BELLINGHAM, WA (MyBellinghamNow.com) – Demand for office space in Bellingham ticked up towards the end of 2024, while retail spaces saw a less encouraging trend.

That’s according to a new report on fourth quarter commercial real estate by Pacific Continental Realty co-owner Ryan Martin. He says vacancy rates for downtown office space fell significantly from the previous quarter.

That followed a city-wide trend of increased demand for office space following an extended period of decline.

Some of the city’s most well-known office buildings such as the Bellingham Herald and the Bellingham National Bank brought in new tenants to contribute to the encouraging growth.

Meanwhile, retail space in Bellingham saw less demand with increased vacancies and lower asking prices. Downtown Bellingham retail vacancies rose to nearly 10%, largely brought on by the relocation of the Lighthouse Mission Base Camp.

Moving forward, Martin says concerns about tariffs could push Canadian firms to relocate or expand into Whatcom County, which would put a squeeze on the already-tight market for industrial space.