Spokane’s Industrial Leasing Surge Offers Clues for Boise’s Warehouse Market

Industrial real estate doesn’t need flashy storefronts or downtown towers to make a major economic impact.

Spokane’s largest industrial leases from the second quarter of 2026 show businesses committing to serious amounts of warehouse and manufacturing space. The five recognized transactions total nearly 253,000 square feet, ranging from a 14,000-square-foot renewal to a massive 114,000-square-foot manufacturing commitment.

For anyone watching Boise commercial real estate, these deals are worth studying. Spokane and Boise serve different economies, but both are regional hubs in the Inland Northwest with growing populations, expanding distribution networks and strong demand from companies that need physical space to operate.

According to CoStar Research, five Spokane-area industrial leases were selected among the market’s second-quarter 2026 Power Broker Quarterly Deal Awards. You can see CoStar’s complete transaction details in the original CoStar News article.

The bigger lesson for Boise isn’t simply that large industrial leases are still happening.

It’s who is leasing the space, why they need it and what kinds of buildings are winning tenants.

Manufacturing, Distribution and Building-Related Businesses Need Real Space

The largest recognized transaction was a 114,000-square-foot renewal by Travis Pattern and Foundry at the Spokane Business and Industrial Park.

The company manufactures aluminum, bronze and iron castings.

That’s important because manufacturers generally can’t solve their real estate needs with remote work or a smaller office footprint. Production requires equipment, power, storage, loading areas and specialized facilities.

The next-largest transaction was also substantial.

NIC Holdings signed a new lease for 55,000 square feet at 1514 S. Flint Road in Spokane.

Cabinet Pro & Floors leased an entire 36,046-square-foot warehouse, while Harrington Industrial Plastics committed to 32,948 square feet at Barker Logistics Center.

JL Owens & Company rounded out the recognized deals with a 14,000-square-foot renewal.

Together, these leases represent approximately 252,994 square feet of industrial occupancy.

That’s meaningful demand.

More importantly, it comes from businesses that rely on physical facilities to make, store, distribute or handle products.

That same type of demand remains a major driver of Boise industrial real estate.

New Buildings Aren’t the Only Buildings Winning

One of the most interesting details in CoStar’s Spokane list is the age of the properties.

Harrington Industrial Plastics leased space in Barker Logistics Center, which was completed in 2022.

But other tenants chose much older facilities.

NIC Holdings took space in a building dating to 1990.

Cabinet Pro & Floors leased a warehouse originally constructed in 1956.

JL Owens renewed in the same 1990 property occupied by NIC Holdings.

That’s a useful reminder for Boise industrial landlords.

Industrial tenants don’t always need the newest building.

They need the right building.

Clear height, loading configuration, power, yard area, access, parking, location and rental rate can matter more than the year a property was constructed.

A well-located older warehouse can remain extremely competitive if its physical characteristics fit the tenant’s operation.

That creates opportunities across the Treasure Valley, where older industrial inventory exists alongside a growing supply of modern distribution buildings.

Owners shouldn’t automatically assume an older property is obsolete.

But they do need to understand exactly where it can compete.

What Spokane Tells Us About Boise Industrial Real Estate

Boise’s industrial market has changed dramatically over the past several years.

New distribution and warehouse projects have added significant inventory throughout Meridian, Nampa, Caldwell and other parts of the Treasure Valley.

As more space has been delivered, the market has shifted from the extremely tight conditions seen earlier in the decade.

That makes tenant demand even more important.

Spokane’s leasing activity suggests that companies needing 20,000, 30,000, 50,000 or even 100,000-plus square feet are still making long-term real estate decisions.

For Boise landlords, the challenge is positioning properties for the businesses actually expanding.

That may include:

• Manufacturers
• Construction suppliers
• Building-material companies
• Food and beverage distributors
• Plumbing and HVAC suppliers
• E-commerce and logistics companies
• Equipment distributors
• Automotive businesses
• Regional wholesalers
• Specialized industrial service companies

These aren’t necessarily household names.

But they are exactly the kinds of businesses that can quietly absorb tens of thousands of square feet.

Renewals May Be Just as Important as New Leases

Two of Spokane’s five recognized transactions were renewals.

