Bellingham Commercial Real Estate
BELLINGHAM R/E COMMERCIAL INVESTMENT
BY: HARDY & ASSOCIATE R/E COMPANY
QUARTERLY REPORT - April 2007
The Bellingham market remains stable as job growth continues to meet population growth, thus keeping the unemployment rate only slightly below the national rate. Bellingham commercial real estate should continue to do well as long as construction does not over power demand.
Retail Recent Bellingham retail transactions indicate properties are selling at an average price of $197 per sq. ft., higher than Seattle's average of $192. One reason is the volume of new space sold verses existing space. The . national average is $169 per sq. ft. The capitalization rate for retail properties in CC1M the Bellingham area is 6.41%, less than the Seattle area at 6.4%and the national average PARTNERS of 6.9%.
Industrial The fundamentals for the Bellingham area industrial market have remained relatively constant during the first quarter of 2007. The availability rate has increased slightly and the average rental rate has remained steady. The average selling price for industrial space in the Bellingham area is $97 sq. ft., lower than the Seattle area of$112 per sq. ft. but higher than the national average of $83 per sq. ft. Capitalization rate for the Bellingham area is 6.7%, lower than the Seattle area industrial sector of 6.8% and lower than the national average of 7.4%.
Apartment The average price based on current sales of Bellingham apartment properties is $107,739 per unit, very much in line with the national average of $107,833 per unit. The Bellingham apartment sector has an average capitalization rate of 5.9%, higher than the Seattle average of 5.5% but lower than the national average of 6.3%.
Office The Bellingham office market showed signs of weakening during the first Quarter of 2007. The vacancy rate is going up and net absorption has leveled off as the new construction continues. Average asking rents, however, have remained the same. Recent sales indicate that office space is selling at an average price of $194 per sq. ft., lower than the $211 per sq. ft. for Seattle but higher than the national average of $167 per sq. ft. The average capitalization rate based on current sales for Bellingham is 6.5%, less than the Seattle average of 6.6% and the national average of 7.2 %.
Demographics and Economy Population: 2006(est.):73,460 2001 (proj.): 94,692 Unemployment Rate: Bellingham - 4.2% Seattle - 4.7% National- 4.4% |