W
hitefish's growth policy is being updated to prioritize downtown as the community center and support local businesses. However, navigating the real estate market has become increasingly challenging for small business owners. Scott Strellnauer, a real estate broker since 1990, notes that Whitefish has transformed from a quiet railroad town into an amenity-driven destination, making it difficult for small business owners to afford downtown buildings.
The pandemic and subsequent desire for people to make life changes have driven recent shifts in the real estate market. Strellnauer explains that downtown properties are expensive due to their high demand and limited supply, much like lakefront properties. Investors must balance high costs with anticipated returns, making it challenging for buyers to justify rent and revenue.
To address affordability, building vertical and dividing spaces into smaller units has become more common in Whitefish. This approach has seen success on Central Avenue, where shops and condos or offices are placed above street-level stores. Many long-standing businesses that cater to locals own their buildings, but even they face rising property taxes and repair costs.
Imagination Station's owner, Denise Magstadt, notes that owning is the only feasible way for her business to stay open. Sappari, a clothing store next door, has rented for 25 years and credits local ownership with helping them stay in business despite online shopping risks. Business owners on Central Avenue express concerns about parking and solicitation.
The current market shows several downtown properties listed for sale, including Sage & Cedar and Sprouts Boutique at $3.6 million. Wasabi Sushi is listed for $2.3 million, as well as a unit at Forloh. Several downtown vacancies are also up for sale, including the upper level of the historic Masonic Temple Building.
The recent sale of 550 East First St. has led to several businesses moving out, with Jersey Boys Pizzeria and Whitefish Lake Institute relocating elsewhere in town. Runner Up Sports will move to Columbia Falls next month, citing generous options from the new owners but ultimately deciding to take advantage of a better opportunity.
