BELLINGHAM, WA (MyBellinghamNow.com) – Demand for office space saw modest gains in Bellingham, while retail faltered towards the end of 2025.
That’s according to new report on fourth quarter commercial real estate sales by Pacific Continental Realty co-owner Ryan Martin.
He says the vacancy rate for Bellingham’s office market fell a full percentage point from the previous quarter.
Most of the demand came from submarkets like Barkley Village, Cordata and Sehome Village, while downtown saw a slight increase in vacancy.
Despite vacancies falling, the average asking rent for office space also saw a slight drop.
Bellingham’s industrial market remained stable throughout 2025, with just a slight fourth-quarter decline in vacancy rates.
Meanwhile, Martin says retail vacancies increased, mainly at Sunset Square, while Bellis Fair Mall was the only spot to buck the trend.
It came as Bellingham ended 2025 with both the highest average asking rate and the highest vacancy rate for retail reported over the past five years, according to Martin.
He expects activity to pick up for both buyers and sellers in the beginning of 2026 as interest rates continue to trend downward.
