BELLINGHAM, WA. – We are seeing a mixed outlook on commercial retail property in Bellingham, according to the findings of a new report.
Ryan Martin with Pacific Continental Realty says the downtown vacancy rate nearly doubled in the third quarter of the year, driven by the closure of a prominent pharmacy chain.
“Certainly, with Rite Aid, a pretty significant tenant, they’re nearly 14,000 square feet,” said Martin. “With that going out, that was a pretty big chunk. That was close to a third of vacancies for downtown that came up this quarter.”
Meanwhile, Bellis Fair Mall saw a significant rise in occupancy after a few down years during the pandemic.
This season’s addition of Spirit Halloween boosted their numbers along with some changes from new ownership.
“They seem to be taking more of a hands-on approach and trying to come up with more creative tenants,” said Martin. “So, they’ve got more education-based businesses and less traditional retail. And that seems to be a theme that we’re seeing.”
The vacancy rate for office space in Bellingham fell for the first time in six quarters.
Industrial space remains a scarce commodity within the city.