Retail vacancies in Bellingham increase as costs to operate rise

Bellingham's retail vacancy rate climbed to 5. 3% in the third quarter of 2025, an increase of 0. 8%. This rise is attributed to notable store closures in Sunset Square, including JoAnn Fabrics and Rite Aid, and losses at Bellis Fair, where Forever 21 shut down. Despite the increased vacancies, the average asking price for retail leases rose by 76 cents, reaching $20.

48 per square foot, indicating ongoing demand for retail space. The industrial sector, in contrast, demonstrated stability, with vacancies decreasing from 2. 2% to 2. 1%. Ryan Martin, co-owner of Pacific Continental Realty, noted that the closures have significantly impacted the local retail landscape.

The mixed results highlight a divergence between retail and industrial performance in the city. As Bellingham navigates these challenges, the local economy's resilience will be tested. The fluctuations in retail and industrial sectors reflect broader trends in consumer behavior and economic conditions.