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The market for commercial real estate in Bellingham WA is strong and manufacturing buildings are one of the leading sectors in growth. During the recession recover years of 2010 through 2012, rental rates for manufacturing buildings were as low as $0.28 per square foot. In today’s market, current lease rates for industrial buildings are in the $0.55 to $0.65 range in Bellingham and even higher in Snohomish County.
It’s also important to note that the demand for industrial properties in Bellingham is still strong. Both businesses and investors are competing for industrial and manufacturing buildings in the City of Bellingham and its surrounding areas. Keep reading to learn more about manufacturing buildings in Bellingham WA.
The rental rates of manufacturing buildings in Bellingham for rent currently range between $0.55 and $0.65 per square foot. These lease rates are typically considered NNN. NNN represents the 3 major expenses incurred by the building owner, which are the property taxes, property insurance, and common area expenses. When a commercial real estate broker states that a lease is NNN, they mean that the tenant will pay the base rent and additional rent monthly to help cover the additional expenses. Typical NNN fees for industrial space in Bellingham range between $0.09 and $0.15 per square foot monthly.
There are different types of industrial properties available for sale and lease available in Bellingham WA. These include storage condos, industrial parks, industrial storefronts, former training facilities, garages, greenhouses, warehouses, and other types of manufacturing buildings.
It is also important to pay close attention to manufacturing building’s amenities. It’s worth noting that industrial properties in Bellingham WA come with amenities like parking space, yard space, office space, restrooms, truck access, loading docks, grade level doors, power requirements, ceiling height, and the list goes on…
The age of the building will also have an impact on the value of an industrial property. The majority of manufacturing buildings in Bellingham were built between 1970 and 2018. As buildings get older, the mechanical and structural components can deteriorate or become obsolete. It is important to pay close attention to the roof, onsite drainage, and electricity. Some equipment will require 3 phase power and heavy amperage. Not only can the wiring become old and require replacement over time, but the cost to bring in more power and upgrade can be very costly. You will want to plan ahead and budget for these items based on your inspections.
The industrial properties in Bellingham vary in size and style. There are few true industrial parks in Bellingham, so many of the industrial buildings are stand-alone. This is preferential to most manufacturing companies as they frequently require more land for yard space and employee parking. While there are buildings as small as 3,000 to 5,000 square foot, most of the industrial buildings in Bellingham range between 10,000 and 30,000 square feet.
It’s worth noting that the price for Bellingham WA manufacturing buildings largely depends on such factors as the type of an industrial property, location, size of a building, size of industrial space available, year built, and amenities. The range for industrial building values is between $80 per square and $120 per square foot. Industrial buildings in the $80 per square foot range are likely to be older and tired. You should expect some functional obsolescence, and the buildings will probably have poor truck access, lack loading docks, and possibly have deferred maintenance. For buildings to be valued in the $120 per square foot range, they are likely smaller with additional land and yard space. These buildings are likely new with upgraded power and located near the freeway with great truck access. Most of the industrial manufacturing buildings in Bellingham are valued around $100 per square foot.
While there are industrial buildings located throughout the City of Bellingham, most of the true manufacturing buildings will likely be located in the Irongate area. The majority of the zoning in Bellingham that allows industrial warehouses is going to be Light Industrial. For large manufacturing businesses, they will likely need to be located in Heavy Industrial zoning. The Heavy Industrial zoning in Bellingham is located in the Irongate industrial area of Bellingham.
Start your search for Bellingham industrial buildings for sale or industrial space for lease today. Our brokers at North Sound Commercial are standing by to help you relocate your business now.