BELLINGHAM, WA (MyBellinghamNow.com) – Bellingham’s retail market stayed steady through the spring, while office space vacancies rose.

That’s according to a new report on second quarter commercial real estate by Pacific Continental Realty co-owner Ryan Martin.

Martin said downtown retail vacancies slightly dropped to just under 12%. Despite downtown and Sunset Square accounting for a disproportionate amount of available retail space, overall vacancy in Bellingham remained stable at 5.8%.

It came as the average asking rate for retail space rose to the highest level since Pacific Continental Realty began tracking the market.

“The combination of stable vacancy and increasing asking rents suggests landlords remain confident in the long-term outlook for retail despite ongoing economic uncertainty and selective softness in certain locations,” Martin said in a news release.

Meanwhile, the city’s office space market saw a modest bump in vacancies to 5%, including a notable increase downtown.

Martin said Bellingham’s industrial sector stayed strong with vacancies dropping slightly to below 1%, reflecting one of its lowest levels in recent years.