Retail and office vacancies increase alongside prices in Bellingham

Bellingham's retail and office markets saw a substantial increase in vacancies, with nearly 90,000 square feet added between April and June. The overall vacancy rate rose from 3. 6% to 4. 5%, driven largely by the closures of Rite Aid and JoAnn Fabrics, which accounted for almost half of the increase. Average asking prices for retail leases increased by about one dollar per square foot, showing continued landlord optimism despite the rising vacancies.

Notably, downtown Bellingham and the Cordata neighborhood experienced the most significant changes in vacancy rates. The office market also hit a two-year high, with vacancies reaching around 5%, up nearly 1% from the previous quarter. In contrast, the industrial sector displayed stability, with average rents and vacancy rates remaining unchanged. Ryan Martin, co-owner of Pacific Continental Realty, emphasized that these trends reflect a well-balanced industrial sector. The overall dynamics in Bellingham's commercial real estate market highlight ongoing shifts that could influence future development and investment strategies.