Sunnier days ahead

Looking forward to engaging with others and celebrating new opportunities

As we slowly transition from spring to summer in our corner of the United States, there is a hint of excitement in the air to get outside and enjoy everything our region has to offer. Now that events like Ski to Sea have returned after the COVID-19 hiatus, we look forward to engaging with others and celebrating the opportunities that our long, sunny days permit.

This issue of Business Pulse includes highlights of the talented leaders and dynamic businesses celebrated at our sold-out 36th Annual Whatcom Business Awards gala March 23 at Semiahmoo Resort. I want to take this opportunity to thank our many sponsors, attendees, guests and Whatcom Business Alliance crew for your ongoing support and participation in the 2023 event of the year! If you missed it, we’ve got some great event photos and highlights starting on Page 46. We hope you will join us next year to celebrate the backbone of our community — the business owners and leaders who work so hard to support our day-to-day lives. Nominations will be open in September for the 2023 annual awards celebration, planned for early next year.

In addition to our advocacy articles, this edition features several inspiring stories about Whatcom County businesses — some that are thriving just as they are and others that are considering changes. Regular columnist Cheryl Stritzel McCarthy profiles a business owner planning her exit strategy — with her employees in mind — in “How Do You Say Goodbye?” on Page 12. The salient points of selling a business are highlighted in “Selling a Business? Planning Ahead Is Key,” on Page 41. Cheryl also covers local small business Northerly Customs’ flourishing furniture business and the key that catapulted sales.

The difficulty of finding skilled or even motivated workers nowadays is reaching a crescendo. Delve into Lorraine Wilde’s story on workforce chal- lenges that many businesses, both here and across the nation, are facing. Meet tourism CEO Dylan Deane-Boyle as he settles into his new role in Whatcom County with Personally Speaking on Page 35. We welcome writer Tara Gilligan Reimer to our team; despite the imminent complete closure of Alcoa in Ferndale, her article gives us hope for the potential that the geographically gifted Cherry Point industrial zone offers for high-paying jobs in our region.

At the time this issue is heading to print, the 105-day legislative session is nearing its end. Whatcom Business Alliance has advocated for commonsense policies that support businesses and individuals in our region. We appreciate the prompt responses of our WBA members when action alerts have been necessary to raise our collective voices on important issues arising throughout the session. A full report on what went right and wrong in the Washington Legislature will be included in our next issue.

In the meantime, enjoy this issue of Business Pulse. Thank you, as always, for your ongoing support to fellow readers and our leaders and advertisers. We could not do what we do without you!

JULY 14

WBA Member Appreciation Night

Bellingham Bells Game

AUG 18

Presidents ClubSan Juan Islands Cruise

OCT 19

Leaders of Industry Issues Forum

Hotel Bellwether

DEC 6

Economic Forecast Breakfast

Bellingham Golf & Country Club

For more information, go to: whatcombusinessalliance.com

Bellingham Cold Storage to open new storage facilities in Skagit County

Bellingham Cold Storage (BCS), a leading provider of frozen, chilled and dry storage, will open two new warehouse logistics facilities in Skagit County June 1, 2023.

“For the past 77 years, BCS has been a very customer-centric provider of warehousing and logistics services to the United States, Canada and internationally, and we are excited to be a supportive part of the Skagit Valley business community,” said Doug Thomas, president & CEO of Bellingham Cold Storage.

The BCS–Burlington cold storage facility — located at 301 S. Walnut Street in one of three buildings formerly operated by Americold Logistics — includes a 69,700-square-foot cold storage warehouse and an enclosed 7,000-square-foot loading dock with five dock-height doors for truck and railcar loading. The facility will accommodate frozen products that require receiving, storage and outbound picking and distribution services throughout North America and beyond.

The BCS–Burlington dry storage warehouse — located at 1600 Port Drive — will add 65,000 square feet of dry storage. It features 16 dock-height doors and a surface-level drive-in door. This facility will accommodate various dry goods and materials that are often integral to food processing and value-added activities for BCS customers.

“BCS will continue to operate independently throughout the Pacific Northwest and uphold its commitment to providing customers with the same highly detailed services that we have become known for,” said José Roques, BCS senior vice president of marketing and sales.

Visti www.bellcold.com.

Launching Success moving to downtown Bellingham

A woman-owned retail store with educational toys and materials for all ages is moving to downtown Bellingham.

Owned by Jen Scheib and Kristen Ladiges, Launching Success will relocate to the former Perch & Play space at 1707 N. State St. The store’s last day at 133 Prince Ave. will be May 26, and it will reopen May 30 in a 6,000-square-foot space in downtown Bellingham.

