Mainebiz

V O L . X X V I I N O. X V I 60 Fact Book / Doing Business in Maine was in the right area and the building had strong tenancy. Represented by Robert Tragemann of Colliers Maine, Hampshire found 41 Spring Hill Road in Saco, a 14,160-square-foot industrial building that hit the marks. e hunt lasted a couple of years because the client had specific param- eters in a market with limited inven- tory, says Tragemann. "Although it took a long time, it wasn't that time-consuming, in the sense that we looked at two properties over the course of just over a year," he says. e process became more challeng- ing when the pandemic hit. "You had to be ready to put a prop- erty under contract basically the day it went on the market," he says. Global queries When Candy Manor, a Chatham, Mass.-based chocolatier, was looking for a space to expand production and hoped to lease an industrial space. High real estate costs on Cape Cod convinced owners Paige Piper and Robbie Carroll to look northward, to Portland. ey also reasoned that it would be easier to find staff in Portland. Boulos Co.'s Sasha Bogdanovics and Jon Rizzo found a 5,000-square-foot space at 651 Riverside St., in a Portland corridor known for industrial parks. Candy Manor needed space sufficient for production and HVAC, as well as flex space, which is already in high demand in the Portland market. "We had been searching for 6-plus months," says Rizzo and Bogdanovics. "We've seen vacancy rates in the sub-2% range for this kind of space so it wasn't an easy requirement." Greater Portland is already on the map for businesses "from away." "We have seen companies from all over the globe look to expand operations in Maine," they said. "We have been working with companies from Australia, Malaysia, Norway, the Faroe Islands, etc. looking for space in Maine. is ranges from office space to industrial space." Shockwaves While the industrial vacancy rate is below 2%, the office market has eased. Given the work-from-home trend in the past two years, it has been a bit easier to find office space. "Until recently, commercial real estate supply and demand has largely been in balance," says Paszyc. "However, the pandemic has sent shockwaves through the industry, creating more demand for industrial, self-storage, land, single-and- multifamily housing and QSR [quick ser- vice restaurants]; and shrinking demand for office and certain elements of retail. He continues, "e industrial market is still very tight throughout the state, and we've seen rental rates for industrial approaching and even exceeding office rental rates in certain markets." Paszyc says the industry is seeing developers starting to construct indus- trial buildings on spec, speculating that if they build it, they will come. "While we see this all the time in larger markets such as Boston, this is rare for Maine," he says. Brokers note that client needs can change during the search. Lamontagne represented engineering, architect and design firm WBRC Inc. in its search for larger Portland offices. "We spent two months scouring the inventory and, during that experience, they were able to weigh the pros and cons of being downtown versus a subur- ban location," he says. Ultimately, WBRC leased a redevel- oped former Rite Aid outside of down- town but with easy access, new open space and free parking. "It was a great example of needs evolving during a search period and good communication and acceptance of feed- back from management," he says. Paszyc notes that searches might end with nothing, as client priorities change or suitable solutions can't be found. "As one client often puts it, 'We can spin a lot of wheels in our business,'" he says. Laurie Schreiber, Mainebiz senior writer, can be reached at lschreiber @ mainebiz.biz BUSINESS ADVICE FINANCING POLICY ADVOCACY From 'just an idea' to grand openings and beyond, CEI is here to support your small business dream at every stage. www.ceimaine.org » C O N T I N U E D F RO M P R E V I O U S PA G E You had to be ready to put a property under contract basically the day it went on the market. — Robert Tragemann Colliers Maine P H O T O / C O U R T E S Y O F C O L L I E R S M A I N E Robert Tragemann

• Cover