Coeur d’Alene Retail Market Report — Q2 2026
As of the close of Q2 2026, the Coeur d’Alene retail market had a vacancy rate of approximately 1.0% — near a historic low and roughly a quarter of the ~4.4% national rate. Market asking rents rose 1.3% year over year to $18.48 per square foot, while trailing-12-month sales volume fell about 56% to $14.0 million across 40 transactions. The estimated market cap rate was 7.8%, although credit-tenant, net-leased assets traded far tighter, averaging 5.4%. The drop in sales volume reflects a shortage of available product — a liquidity story — rather than weakening demand, with vacancy at record lows and only about 15,600 square feet under construction.
Coeur d’Alene Retail Key Statistics — Q2 2026
| Metric | Q2 2026 | Detail |
|---|---|---|
| Retail vacancy rate | ~1.0% | Near a historic low; about a quarter of the 4.4% U.S. rate |
| Average asking rent | $18.48/sf | +1.3% year over year |
| Market cap rate | 7.8% | Above 7.3% U.S.; pricing ~$186/sf vs ~$247 national |
| Trailing 12-mo sales volume | $14.0M | 40 transactions; constrained by a shortage of listings |
| Outlook | Vacancy ~1.0% | Low-single-digit rent growth; thin volume |
Coeur d’Alene retail market overview — Q2 2026
The Coeur d’Alene retail market closed the second quarter of 2026 with the strongest fundamentals it has posted in a decade — and its thinnest trading. Vacancy stood at roughly 1.0%, down about 22 basis points year over year and roughly 62 basis points from the first quarter. That sits well inside the market’s tightest historical band; the five-year average vacancy is 1.4% and the ten-year average is 1.9%, and the current reading is effectively the market’s trough. Across roughly 11.6 million square feet of retail inventory, only about 180,000 square feet is available — an availability rate near 1.5%.
The contrast with the national picture is stark. U.S. retail vacancy has crept up toward 4.3%–4.4% and is still rising, while Coeur d’Alene sits at roughly a quarter of that and falling. The structural scarcity of new retail space is a national theme, but in Coeur d’Alene it is acute: there is very little space, and very little being built.
Coeur d’Alene retail vacancy, rents & absorption — Q2 2026
Rent growth has normalized from the 3%-plus annual pace this market averaged over the past five and ten years, running just under the national retail figure of about 1.7%. With the market this full, occupancy — not aggressive rent-chasing — is doing the work. CoStar’s forecast has Coeur d’Alene retail rents finishing 2026 up around 1.1% and vacancy holding near 1.0%.
Retail property sales in Coeur d’Alene — recent transactions
Trailing-12-month retail sales volume totaled about $14.0 million across 40 transactions — down roughly 56% from about $32 million a year earlier and well below the five-year average near $25 million. The decline reflects a shortage of listed product rather than softening demand: with vacancy at 1.0% and rents rising, owners of well-located property have little reason to sell. Essentially all volume came from private buyers, and roughly 97% was locally sourced.
One transaction defined the year. The 2025-built, single-tenant net-leased building at 114 E Appleway Avenue in Greater Coeur d’Alene sold in December for $9.1 million — about $1,908 per square foot at a 5.4% cap rate — accounting for roughly two-thirds of the entire year’s retail volume by itself. Other notable trades included 315 N 4th Street in the CBD ($1.16M, $297/SF, a 1031 and redevelopment play), 1631 E Seltice Way in Post Falls ($1.15M, 6.3% cap), and 1201 E Sherman Avenue ($950K, 4.8% cap).
With Coeur d’Alene retail vacancy near 1.0% and quality space rarely available, well-located centers are in high demand. Want to know what your retail property is worth in today’s market?
Retail cap rates & investment activity — North Idaho
CoStar estimates the Coeur d’Alene retail market cap rate at 7.8%, above the 7.3% national average, with market pricing near $186 per square foot versus $247 nationally. On paper, that suggests a discount — but the deals that actually traded priced far tighter, between 4.8% and 6.3%, averaging 5.4%. The market-wide figure is dragged upward by an older, owner-user, and secondary building stock; the credit-tenant, net-leased assets that institutional and 1031 buyers pursue are pricing much closer to that 5.4% average. Coeur d’Alene retail is a two-tier market, and understanding which tier a property belongs to is essential to pricing it correctly.
