Arts Tenants Revive Vacant Historic Building — A Leasing Strategy Boise Office Landlords Should Watch
Downtown office markets across the country are still adjusting to major shifts in how people work.
Many cities are seeing higher vacancy levels in older buildings as companies shrink footprints or rethink office needs. But some landlords are finding creative ways to fill empty space — and bring energy back to struggling districts.
A recent lease in Seattle offers a good example.
According to reporting by CoStar News journalist Randyl Drummer (see the original article here: https://product.costar.com/home/news/879450204), a historic building in Seattle’s Pioneer Square recently secured a major tenant when an arts nonprofit signed a lease that helped revive a partially vacant property.
Although the story comes from the Seattle market, the lesson could be highly relevant for Boise commercial real estate, where older office buildings and historic structures may face similar challenges in the years ahead.
A Creative Tenant Solves a Vacancy Problem
The lease centers around a nonprofit arts organization called Actualize Artists in Residence, which provides studio space for working artists.
The group had previously operated out of a retail space in the historic Coliseum Theater building but needed to relocate when its lease ended.
Brokers with Orion Commercial Partners stepped in to help find a solution.
After several attempts to place the organization elsewhere, they eventually secured space inside the Prefontaine Building, a historic brick property in Pioneer Square that had lost multiple tenants during the pandemic years.
Key details from the deal include:
- 14,632 square feet leased
- three floors of space inside the building
- a property originally constructed in 1909
- studio space supporting more than 30 artists
Before the lease, the building had significant empty space and portions of it had even been boarded up.
Once the arts organization moved in, the building’s vacancy rate dropped dramatically — falling to roughly 7 percent.
A Different Type of Office Tenant
Traditional office tenants — law firms, tech companies, and corporate users — are no longer the only occupants landlords are considering.
In some cities, building owners are turning to nontraditional tenants that still benefit from large, flexible spaces.
These can include:
- arts organizations
- education programs
- nonprofits
- coworking concepts
- incubators and creative studios
In the Seattle case, the arts collective gained affordable studio space while the building owner gained occupancy and new activity in the property.
Industry observers noted that the lease also helped restore life to the surrounding neighborhood, which has long been associated with arts and culture.
Because of its broader impact, the deal received a CoStar Impact Award for the Seattle–Puget Sound region.
Why Creative Leasing Is Becoming More Common
Across the United States, many older downtown buildings are dealing with higher vacancy levels than they experienced before the pandemic.
When office demand slows, landlords often need to think differently about who their tenants might be.
Creative leasing strategies can include:
- flexible lease terms
- subdividing large office floors
- offering lower-cost studio or workspace environments
- partnering with nonprofit or community organizations
In some cases, these tenants may not pay the highest rents — but they can bring something equally valuable: consistent occupancy and neighborhood activity.
Active buildings often attract additional tenants over time.
What This Means for Boise Commercial Real Estate
Although Boise’s office market has remained relatively healthy compared with some larger cities, similar dynamics could eventually appear here as well.
Boise has several historic properties and older office buildings where adaptive tenant strategies could play a role in long-term leasing success.
Creative users that could fit these spaces include:
- artist studios
- startup incubators
- design firms
- nonprofits and educational programs
- flexible coworking communities
Downtown Boise already has a strong creative culture connected to arts, design, and small business development.
That ecosystem could provide opportunities for landlords looking to reposition space that may not fit the needs of traditional corporate tenants.
Local Market Impact: Activity Can Be as Valuable as Rent
For building owners, one of the biggest risks with vacancy is inactivity.
Empty floors reduce foot traffic, weaken neighborhood energy, and can make buildings feel disconnected from their surroundings.
The Seattle project demonstrates how filling space with a mission-driven tenant can bring life back to an underutilized building.
In many markets, that activity can lead to additional leasing momentum.
For downtown districts trying to stay vibrant, creative tenants can sometimes serve as anchors that help rebuild daily activity.
My Take: Flexibility Will Define the Next Phase of Office Leasing
From a Boise commercial real estate perspective, the key lesson here is adaptability.
Office markets are evolving, and the buildings that succeed long term will likely be the ones that can accommodate a wider range of users.
Traditional office tenants will always play a role.
But as cities evolve, landlords who welcome creative, cultural, or nonprofit tenants may find new ways to stabilize buildings and strengthen neighborhoods.
Sometimes the tenant that saves a building isn’t the one landlords originally expected.
Mike Gioioso (joy-OH-so) has for 16+ years been helping companies of all sizes buy, build, and lease perfect places for business in greater Boise, Idaho and beyond.
www.streetsmartidaho.com
mike@streetsmartidaho.com
208-209-9166
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