Missoula Market Update
AUGUST 2026
A submarket-by-submarket look at Office, Industrial, Retail, Multifamily, and Land in the Missoula market.
Executive Summary
● Retail — vacancy has normalized to 3.71%, up from the sub-2% lows of recent years but still well below the national average. With limited new supply, this reflects a strong marketplace for landlords who hold pricing power.
● Office — vacancy rate is 7.9% in the first half of 2026. Rents are averaging $19.87/SF.
● Industrial — functional vacancy runs 7.9%* — roughly in line with the national average.
● Multifamily — is more nuanced: recent construction lifted vacancy temporarily, but absorption stayed positive and rent growth held above the national average.
● Land — saw limited inventory and a slowing construction pipeline, both supportive of long-term values.
Outlook
Cautiously positive. Limited construction pipelines should protect occupancy and support gradual rent growth across retail, office, and industrial, while multifamily normalizes as recent deliveries lease up. The largest constraints are elevated financing and construction costs plus lengthy entitlement timelines — slowing speculative development and transaction velocity but also reducing the risk of oversupply. Net-net: measured growth, not explosive, concentrated in well-located, functional properties and infrastructure-ready sites.
ARE YOU READY TO WORK TOGETHER?