BELLINGHAM, Wash. – The sale of Bellis Fair Mall did not slow down demand for retail space in Bellingham.

According to a report from Pacific Continental Realty’s Ryan Martin, retail vacancy rates in the area fell 0.5% to 2.8% in the 4th quarter of 2022, down for a second consecutive quarter.

Martin says while retail vacancies at Bellis Fair dropped around 1%, over a third of the city’s available retail space is still located at the mall.

And he says the market for industrial space is even tighter.

Industrial vacancies also dropped 0.5% in the fourth quarter, from 1.7 to 1.2%.

As a result of the reduced vacancies, the average asking rate for property in both areas also increased.