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V O L . X X I X N O. I JA N UA R Y 9 , 2 0 2 3 12 2 0 2 3 E C O N O M I C O U T L O O K E C O N O M I C D E V E L O P M E N T Brunswick Landing's goals include early tech development and new space B y L a u r i e S c h r e i b e r T he team that oversees Brunswick Landing has been proactive in attracting great companies that are focused on innovation and the future. "Our job is to create a solid foun- dation that can support new compa- nies, new housing and new recreation opportunities," says Kristine Logan, executive director of Midcoast Regional Redevelopment Authority, which man- ages Brunswick Landing. Last year, Brunswick Landing added 23 tenants and sold four parcels for development, bringing the number of public and private entities at Brunswick Landing and Topsham Commerce Park to over 160, including 39 early-stage technology companies at their technol- ogy incubator, TechPlace. In all, some 114 acres were sold, with about half being put into conservation. e redevelopment authority has cre- ated property tax revenue for the towns of Brunswick and Topsham, preserved a total of 1,200 acres to be used for con- servation and recreation and added 200 new housing units. Coming up, goals include new wayfinding signage and, together with Maine DOT and Gorrill Palmer, finishing the design work for a bike- and-pedestrian trail. In the spring, construction will begin on Phase I of the town's new Midcoast Athletic & Recreation Complex and additional housing that includes 188 apartment units, 85 single-family homes and 63 condominiums. With education a redevelopment focus, MRRA, with the University of Maine Augusta, will open an Aviation Maintenance Technician School where students will train to be aviation techni- cians, and planning will begin for a new Life Science Center to support early- stage biotech companies. As Brunswick Landing welcomes the "new space" industry, development of facilities to support the Maine Space Complex will begin along with efforts to attract new space companies. "We have clearly established Bruns- wick Landing as Maine's Center for Innovation and we are excited for our upcoming 2023 projects," says Logan. R E S I D E N T I A L R E A L E S TAT E Tight market and price appreciation likely to continue B y L a u r i e S c h r e i b e r W ith rising interest rates and tight inventory, Maine's resi- dential real estate market is likely to see fewer transactions in 2023 than in the last three years. "e big factor here is inven- tory," says Dava Davin, owner of Falmouth-based Portside Real Estate Group, which has seven offices from Brunswick south to Portsmouth, N.H. "It will remain excruciatingly tight in some markets. ere may need to be more listings on the market to meet the continued demand in certain segments." Although mortgage rates remain significantly higher than the low rates that contributed to the buyer frenzy of recent years, the rates may have peaked, she says. Nevertheless, she predicted, price appreciation will remain strong, per- haps with 3% to 5% annual apprecia- tion, not the double-digit growth of recent years. Some would-be sellers will likely stay in their homes longer. "e reasons for moving during the COVID years are less prevalent," she says. "Inflation is high, causing people to pause. We are seeing a more typical seasonal shift in the residential market. It could be a slower winter, but I predict things will pick up again in the spring of 2023." e overall outlook for 2023? "We will see fewer homes trading, prices staying strong, and the market will continue to move swiftly due to low inventory," Davin says. "Cream-puff listings and hot neighborhoods will con- tinue to see bidding wars, while other areas will see a more balanced market than we have seen in recent years." C O M M E R C I A L R E A L E S TAT E Office market is strong overall, but uncertainty continues B y L a u r i e S c h r e i b e r T he biggest variable in commercial real estate over the past year has been commercial office space. at's likely to continue through 2023, says Joseph Malone, founder and president of Malone Commercial Brokers in Portland. "Office is the weak spot," he says. "Many people still have not returned to the office." ere's been significant downsizing among some larger users, particularly national tenants. "I think that trend will continue in 2023, making office space the most unsta- ble segment of the commercial industry, particularly in the suburban market but, really, everywhere," Malone says. And the ripples from fewer office users trickles down to support busi- nesses around them. But downtown Portland seems to be something of a beneficiary of some of the downsizing. "Some suburban tenants have looked at coming downtown, taking less square footage for a higher-end office space," he says. "So downtown Portland has held up better than some of the southern Maine market." Developers are scouting out office buildings, particularly in downtown Portland, as conversion opportunities C O N T I N U E D O N PA G E 1 4 » » C O N T I N U E D F RO M P R E V I O U S PA G E P H O T O / C O U R T E S Y O F M A L O N E C O M M E R C I A L B RO K E R S Joseph Malone, founder and president of Malone Commercial Brokers in Portland P H O T O / C O U R T E S Y O F P O R T S I D E R E A L E S TAT E G RO U P Dava Davin, owner of Portside Real Estate Group. P H O T O / T I M G R E E N WAY Kristine Logan, executive director of Midcoast Regional Redevelopment Authority, says early-stage technology companies, education and the new space industry are among its upcoming redevelopment goals. F O C U S

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