Mainebiz

JA N UA R Y 9 , 2 0 2 3 14 2 0 2 3 E C O N O M I C O U T L O O K F O C U S for hospitality and residential use. at's likely to continue, he says. More broadly, the industrial market has been holding up well and is likely to continue that way. Retail real estate has been surpris- ingly strong. "It's been more stable than I expected," he says. Also likely to continue is condo- minium and apartment development. "I think the inventory is still below market, despite the fact that construc- tion costs are so high," he says. "ere seems to be an appetite for additional units and developers are still meeting that. It's slowed a bit, but it's still pretty strong despite high interest rates." e overall outlook? "ere's more caution but, right now, the market is pretty steady," says Malone. B A N K I N G Machias Savings braces for 'softening' loan demand B Y R E N E E C O R D E S M achias Savings Bank is bracing for weakening loan demand in 2023, according to the company's president and CEO, Larry Barker. "We're expecting loan demand to soften following the rapid rise in interest rates," he says, noting that res- idential mortgage volume has already dropped off significantly. "Although our business lending pipelines con- tinue to be very strong, we do expect some softening" this year. ere is a plus side of rising inter- est rates, the Downeast banker says. "Our margins tend to get stron- ger," says Barker, who comes from an agricultural background raking blue- berries as a teen and has led Machias Savings Bank since 2012. Specifically, 60% of the bank's loan portfolio consists of variable rate loans, which are adjusted upwards over time as the Federal Reserve Bank raises rates, he says. With $2.3 billion in assets, Machias Savings Bank ranked No. 5 among Maine-based banks in the 2023 Mainebiz Book of Lists published in December. e bank has 315 employees and 15 loca- tions from Caribou to Portland. Asked about expansion plans, Barker underscores that growth will continue to be organic, "one customer and one talented employee at a time." Machias Savings will also continue to invest heav- ily in cash management solutions, he says. Barker's outlook for Maine's bank- ing sector as a whole: "Loan volumes will continue to soften, adding to the constant challenge of growing rev- enues faster than expenses." He adds that while it's hard to pre- dict what direction the economy will take, "Maine banks are strong and well- positioned to weather a storm." H O U S I N G / N O N P RO F I T Avesta to add 167 affordable dwellings in 2023 B Y R E N E E C O R D E S W ith thousands of people on Avesta Housing's wait list for affordable dwellings, the head of the Portland- based nonprofit has a lot on her plate for 2023 and well beyond. "We are working diligently to pro- vide more homes for people in need," says Rebecca Hatfield, president and CEO. "Avesta has 700-plus units in various stages of our real estate develop- ment pipeline and are actively pursuing additional opportunities to bring more affordable homes to the market." Avesta properties scheduled to open in 2023 include West End II in South Portland and Hillside at Village Square in Gorham, for residents of all ages, and Porter Station in Portland and Snow School in Fryeburg for people age 55 and older. When completed, the developments will provide 167 new dwellings. "We are also in various stages of development on other properties that we anticipate will open in 2024 and beyond," Hatfield says. Hatfield, who succeeded Dana Totman in the leadership role at Avesta last September, was honored as a Mainebiz Woman to Watch in 2021. Asked about her leadership style, Hatfield says: "My approach to leadership is through collaboration, empowerment and transparency. I funda- mentally believe that a team with diverse perspectives working toward a shared goal will have the greatest impact." Top priorities in 2023: To increase affordable housing options and cre- ate more safe, affordable homes for people in need; and to expand access to support services. "What sets Avesta apart," Hatfield says, "is our focus on creating safe, supportive communities with a wide variety of amenities and by connect- ing people in need to services so they can live healthy, stable, and purposeful lives. We are committed to collaborat- ing with partners to expand support services that promote housing stabil- ity and resident success." H I G H E R E D U CAT I O N Maine Law embarks on new chapters in Portland, Fort Kent B Y R E N E E C O R D E S T he University of Maine School of Law will ring in the new year in a new Portland home, at 100 Fore St., in the city's Old Port. "e plan is that the first classes for Maine Law and the [Maine] MBA pro- gram will happen on Jan. 17," Maine Law Dean Leigh Saufley said in mid-Decem- ber as final preparations were going on. "Over these next three weeks," she said, "the final construction is being completed, the punch lists are being reviewed, and we hope that there will be a smooth opening for our students at the start of the spring semester." e school's downtown move will put it under the same roof as the other parts of the University of Maine System. » C O N T I N U E D F RO M PA G E 1 2 P H O T O / J I M N E U G E R P H O T O / T I M G R E E N WAY Rebecca Hatfield, president and CEO of Avesta Housing, was honored as a Mainebiz Woman to Watch in 2021. P H O T O / C O U R T E S Y O F M A C H I A S S AV I N G S B A N K Larry Barker, president and CEO of Machias Savings Bank We are working diligently to provide more homes for people in need. — Rebecca Hatfield Avesta Housing Leigh Saufley is the dean of the University of Maine School of Law, the state's only law school.

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