“The new location is close to Interstate 5 and will be easy to reach for customers, as well as providing us better visibility,” Scheib said. “The fresh start also will include some new product selections.”

Launching Success offers a wide variety of products. Some of the top categories are science, building, preschool and early learning and social/ emotional development.

“We love children and believe that good education equips young people to become adults who make our communities a better place to live,” Scheib said. “Our goal is to provide educators and parents teaching tools that lead to the best learning possible.”

A grand reopening and 20th anniversary celebration will be held June 24. Visit launchingsuccess.com.

Western Refinery Services promotes three managers

Ferndale-based Western Refinery Services recently promoted three managers to positions of increased responsibility.

Dustin Bliss was named construction manager, overseeing all aspects of construction operations. He is responsible for managing the people and direction of the division, bidding projects and reporting to ownership. Bliss has 10 years of experience in the construction industry, including eight years at WRS.

Sam Kloes took on the role of general superintendent in addition to his role as construction technology manager. Kloes has been at WRS for six years and has 20 years of experience in the construction industry. As general superintendent, his primary responsibility is ensuring that WRS foremen and superintendents have the manpower and equipment they need to perform work in the most efficient manner possible.

Evan Zofkie, a WRS employee for the past five years, was promoted to project manager. He now estimates projects for future work while man- aging current projects to ensure they stay on track with their budgets and schedules.

Visit wrsweb.com.

Port acquires complex to support industry

The Port of Bellingham has purchased about 6 acres, including six buildings with approximately 71,000 square feet of office and industrial space, to support the continued growth of Whatcom County industries. The Port’s new industrial complex is located at 742 Marine Drive and is less than a mile from Port-owned land and buildings near Squalicum Harbor.

“Whatcom County’s industries are thriving, and there is strong demand for Port-owned land and industrial space,” said Port Commission President Michael Shepard. “The Port’s new industrial complex provides another strategic asset to support the growth of our economy and create good-paying jobs for our community.”

Port land and infrastructure are vital assets to Whatcom County’s economy and create and support thousands of jobs.

“Expanding industrial areas is a priority for the Port,” said Port Executive Director Rob Fix. “There are significant opportunities for growth, and the acquisition of a new industrial complex better positions the Port to support our existing tenants and recruit new employers to Whatcom County.”

Throughout Whatcom County, the

Port owns approximately 1.4 million square feet of office, commercial and industrial building space. It has contracts with 250 industrial and commercial tenants that provide thousands of jobs for the community. Learn more at portofbellingham.com.

Bradley Engineering Inc. employee gains professional engineer license

Bellingham native Peter Finfrock has been working at Bradley Engineering for nearly five years. He has been involved in more than 750 structural engineering projects, including single-family and multifamily homes, commercial buildings and barns. He graduated from Montana State University with two degrees, including one in mechanical engineering. Finfrock recently passed the Principles and Practices of Engineering exam to complete requirements for the professional engineer license.

“As a growing structural engineering firm, Bradley Engineering is committed to providing our clients with the highest level of expertise and professionalism,” said company founder David Bradley. “We are confident that Peter’s new licensure will benefit our clients and further enhance our firm’s capabilities.”

Visit bradleyengineeringinc.com.

Museum honors Schatz with SPARK Award

SPARK Museum of Electrical Invention recently presented its SPARK

Award to Dennis Schatz, a renowned science educator and advocate for informal science education. The award, which recognizes outstanding contributions to science education and advocacy, was presented at Ignite the Night, the museum’s fourth annual fundraiser, March 18.

“We selected Dennis Schatz for his dedication to informal science education and his huge impact on science education in general,” said John Jenkins, SPARK Museum president and CEO. “Making science accessible and relevant is something we strive for at the museum, and Dennis is a wonderful choice as we look to honor those who are truly making a difference when it comes to science education.”

Visit sparkmuseum.org.

Peoples Bank names Anndi Pena senior mortgage loan officer

Peoples Bank recently announced the appointment of Anndi Pena to senior mortgage loan officer at the Barkley Financial Center. She brings 36 years of experience in the financial services industry and has specialized in residential mortgages since 2007.

Visit peoplesbank-wa.com.

Bellingham architecture firm promotes long-term staff member to principal

Since joining RMC Architects in 2006, Jason Williard has distinguished himself with a rare combination of determination and confidence coupled with good humor and personability, the company stated in a press release announcing his promotion to principal.