Submarket breakdown
Greater Coeur d’Alene is the market’s engine, carrying about $10 million of the $14 million in volume with the highest asking rents near $20 per square foot. The CBD was the most active submarket by deal count (10 transactions) but carries the highest vacancy at 1.7% and the lowest rents around $17.34, reflecting its older, small-format building stock. Post Falls logged the most transactions (13) at the market’s lowest rents near $16.28 — the affordability play. Kootenai is the tightest submarket in the region at 0.4% vacancy, with Hayden/Dalton Gardens close behind at 0.8%.
Coeur d’Alene retail market forecast — 2026
Expect the pattern to hold into the back half of 2026: vacancy near 1.0%, rent growth in the low single digits, and thin transaction volume until either more product comes to market or the cost of capital eases. Demand drivers remain firmly in place — the Coeur d’Alene metro population is up more than 11% since 2020, healthcare investment continues to scale through the 30-acre Prairie Medical Campus in Post Falls, and resort and downtown development add further momentum. The watch items are housing affordability, which steers household spending toward value and service retail, and a financing backdrop in which the Federal Reserve has signaled it may hold rates higher for longer. In a market this tight, the cost of debt — not demand — is the real governor on activity.
What Q2 2026 Means If You Own Coeur d’Alene Retail Property
If you own Coeur d’Alene retail property, you own into one of the tightest retail markets in the country. At a 7.8% market cap rate, every $10,000 of net operating income is worth roughly $128,000 in value. With vacancy near 1.0% — about a quarter of the national rate — and rents at $18.48/sf, quality space almost never comes available; the constraint on sales is a shortage of listings, not of buyers.
- Thinking about selling? Start with a broker opinion of value to see where your center prices today, then our seller representation team runs the process.
- Holding for income? Historically tight occupancy is a good moment to review property management and lease structure.
- Have space to fill? See how our leasing team positions Coeur d’Alene retail space.
- Compare your asset class: office, industrial, and multifamily.
Coeur d’Alene Retail Market — Frequently Asked Questions
What is the retail vacancy rate in Coeur d’Alene?
As of Q2 2026, the Coeur d’Alene retail vacancy rate was approximately 1.0% — near a historic low and well below the national retail vacancy rate of about 4.3%–4.4%.
What are retail rents in Coeur d’Alene?
Market asking rents averaged $18.48 per square foot in Q2 2026, up 1.3% year over year. By submarket, rents ranged from about $16.28/SF in Post Falls to about $19.99/SF in Greater Coeur d’Alene.
Why did Coeur d’Alene retail sales volume drop in 2026?
Trailing-12-month sales volume fell about 56% to $14.0 million, but this reflects a shortage of available product rather than weak demand. With vacancy near record lows and rents rising, owners have little reason to sell — making it a liquidity story, not a demand story.
What is the cap rate for retail property in Coeur d’Alene?
The estimated market cap rate was 7.8% in Q2 2026, above the 7.3% national average. However, credit-tenant, net-leased assets that actually traded priced tighter — between 4.8% and 6.3%, averaging 5.4% — making it a two-tier market.
What was the largest retail sale in Coeur d’Alene in Q2 2026?
The largest sale was 114 E Appleway Avenue, a 2025-built, single-tenant net-leased building that sold for $9.1 million ($1,908 per square foot, 5.4% cap rate) — roughly two-thirds of the year’s total retail volume.
Is now a good time to buy or sell retail property in Coeur d’Alene?
With values supported by genuine scarcity rather than speculation, Coeur d’Alene retail is best described as a hold-and-be-ready market. Owners weighing a sale should obtain a current broker’s opinion of value given the two-tier pricing dynamic. Contact ACTIV8 Real Estate for a property-specific assessment.
Coeur d’Alene retail 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 retail owners, investors, and tenants across Coeur d’Alene, Post Falls, Hayden, and the greater North Idaho and Inland Northwest markets.
Own or lease retail in North Idaho? Let’s talk.
Get a current broker’s opinion of value on your Coeur d’Alene or North Idaho retail property, or a read on a specific submarket.
Eric Peterson | 509-255-3476 | [email protected] | ACTIV8RE.com
Sources
Data source: CoStar, Q2 2026. Prepared by ACTIV8 Real Estate, LLC, Liberty Lake, WA. Figures rounded for readability and provided for informational purposes only.
