, you own a higher-yield, functional asset in a thin, resilient market. At an 8.6% market cap rate — a full 130 basis points above the 7.3% national average — every $10,000 of net operating income is worth roughly $116,000 in value. With vacancy at 6.9%, rents at $10.67/sf, and a construction pipeline too thin to threaten occupancy, well-located space holds its value even as deals price at a modest discount to asking.
- Thinking about selling? Start with a broker opinion of value to see where your building prices today, then our seller representation team runs the process.
- Holding for income? Higher yields make this a good moment to review property management and lease structure.
- Have space to fill? See how our leasing team positions Coeur d’Alene industrial space.
- Compare your asset class: office, retail, and multifamily.
Coeur d’Alene Industrial Market — Frequently Asked Questions
What is the Coeur d’Alene industrial vacancy rate in Q2 2026?
The Coeur d’Alene industrial vacancy rate was 6.9% as of the close of Q2 2026, in line with the national industrial rate and above the metro’s 4.0% five-year average. The elevated reading is concentrated in the Post Falls submarket (11.8%); the rest of the market, including Kootenai (0.6%) and Greater Coeur d’Alene (1.4%), is effectively full.
Are Coeur d’Alene industrial rents rising or falling?
Market asking rents were $10.67/SF in Q2 2026, up 0.3% year over year — slower than the 1.2% national pace. Growth is expected to stay near flat through 2026 before recovering toward the mid-single digits by 2028 as the market absorbs its remaining available space.
What are cap rates for industrial property in Coeur d’Alene?
The Coeur d’Alene industrial market cap rate was 8.6% in Q2 2026, roughly 130 basis points above the 7.3% national average, with pricing near $114/SF versus about $160/SF nationally. That yield premium is a primary reason national capital continues to acquire the region’s larger assets.
How much industrial real estate sold in Coeur d’Alene over the past year?
Industrial sales volume totaled $13.1 million across 41 transactions over the trailing 12 months — below the five-year average on a normalized basis — as a cap-rate standoff between buyers and sellers slowed activity. The largest trade was a 36,000 SF Hayden building at $6.8 million ($188/SF).
Who is buying industrial property in Coeur d’Alene?
Local buyers accounted for about 72% of buyer volume by deal count in the trailing year, but national capital now holds roughly 81% of the market’s industrial asset value. National institutions tend to own the larger, stabilized buildings, while local owner-users and private investors trade the small-bay product that makes up most of the inventory.
What is the 2026 forecast for the Coeur d’Alene industrial market?
Vacancy appears to have peaked and is forecast to hold near 6.9% through 2026 before declining toward the low-6% range by 2030. With almost no new construction underway, pricing is projected to rise from about $114/SF toward $134/SF by 2030, positioning owners for renewed pricing power as the market’s remaining space is absorbed.
Coeur d’Alene Industrial Real Estate Broker — Eric Peterson, ACTIV8 Real Estate, LLC
Eric Peterson is the Designated Broker and President of ACTIV8 Real Estate, LLC, based in Liberty Lake, Washington, serving the Inland Northwest and North Idaho commercial real estate markets. ACTIV8 provides brokerage, market analysis, and broker opinions of value across the industrial, office, retail, and multifamily sectors in Coeur d’Alene, Post Falls, Hayden, and Spokane. Contact Eric at 509-255-3476 or [email protected], or visit www.ACTIV8RE.com.
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Whether you own, lease, or invest in industrial property in Coeur d’Alene, Post Falls, or Hayden, Eric Peterson can provide a submarket-level analysis and a broker opinion of value.
Eric Peterson | 509-255-3476 | [email protected] | ACTIV8RE.com
