Landmark Q3 2025 Multifamily Update



Welcome. I’m Troy Muljat, Owner and CEO of Landmark Real Estate Management.
Each quarter we bring you a concise look at what’s happening in the multifamily market—nationally, locally here in Whatcom County, and across the Landmark portfolio.

Who We Are

At Landmark, our purpose is simple: we open doors and build wealth.
We help property owners preserve and grow their real-estate investments through trusted management, structured operations, and an investor-focused mindset. Our core values guide every decision we make:

• Do what’s right
  
  
• Maintain accountability
  
  
• Solve problems
  
  
• Drive change
  
  
• Serve others first
  
  

National Market Overview

• It’s a buyer’s market. With bonus depreciation restored to 100%, investor incentives are strong.
  
  
• New construction is slowing, reducing vacancy pressure and stabilizing rents.
  
  
• Vacancy rates remain near 10-year highs but have leveled off around 8.2%.
  
  
• Rents are flat to slightly increasing; sales volume remains down about 60% from 2022 peaks but shows signs of recovery.
  
  
• Cap rates have likely topped; values are beginning to rise again as we head into 2026.
  
  

Key takeaway: conditions are improving for investors positioned for long-term multifamily growth.

Local Market: Bellingham & Whatcom County

• Vacancy peaked earlier this year and has now dropped below 6% for the first time in nearly two years.
  
  
• Rent per square foot continues to outperform the national average, averaging $2.20–$2.25 locally.
  
  
• Sales volume remains light but healthy; one large sale on Samish Way drove a quarterly record.
  
  
• Construction has slowed significantly, tightening future supply and supporting rent stability.
  
  

Landmark Portfolio Highlights

• Landmark’s overall vacancy rate is 3.8%, including new lease-ups, and 3.2% for stabilized properties.
  
  
• Average rents per unit continue to rise:
  
  
• Studios: $1,339
  
  
• 1-Bed: $1,454
  
  
• 2-Bed: $1,774
  
  
• 3-Bed: $2,330
  
  
• 4-Bed: $2,975
  
  
• Market activity has prompted owners to increase marketing spend and consider moderate rent concessions.
  
  

Regulatory & Legislative Updates

• Ferndale & Bellingham ballot initiatives: Landmark urges local owners to review both carefully; several proposals could restrict fees, limit flexibility, and affect new housing development.
  
  
• State clean-building standards: Properties over 20,000 sq. ft. must comply between 2026–2028. Landmark is guiding clients through compliance and vendor selection.
  
  

Looking Ahead

• Interest rates appear to have peaked and are expected to decline through 2026.
  
  
• Slower construction and steady absorption point toward a balanced rental market.
  
  
• The rental-versus-ownership gap remains large—favorable for continued rental demand.
  
  
• Landmark continues to invest in technology and training to serve clients more efficiently.
  
  

Client Services & Next Steps

• 2025 budgets are being finalized and reviewed with property owners before Thanksgiving.
  
  
• Winterization and snow contracts are underway.
  
  
• AppFolio conference: our team will attend to stay ahead on property-management technology and trends.
  
  
• Client Appreciation Event: January 2026 – save the date.
  
  

Stay Connected

If you’d like a free market analysis or have questions about your property, contact:
Kim or Troy. 

Thank you for trusting Landmark with your properties and for being part of our quarterly update.