Bellingham’s demand for retail space declines as vacancy rate increases over 3% since 2023
A local real estate report found that the demand for leasing commercial retail spaces declined in the first quarter of 2024 in Bellingham.
The report, prepared by Ryan A. Martin, co-owner and broker at Pacific Continental Realty in Bellingham, found that Bellingham’s retail vacancy rate rose from 0.2% to 3.3% in the first quarter, as the average asking rate for retail space fell from $19.78 per square foot to $18.97.
Despite the decreases across the city, downtown Bellingham and Bellis Fair mall had hopeful increases.
“Bellis Fair showed a slight increase in vacancy, rising from 6.4% to 6.7%, but overall is moving in the right direction. Retail space in downtown Bellingham also had a slight increase in the first quarter to a vacancy rate of 6.5%,” Martin wrote in an email to The Bellingham Herald.
As for office space, vacancy rates declined for the fourth quarter in a row to 4.5%.
“The decrease in vacancy did come at a cost as the average asking rate for office space dropped for the fifth consecutive quarter to $17.98 per square foot, the first time it has been below $18 since the pandemic,” Martin said.
“Bellingham’s industrial sector saw its vacancy rate rise 0.3% in the first quarter but that still leaves it at a microscopic 1.5%. The average asking rate for industrial space wasn’t affected much dipping only 3 cents to $1.08 per square foot,” Martin said.
