Coeur d’Alene & Kootenai County Retail Market Report – Q1 2025 Vacancy, Rents, and Outlook
The Coeur d’Alene retail real estate market continues to show strength and stability in 2025, posting one of the lowest vacancy rates in the region and above-average rent growth. With no new construction underway and strong net absorption, retail landlords are enjoying a highly favorable environment—particularly in well-located neighborhood centers and high-traffic corridors.
Data sourced from CoStar, Crexi, broker-reported activity, and publicly available information as of April 2025.
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Market Snapshot – Q1 2025
- Vacancy Rate: 1.3%
- 12-Month Net Absorption: 3,100 SF
- Deliveries: 0 SF
- Market Asking Rent: $18.27/SF (up 2.3% YoY)
- Inventory: 11.8 million SF
- Under Construction: 0 SF
Vacancy and Leasing Activity
Vacancy held at just 1.3%, significantly outperforming the market’s 5-year (1.5%) and 10-year (2.3%) averages. Strip centers reported the lowest vacancy at 0.2%, with malls and power centers both fully occupied. Notable new leases included Boiada Brazilian Grill at the Village at Riverstone and a series of specialty users expanding across Post Falls and Hayden.
With such tight availability and no new retail space being delivered, the competition for space is intensifying—especially for retailers seeking 1,000–3,000 SF footprints in visible locations.
Rent Growth and Asking Rates
Retail asking rents in Coeur d’Alene rose by 2.3% year-over-year, outperforming the national average of 1.8%. This marks a sustained trend of local rent strength, with a 10-year average growth rate of 3.3% and a 5-year rate of 4.0%.
- Power Centers: $33.52/SF | +2.9%
- Strip Centers: $19.35/SF | +2.2%
- Neighborhood Centers: $19.18/SF | +2.6%
- General Retail: $17.91/SF | +2.2%
- Malls: $19.94/SF | +2.9%
The current rent environment favors landlords, particularly those offering well-maintained, visible, and efficiently laid-out spaces.
No Retail Construction Underway
For the first time in over a decade, Coeur d’Alene has no retail space under construction. This pause comes after a decade averaging 30,000 SF annually in new deliveries. With the current vacancy rate near record lows and population growth continuing, the market is increasingly undersupplied—especially for modern, small-format retail locations.
This dynamic presents opportunity for landlords with repositioned assets and for developers eyeing infill or redevelopment opportunities.
Retail Sales and Investment Trends
Retail investment activity cooled in the past year, with just $7.7 million in total sales volume across 46 transactions and 400,000 SF of retail changing hands.
- Average Sale Price: $365/SF
- Cap Rate: 7.2% (compared to 7.1% nationally)
- Most Active Submarkets: Hayden, Post Falls, and Central Coeur d’Alene
Notable sales include the 1,920 SF property at 702 N Spokane St, which sold for $1,265/SF, and the 9,200 SF building at 600 W Kathleen Ave, trading at $222/SF.
Smaller, fully-leased buildings continue to attract buyers looking for yield, while value-add and redevelopment plays remain limited due to the lack of vacancy.
Submarket Performance Highlights
| Submarket | Vacancy | Asking Rent |
|---|---|---|
| Hayden/Dalton Gardens | 0.9% | $19.05/SF |
| Coeur d’Alene CBD | 0.5% | $17.17/SF |
| Post Falls | 1.3% | $15.63/SF |
| Kootenai | 1.0% | $17.56/SF |
| Greater Coeur d’Alene | 2.1% | $19.96/SF |
The strongest rent growth occurred in Greater Coeur d’Alene and Hayden, driven by tight inventory and desirable demographics. Meanwhile, vacancy in all submarkets remains near historic lows, supporting further rent appreciation in 2025 and beyond.
Demographics and Economic Tailwinds
The Coeur d’Alene metro area is home to over 190,000 residents, with annual population growth of 1.9%. Idaho saw more than 30,000 new residents in 2024, with 14,500 arriving from California alone.
Median household income in Kootenai County is now $81,090, outpacing the national average. With a strong employment base in healthcare, government, and hospitality—and an influx of professional remote workers—local spending power is rising, benefiting neighborhood retail.
Outlook for 2025
With no new construction, historically low vacancy, and steady demand, the Coeur d’Alene retail real estate market remains landlord-friendly. Rents are expected to continue rising modestly, and new development may return in 2026 as lenders and developers regain confidence.
Looking for Retail Space in Coeur d’Alene or Kootenai County?
If you’re a business owner looking for retail space in Coeur d’Alene, Post Falls, Hayden, or nearby markets, now is the time to act. With vacancy near all-time lows and limited new construction, quality spaces are leasing quickly—especially in high-traffic corridors and neighborhood centers.
Whether you need a 1,200 SF storefront, a new location for your franchise, or help negotiating favorable lease terms, we’ll help you find the right space and guide you through every step of the process.
👉 Learn more about our retail tenant representation services
Want to Know What Your Retail Property is Worth?
We help retail property owners in Coeur d’Alene, Post Falls, and Hayden understand their asset’s market value, leasing potential, and investment strategy.
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Need Help Leasing or Selling Your Retail Property?
At ACTIV8 Real Estate, we specialize in helping retail property owners lease vacant space, position assets for sale, and attract national and regional tenants. Whether you’re a landlord with a single-tenant vacancy or an investor exploring disposition, we bring market expertise, hands-on execution, and a network of active buyers and tenants throughout North Idaho.
A recent example: We represented the seller of the Riverstone Retail Plaza in Coeur d’Alene—a multi-tenant retail asset with national tenants including Starbucks and Regal Theaters. Our marketing strategy included drone fly-throughs, targeted investor outreach, and lease-level analysis.
If you’re looking to maximize value or fill space, let’s talk.
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📩 Contact Eric Peterson at [email protected] or call (509) 903.9077
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