That deserves attention.

Commercial real estate headlines tend to focus on new tenants because they’re more exciting.

But for landlords, keeping a good industrial tenant can be just as valuable as signing a new one.

Consider the 114,000-square-foot Travis Pattern and Foundry renewal.

Replacing a tenant occupying that much space could involve months of marketing, downtime, commissions, tenant improvements and potentially significant building modifications.

A successful renewal can avoid much of that disruption.

The same principle applies in Boise commercial real estate.

As industrial vacancy rises from unusually low levels, tenant retention becomes increasingly important.

Owners should be talking to major tenants well before lease expiration.

Not six weeks before.

Potentially a year or more before.

That gives both sides time to discuss rent, expansion needs, building improvements, lease term and operational issues before the tenant starts seriously evaluating alternatives.

Idaho Capital Is Already Looking Beyond Idaho

There’s another interesting connection in the Spokane transactions.

The 381,340-square-foot property at 1514 S. Flint Road—where NIC Holdings signed its 55,000-square-foot lease and JL Owens renewed 14,000 square feet—is owned by Idaho-based Lakeside Capital Group, according to CoStar.

That illustrates how Idaho investors are increasingly participating in commercial real estate throughout the broader Northwest.

Capital doesn’t stop at the state line.

Investors compare opportunities based on yield, tenant quality, replacement cost, rent growth and risk.

A Boise investor might compare an industrial property in Nampa against one in Spokane Valley, Salt Lake City or another western market.

That competition matters.

It means Boise investment property doesn’t exist in a vacuum.

If Idaho industrial pricing becomes too aggressive relative to achievable rents and financing costs, capital can move elsewhere.

Likewise, if Boise offers stronger growth prospects or a better basis, outside investors can move capital into Idaho.

Local Insight: Functional Industrial Space Has Staying Power

One takeaway from these Spokane leases is especially relevant to Boise.

Industrial real estate is ultimately about functionality.

A beautiful building that doesn’t work operationally can be difficult to lease.

An older building with the right loading, power, access and rent can remain valuable for decades.

If I were evaluating an industrial property in the Boise market, I would spend a lot of time thinking about what businesses can actually operate there.

Can a semi-truck maneuver comfortably?

How many dock-high and grade-level doors are available?

Is there enough electrical capacity?

Does the tenant need outdoor storage?

What’s the clear height?

How close is the property to Interstate 84 or another major transportation route?

Can employees get there easily?

And perhaps most importantly:

How many different types of businesses could use this building without major modifications?

The more flexible the property, the larger the potential tenant pool.

That flexibility can become extremely valuable when leasing conditions become more competitive.

Industrial Development Needs to Follow Tenant Demand

The Spokane transactions also provide a useful lesson for Boise development.

Industrial developers need to pay close attention to the size ranges businesses are actually leasing.

The recognized Spokane deals include requirements around 14,000, 33,000, 36,000, 55,000 and 114,000 square feet.

That’s a broad range.

It reinforces the importance of designing buildings capable of accommodating multiple tenant sizes.

A large industrial building that can be divided efficiently may have a broader leasing audience than one requiring a single massive user.

Smaller and mid-sized bays can also serve regional companies that are expanding but aren’t ready for a 100,000-square-foot distribution center.

That can be especially important in the Treasure Valley, where many growing businesses fall into the small- and middle-market category.

What Boise Landlords and Investors Should Watch

Spokane’s second-quarter activity doesn’t guarantee Boise will see identical leasing patterns.

But it does highlight several trends worth monitoring.

Industrial tenants continue to make significant commitments.

Manufacturing and distribution remain important sources of demand.

Older buildings can compete when they offer the right functionality.

Renewals matter as much as new leases.

And flexible buildings capable of serving multiple tenant types can have an advantage.

For Boise commercial real estate investors, the bigger question isn’t simply whether industrial remains a desirable asset class.

It’s whether the specific property can continue attracting businesses through different economic cycles.

Industrial buildings tied to strong locations, functional layouts and diverse tenant demand can have staying power.

And as Boise’s industrial market matures, those fundamentals may become much more important than simply owning a warehouse in a fast-growing city.

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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