Bellingham’s commercial real estate market sees ‘significant vacancy increases’
Bellingham’s commercial real estate market had “significant vacancy increases” in the second quarter of the year, according to a local real estate report.
Bellingham’s vacancy rate “rose from 3.6% in the first quarter to 4.5% in the second quarter,” according to the report by Ryan Martin, co-owner and broker at Pacific Continental Realty, LLC. “Bellingham’s retail rate was as low as 3.1% in last year’s second quarter. The Bellingham office market also saw a significant increase in vacancies. The office vacancy rate rose to 5.2%, its highest in two years and well above the first quarter’s 4.3% rate.”
The most extreme changes were seen in downtown and the Cordata neighborhoods, according to Martin, as the office vacancy rate in downtown increased from 6.6% to 8.6%. Cordata’s office vacancy rate increased from 0.5% to 2.1%.
“Total retail vacancy increased by nearly 90,000 square feet in the second quarter ending June 30, largely due to the bankruptcies and closures of Rite Aid (16,000 square feet) and Joann Fabric (28,000 square feet),” Martin said.
Although vacancy rates dramatically changed, prices remained steady.
“The average asking price for leasing some of Bellingham’s 10.1 million square feet of retail space rose from $18.74 per square foot to $19.72, indicating continued landlord optimism despite the rising vacancies,” Martin said.
This story was originally published July 22, 2025 at 5:00 AM.