“Jason is tenacious in the high standards he sets for his work and is respected by his colleagues, peers and the RMC staff as a true leader,” the company wrote.

Williard has worked on some of RMC’s most notable projects, in- cluding Peoples Bank in the Barkley Financial District, the Rocket Building in the Fairhaven Historic District, Spring Street Landing on the Friday Harbor Waterfront, and Bellingham Public Schools District Office Building, currently in progress. Visit rmcarchitects.com.

The Muljat Group in Bellingham welcomes new broker

Jay Chen, who has represented clients in 59 home sales valued at more than $34 million in the past two years, recently joined The Muljat Group in Bellingham as a broker.

Chen has more than three years of real estate sales experience and nine more years of marketing and sales experience. His family immigrated from Taiwan to Bellingham in 1999. Chen graduated from the University of Washington and is fluent in Mandarin Chinese.

“I treat my clients exactly how I’d like to be treated,” Chen said. “I don’t like to be pressured, so I never pressure my clients. I like to be treated kindly, so I always bring a positive attitude. I don’t let people down with empty promises, so I do exactly what I say.”

Retail vacancy rate continues decline

The market for retail space in Bellingham was surprisingly strong in the first quarter of this year, according to a report prepared by Ryan A. Martin, co-owner and broker at Pacific Continental Realty in Bellingham. Bellingham’s retail vacancy rate declined for the third consecutive quarter, this time by 0.1%.

“Both the retail asking rate and the vacancy rate at the end of the first quarter were the best in Bellingham in the last two years,” Martin said. “The asking rate increased from $19.36 per square foot to $19.86 in that period, and the vacancy rate has fallen from

3.6% to 2.7%.”

“Over the last couple of years, we are finally seeing a shift from traditional retail uses of space to more activity-based retail tenants,” Martin added. “This is evident in the Bellis Fair mall, as we see new tenants that include an alternative high school, Airsoft gaming room, community wrestling, and Playdate (young children’s play and party area).”

Overall, the commercial real estate leasing market in Bellingham remains strong despite continued interest rate increases from the Federal Reserve.

“The national commercial banking concerns caused by a handful of recent bank closures have yet to have a direct impact on demand for Bellingham commercial real estate,” Martin said.

The market for industrial space in Bellingham became even tighter, with the vacancy rate falling again from 1.2% in the fourth quarter of 2022 to 1% in this year’s first quarter. While the average asking rate for industrial space dropped from 89 cents to 83 cents per square foot, Martin said this is because the remaining available space is the most challenging to lease due to unique characteristics.

Like most of the country, Bellingham’s weakest commercial property sector is office space. The current vacancy rate for office space in the city ticked up again to 5%, which is up from 4.9% in the fourth quarter of 2022 and from 3.6% in the second quarter.

“The decline is mostly due to the recent trend of large office tenants downsizing their office footprints to reduce overhead costs and accommodate the work-from-home movement, plus anticipation of a slower economy this year,” Martin said.

The average asking rate for office space in Bellingham dropped during the first quarter, from $19.88 per square foot to $19.78, but it has increased 35 cents per square foot since one year ago.

Whatcom County home sales — but not prices — plunge in Q1

The rise in mortgage rates over the past year significantly affected how many Whatcom County homes were sold in the first quarter compared to a year ago. However, sale prices were not affected.

Just 423 homes were sold in the first three months of this year, a 29.5% fall from last year’s first quarter, according to Peter Ahn, co-owner of The Muljat Group in Bellingham. Ahn prepared a report based on data from the Northwest Multiple Listing Service.

However, the median price of Whatcom County homes that did sell was $584,950, a dip of only 2.5% from a year ago.

“The market will require time to adapt to higher interest rates, but we don’t anticipate prices to fall dramatically,” Ahn said. “Inventory is still very low, and Whatcom County has very desirable places to live.”

“Another contributing factor to home prices not dropping much are the loan products that are available. Buyers are able to obtain buydowns for their mortgage rates, and many times the contributions come from the seller.”

The other notable takeaway from Ahn’s report was the average time homes were on the market before being sold, which soared 148% countywide to 62 days. Bellingham, typically the county’s hottest home market, jumped from 16 days in the first quarter of 2022 to 48 days in this year’s first quarter.

“We’re at the very early stages of higher interest rates,” Ahn said. “Sellers need to become more patient with selling their homes. Unless your house is in a core neighborhood or is priced competitively with the intent to sell quickly, it is becoming more and more realistic that your house will require up to two months to sell.”