Greater Portland vacancy rate drops to 5.5%

March 6th, 2014 by admin Leave a reply »

Justin Lamontagne, NAI Dunham Group
Justin Lamontagne, NAI Dunham Group

NAI The Dunham Group has once again produced the Greater Portland Industrial Market Survey and this year’s results were stunning. The overall vacancy rate in our market has dropped to 5.5%, down from an estimated high of 11-12% in 2007 2008. The total industrial inventory of roughly 16 million s/f has not increased in over those years. As a result, steady demand and growth has led to significant positive absorption. Accordingly, lease rates have risen across the board and landlord’s have regained leverage over tenants.

Local and regional industrial businesses have seen an improving economic landscape the last two years, in particular. Therefore, they finally feel comfortable and confident in reinvesting in their businesses through real estate expansions and/or relocations. We have not, however, seen a large amount of out-of-state companies come into the market. So the positive trends we’re tracking are truly organic growth.

Two booming industries in Greater Portland that have impacted the market are microbrewing and medical marijuana cultivation. Portland has become a hot-spot for the microbrewing craze and no fewer than a dozen small-medium sized breweries have opened in the last two or three years. Additionally, existing breweries like Allagash, Sebago Brewing and Maine Beer Co. have made significant real estate expansions in the last year. The medical marijuana industry, while controversial, has proven to be a boon for industrial landlords. These tenants are highly regulated, well-funded,

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