Boise Industrial Figures Q2 2026

The Boise industrial market remained in a supply-driven phase in Q2 2026, though development activity continued to moderate. Space under construction declined to 1.3 million sq. ft., down from 1.4 million sq. ft. in the prior quarter, while quarterly deliveries fell to 406,000 sq. ft. The slowdown in new construction should help the market gradually work through the supply overhang created by several years of elevated development activity.

Tenant demand remained positive but was insufficient to offset recent deliveries. As a result, vacancy increased 10 basis points (bps) quarter-over-quarter to 9.9%, reaching its highest level of the current market cycle. Net absorption totaled 312,000 sq. ft. during the quarter, improving from Q1 levels by 287%.

Recent performance reflects longer-term market trends. Over the past five years, the Boise industrial market has absorbed 7.2 million sq. ft. of space, but construction activity has outpaced demand, contributing to a 680-bps increase in vacancy over the same period. Despite softer occupancy fundamentals, pricing has remained resilient. Average asking rents held at $0.91 per sq. ft. in Q2 and were 5.8% higher than one year ago. Over the past five years, asking rents have increased 21.3% despite the higher level of available space.