Downtown Spokane’s office vacancy rate has increased to about 30% due to postpandemic business trends, aging buildings, rising rent costs, and safety concerns, says Emilie Cameron, president and CEO of Downtown Spokane Partnership.

However, ongoing efforts and investments by the city of Spokane, building owners, and other stakeholders are helping to address challenges facing the area, she contends.

The 30% vacancy rate downtown is double the 15% target rate most cities aim for, Cameron explains. 

Office vacancies in the Central Business District rose to 31% in fall 2025, up from 28% in 2024, according to information from Spokane-based Kiemle Hagood's 2026 Market Review & Outlook report. CBD vacancies have steadily increased the last several years with a vacancy rate of 19.7% in 2023, up from 18.8% in 2022, according to the company's 2025 market report. 

“When office vacancy is that high, it means the city is missing out on millions of dollars of tax revenue spending — not just from the idea of employers who are active in spaces and purchasing things, but from employees who are then eating out for their lunches and swinging by the store on their way home,” says Cameron.

Currently, 17% of jobs in Spokane operate in the Central Business District, which is located between Fourth Avenue and the Spokane River, and between Maple Street and Division Street. The average downtown Spokane employee goes to the office 2 1/2 days a week, with Tuesdays and Wednesdays as the most popular days, Cameron says.

After the COVID-19 pandemic, some employers shed their expensive leased spaces, she explains. 

For example, Travelers, a New York-based insurance company, vacated 75,000 square feet of office space at the Crescent Building, at 719 W. Main, in 2024 and moved to a smaller location in Spokane Valley, says real estate broker Craig Soehren, of Kiemle Hagood.

Kiemle Hagood represents several office buildings and about 700,000 square feet of office space, he says, which translates to roughly 20% of downtown Spokane’s 3.5 million square feet of office space.

Larger, more open floor plans, as featured in the Crescent Building, are better suited for use as a large call center and are becoming obsolete, Soehren says, adding that many companies are more interested in renting smaller, condensed spaces downtown.

For owners of mostly vacant buildings who want to renovate their properties spaces to meet current business needs, they might find it harder to obtain loans to do so, as banks make lending decisions based on occupancy, Soehren says. As a result, older buildings could sit vacant for years without proper investments, he adds.

Additionally, downtown office rents are on the rise. At newer Class A office spaces, such as the revamped Old City Hall building at 221 N. Wall, rents currently are around $27 per square foot. For comparison, Class A spaces rented for around $24 a square foot in 2024, Soehren says.

Most office space downtown is located within Class B properties, including buildings such as the Paulsen Center, at 421 W. Riverside, he explains. Tenants rent Class B properties for an average of $20 per square foot.

Compounding the vacancies are negative perceptions regarding safety in downtown Spokane, which has increased as concerns of homelessness, mental illness, and substance use ramped up during and shortly after the pandemic, Cameron says.

“The perception of downtown is much worse than it is,” Cameron contends. “However, there are real challenges in downtown Spokane, much like every downtown and urban environment across the country.”

The unanimous passage of Spokane's Safe and Accessible Spaces ordinance in late 2025, for instance, has been addressing unlawful camping and obstruction on public property. The ordinance is helping some homeless individuals receive treatment and services, boosting downtown’s image, and driving new tenants to the area, Soehren asserts. 

Several previous investments of downtown Spokane office spaces are keeping the area viable for new and existing business tenants, Soehren says.

Spokane-based Washington Trust Bank has recently invested in downtown Spokane office space with a new branch and lobby improvement project that began last year at its Tower East Building, at 601 W. First. 

Spokane-based paperboard manufacturer Clearwater Paper Corp. also has completed a $4 million renovation at the company’s headquarters in the Bank of America Financial Center, at 601 W. Riverside, he says. The building, which is owned by British Columbia-based real estate company Redstone Spokane I LLC, has initiated at least seven commercial building remodel projects since 2021, the Journal previously reported.

Other older downtown office investments include previous work at the Old City Hall building and the Paulsen Center, Soehren adds.

“Their commitment to downtown Spokane is what's keeping it viable, quite honestly,” Soehren says of the companies investing in office renovations. “The (retail scene on West Main Avenue) is still doing really well from everything that I have heard, and Main Street is very vibrant — the entertainment, the park, all of that are huge benefits to our downtown.”

Despite rising rent and safety concerns, downtown Spokane is one of the only areas in the city of Spokane where larger companies can rent more than 10,000 square feet of office space, Soehren says. Potential tenants will find nearby amenities including Riverfront Park, a comprehensive public transit system, and a a variety of retail and dining options.

“Clients that come here (are) just amazed at what we've done here in a city of our size, and they just think it's beautiful,” he says. “Like so many things in life, when you live it every day and you just do your thing, you don't look at the global picture and say, ‘It's pretty good here.’”