2018 Southern Maine OFFICE FORECAST Nate Stevens Associate Broker - - PowerPoint PPT Presentation

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Dec 04, 2023 282 likes •440 views

2018 Southern Maine OFFICE FORECAST Nate Stevens Associate Broker THE MARKET OVERVIEW SUBMARKET FALMOUTH, SIZE CUMBERLAND & 341 YARMOUTH 1,043,195 Buildings Surveyed PORTLAND DOWNTOWN 4,335,200 12.1.2017 Total SF WESTBROOK

SLIDE 1 Southern Maine OFFICE FORECAST

2018

Nate Stevens Associate Broker

SLIDE 2 THE MARKET OVERVIEW 12.1.2017 Total SF 12,096,486 12.1.2016 Total SF 11,904,986 191,500 SINCE 2016 PORTLAND DOWNTOWN 4,335,200 MAINE MALL AREA 2,054,193 SUBURBAN PORTLAND 1,881,761 FALMOUTH, CUMBERLAND & YARMOUTH 1,043,195 MEDICAL 1,276,792 SCARBOROUGH 878,826 WESTBROOK 626,519 SUBMARKET SIZE 341 Buildings Surveyed MEREDA’s 2018 Annual Forecast Conference Southern Maine Office Forecast | Nate Stevens

SLIDE 3 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference THE MARKET BUILDINGS ADDED IN 2017 191,500 ± SF TOTAL 705 US Rte One, Yarmouth 35,000± SF 16 Middle Street, Portland 42,000± SF 1 Tyler Drive, Yarmouth 94,500± SF expansion 97 Technology Park Dr, Portland 20,000± SF MAINE MEDIA COLLECTIVE

SLIDE 4 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference

4.41 %

THE MARKET HIGHLIGHTS

363,486± SF positive net

absorption

Low supply continued
Class A: Landlord market

Class B: Tenant market

Transaction volume decreased
Large transactions shaped the

market

New construction took shape

Total Market Direct Vacancy for 2017 is 4.41%

SLIDE 5 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference THE MARKET VACANCY RATES Downtown vs Suburban DOWNTOWN 14 12 10 8 6 4 2 2012 2013 2014 2015 2016 2017 CLASS A CLASS B 14 12 10 8 6 4 2 2012 2013 2014 2015 2016 2017 SUBURBAN CLASS A CLASS B

SLIDE 6 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference TRANSACTIONS SIGNIFICANT TRANSACTIONS - DOWNTOWN SUBLEASE - 12,761± SF One Monument Square, Portland Certify Drew Sigfridson, SIOR - CBRE | The Boulos Company Justin LaMontagne - NAI / The Dunham Group LEASE - 90,000± SF Hancock Street, Portland WEX Thomas Moulton - NAI / The Dunham Group Charlie Craig - NAI / The Dunham Group

SLIDE 7 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference TRANSACTIONS SIGNIFICANT TRANSACTIONS - SUBURBS/MEDICAL 134,349± SF SALE Maine Health One Riverfront Plaza, Westbrook Charlie Craig - NAI / The Dunham Group Joe Malone/Jen Small - Malone Commercial Brokers 30,000± SF LEASE WEX 75 Darling Avenue, South Portland Greg Hastings - NAI / The Dunham Group Frank O’Connor - NAI / The Dunham Group 19,435± SF LEASE Maine Health 265 Western Avenue, South Portland Drew Sigfridson, SIOR CBRE | The Boulos Company 24,000± SF LEASE Intermed 50 Foden Road, South Portland Frank O’Connor NAI / The Dunham Group 11,068± SF LEASE FedCap Rehab Services 220 Maine Mall Road, South Portland Mike Anderson Malone Commercial Brokers 25,000± SF LEASE Clark Insurance 1945 Congress Street, Portland Roxane Cole Roxane Cole Commercial Real Estate 10,038± SF SALE NE Foot & Ankle (St. Mary’s) 117 Auburn Street, Portland Kevin McQuinn Lux Realty

SLIDE 8 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference TRANSACTIONS SIGNIFICANT OFFICE INVESTMENT SALES 82 Running Hill Road, South Portland 120,000± SF $17,900,000 Charles Day - CBRE | The Boulos Company Tom Moulton - NAI / The Dunham Group 63 Marginal Way, Portland 27,740± SF $5,400,000 Charles Day - CBRE | The Boulos Company Joe Porta, SIOR - CBRE | The Boulos Company 280 Fore Street, Portland 69,481± SF $21,500,000

SLIDE 9 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference 0.00% 0.02% 0.04% 0.06% 0.08% 0.10% 0.12% 0.14% 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 ‘97 ‘99 ‘01 ‘03 ‘05 ‘07 ‘09 ‘11 ‘13 ‘15 ‘17 279,000± SF NEW CONSTRUCTION 172,500± SF NEW CONSTRUCTION 198,000± SF NEW CONSTRUCTION 198,000± SF NEW CONSTRUCTION LOW VACANCY = NEW CONSTRUCTION NEW CONSTRUCTION

SLIDE 10 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference NEW CONSTRUCTION UNDERWAY 0 Hancock Street Portland 100,000± SF 90,000 leased to WEX Fall 2018 Widgery Wharf Portland 18,000± SF Top floor leased to FL Putnam Late 2018 Ocean Gateway expansion Portland 12,500± SF Three floors of office space added to garage Spring 2018 1945 Congress Street Portland 40,300± SF in two buildings Clark Insurance & Diversified Partners Spring 2018 170,800± SF

SLIDE 11 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference NEW CONSTRUCTION PLANNED, PERMITTING, PRE-LEASING Portland Foreside Portland Up to 120,000± SF Fisherman’s Wharf Portland 45,000± SF 170 Fore Street Portland 45,000± SF One Union Wharf Portland 14,815± SF 307,276± SF Thompson’s Point Portland 60,410± SF 266 Commercial Street Portland 22,051± SF

SLIDE 12 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference NEW CONSTRUCTION POTENTIAL DEVELOPMENT SITES ON THE HORIZON ???± SF TOTAL Bayside, Federated Companies site, Portland Johnson Road, Portland Portland Square, Portland 385 Congress Street, former Press Herald, Portland West Commercial Street, JB Brown lots, Portland 100 Fore Street, Portland

SLIDE 13 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference CONCLUSIONS GREATER PORTLAND’S OFFICE MARKET HISTORICAL DIRECT VACANCY RATES DIRECT VACANCY 533,390± SF 4.41% SUBLEASE 24,826± SF 0.21% TOTAL 558,216± SF 4.61%

SLIDE 14 Southern Maine Office Forecast | Nate Stevens MEREDA’s 2018 Annual Forecast Conference CONCLUSIONS PREDICTIONS

Demand stays relatively low

as office users get creative

Older, unimproved products

continue to struggle

New construction downtown

to create opportunities elsewhere, more supply?

2-3 new office buildings

in Greater Portland, 1-2 in downtown Portland

Relatively flat vacancy rate
Medical office continues to

be market driver

SLIDE 15 Nate Stevens Associate Broker 207.553.1702 D 207.272.2385 C nstevens@boulos.com One Canal Plaza Suite 500 Portland, ME 04101 207.772.1333 www.boulos.com Special Thanks: Jessica Estes Michelle Peacock