COEUR d'ALENE - Many local apartment owners have noticed a recent explosion in new apartment projects in Kootenai County.

Coldwell Banker commercial real estate agent Glenn Sather, known to some in his industry as "The Apartment Broker," said nearly 500 units were permitted in 2014 and more than 500 more are in the pipeline already for this year.

Sather was among the speakers Thursday at the eighth annual Coldwell Banker Commercial market review and forecast event at the Kroc Center.

The five-year average is 300 units, and historically the county is able to absorb 200.

"So we're about 50 percent above what we would call business as usual," Sather told the packed auditorium.

The Great Recession created a shortage of multi-family housing, and many in the past who would have owned homes are now renting instead, he said.

The county's overall apartment vacancy rate recently neared a 20-year low, dipping below 2 percent.

Looking ahead, he said he expects to see apartment vacancy rates rise, especially at older properties.

As for office space in 2014, rental rates increased in Coeur d'Alene, thanks to the strength of demand for Class A space, said Ben Widmyer, a sales associate at Coldwell Banker Commercial in Coeur d'Alene.

"However many Class B and C office (space) owners saw rental rates remain flat," Widmyer said.

Coeur d'Alene office space vacancy rates also increased, though only slightly, he said. Coeur d'Alene Mines Corp. moving to Chicago from downtown Coeur d'Alene in 2013 put more than 30,000 square feet on the market, space which has not been absorbed.

Post Falls saw its office vacancy rate climb from 7 percent last year to more than 10 percent this year. Hayden's decreased slightly to below 6 percent, Widmyer said.

The retail space market remained in recovery mode in 2014.

The sector saw little supply, only 18,000 square feet, added. That led to a decrease in the overall vacancy rate from more than 9 percent in 2013 to 8 percent in 2014.

Riverstone saw a lot of activity in 2014, and only a couple vacant suites remain.

"There have been a number of new retail additions, including salons, exercise facilities and coffee shops," Widmyer said.

Retailers that provide customers a service or experience not easily duplicated online will fill vacancies, he said.

"Health clubs and restaurants are seeing drastic growth," Widmyer said.

He projects 2015 as being a strong year for the retail market.

As for the office market, he is encouraged by employment numbers.

"With one or two more large companies relocating to the area, we should be in good position," he said.

Doug Rall of Coldwell Banker Commercial said industrial space vacancies in the county decreased.

Coeur d'Alene saw a slight increase each of the past three years, 4.6 percent in 2012 to 5.9 percent in 2013 and 6.6 percent last year.

Asking rents for industrial space were steady or slightly increased from 2013 to 2014, he said.

The average sale price rose from $39 per square foot in 2013 to $63 in 2014.

"We estimate that demand for industrial property will increase, will continue to increase, and supply will not be able to keep up this year," Rall said. "Rental rates will increase as leases are renewed during a period of short supply."

New construction will take place this year, and not just for owner-users, who have dominated the market, he said.

"But now with this low vacancy level, we should actually start to see some speculative industrial construction, which will of course put demand on land," Rall said.

Coeur d'Alene Mayor Steve Widmyer, who joined his son, Ben Widmyer, as a speaker at the forum, said East Sherman will be a target for development, and the city will assist with revitalization of this eastern corridor.

"There's a lot of potential along this section of Sherman Avenue," Widmyer said. "Planners are focused on developing a creative theme along the corridor."

City staff plan to kick-start master-planning efforts this spring and summer for the eastern portion of Sherman.

"Staff will engage businesses, property owners and adjacent neighborhoods in the visioning and planning efforts," Widmyer said.

The revitalization will hopefully coincide with "supportive business culture," he said.

An attractive corridor and more pride of ownership by the existing businesses will create an environment for economic development, he said.

Major renovation is already underway on a building at 12th Street and Sherman, he said. McAllister Technical Services, of Coeur d'Alene, plans to occupy the renovated space.

The business is hoping others join it, energizing the business climate on East Sherman, the mayor said.

Widmyer said he is optimistic about the future of East Sherman. He noted the Vertical Earth bike shop relocated there.

"We are all excited about the potential of East Sherman," Widmyer said.