— By Don Zebe of Colliers Idaho —
more mature and geographically diverse stage of growth. While the Treasure Valley remains the state’s primary development engine, retail expansion is increasingly occurring in markets such as Twin Falls, Idaho Falls, Ammon, Rexburg, Pocatello-Chubbuck, Coeur d’Alene and Post Falls.
Idaho’s population surpassed 2 million residents in 2025, providing a strong foundation for grocery, restaurant, medical, service and neighborhood-oriented retail uses. However, population growth alone no longer guarantees project success. Elevated construction and financing costs have made retailers and developers increasingly selective, placing greater emphasis on access, visibility, traffic patterns and regional drawing power.
Treasure Valley Remains the Development Leader
The Treasure Valley continues to receive the greatest volume of retail construction and leasing activity in Idaho. Major projects like the District at Ten Mile in Meridian reflect the growing preference for mixed-use destinations that combine retail, dining, fitness and services. The continued expansion of the Village at Meridian further demonstrates the market’s ability to attract both first-to-market and expanding national retailers.
Despite ongoing development activity, the Boise-area retail market remains relatively tight, with retail vacancy at 4.4 percent in the second quarter of 2026, supporting continued demand for well-located space.
Magic Valley Growth Strengthens Twin Falls’ Regional Role
Twin Falls continues to strengthen its position as south-central Idaho’s primary shopping and service center, drawing consumers from a regional trade area that extends well beyond the city itself. Recent additions to the restaurant sector and hotel development, along with continued investment in food processing, manufacturing and logistics, reinforce the market’s role as a regional commercial hub.
Transportation improvements and employment growth throughout the Magic Valley are expected to support additional retail demand across the region.
Eastern Idaho Emerges as a Growth Corridor
Eastern Idaho has become an increasingly important part of the state’s retail development story. Idaho Falls and Ammon remain the region’s largest retail hubs, supported by healthcare, tourism, manufacturing, Idaho National Laboratory and continued residential growth. National retailers, restaurants and service providers continue to expand throughout the market.
Rexburg has emerged as one of Idaho’s most notable retail growth markets. Population growth, Brigham Young University-Idaho and the market’s broad regional trade area are helping attract major retailers and expand Rexburg’s retail offerings.
Farther south, Pocatello and Chubbuck are also experiencing significant reinvestment, highlighted by the construction of a new Target store, which is expected to strengthen regional shopping activity and support additional commercial growth.
North Idaho Remains Constrained by Limited Supply
Coeur d’Alene and Post Falls continue to benefit from population growth, migration and tourism, but limited availability of developable sites and modern retail space remains a challenge. Those supply constraints continue to create opportunities for infill development, redevelopment and the repositioning of aging retail properties.
The Next Stage of Idaho Retail
Idaho remains attractive to grocery, restaurant, fitness, medical and service-oriented retailers, particularly in growth corridors and grocery-anchored centers. The state’s strongest opportunities increasingly lie in markets with substantial regional draw power rather than in population growth alone.
Going forward, successful retail development will be driven by disciplined site selection, infrastructure capacity and a deep understanding of local trade area dynamics. As Idaho’s retail landscape evolves, growth is becoming increasingly distributed across distinct regional markets, each with its own opportunities and development patterns.
— By Don Zebe, Partner, Colliers Idaho. This article was originally published in the August 2026 issue of Western Real Estate Business.