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W W W. M A I N E B I Z . B I Z 17 J U LY 2 4 , 2 0 2 3 F O C U S R E A L E S TAT E / C O N S T R U C T I O N / E N G I N E E R I N G Out of 128 business and real estate leaders world- wide surveyed by law firm DLA Piper in March, 77% said that there's no going back to pre-pandemic office occupancy levels — almost four times as many who had that expectation last year. Another survey, released in May by CBRE, of more than 200 corporate real estate executives, found that office space generally remains underuti- lized but varies by sector. While 71% of financial/ professional services firms now require a return to the office, only 56% of technology companies do so, with most insisting on attendance for less than half the week. What's the impact on commercial real estate? "Many investors, developers and tenants are now looking at offices the same way they used to look at regional shopping malls," DLA Piper says in its 32-page report. "While new, Class A office build- ings with significant amenities, strong ESG [envi- ronmental, social and corporate governance] may remain successful and sought-after, aging buildings could suffer in the new office paradigm." More than eight out of 10 respondents predicted a continuing need in 2023 to repurpose spaces and add amenities in office buildings, with one not- ing that "fallout from office distress is creating new opportunities for housing." e report also says that while the office market might not be quite as top-of mind as interest rates and inflation, it continues to significantly influence the post-pandemic outlook for commercial real estate overall. Office market in flux Last year in Greater Portland, both the Class A and Class B vacancy rates fell for the second straight year, for a combined rate of just 6.4%, down from 9.9% in 2020, according to a market outlook report published in December by Boulos Co. broker Nate Stevens. Generally speaking, Class A office space is high- quality, modern buildings in prime locations with nearby amenities, and a professional look; Class B space, while still desirable, is in good locations but in older or renovated buildings. e addition of two new downtown buildings — the Covetrus headquarters at 12 Mountfort St. and Sun Life's new anchor at 110 ames St. — added to the supply of Class A space in Portland in 2022. But Stevens attributes the improving Class B market to the conversion of office space to residential and hospitality uses, as well as most of those smaller buildings being occupied by local, small to medium-sized tenants that best weath- ered the pandemic. "ere is also considerable gray space in the Class B market, but that is likely to be offset from more significant building conversions over the next year," he predicted in December. Without any mid-year data to go by, Stevens nevertheless gets the sense that the direct vacancy rate has held steady over the past six to seven months, with the sublease space in downtown Portland ticking up slightly. We're proud to offer a wide selection of metal roofing and siding products. Give your home or business the color and style you're looking for with the durability and quality that only metal roofing and siding can provide. NOW OFFERING Screw Down Metal Roofing for just $3.59 per linear foot WAREBUTLER.COM 15 LOCATIONS ACROSS THE STATE metals@warebutler.com STANDARD COLORS ONLY Free delivery from our metal shops in Palmyra and Old Town Visit one of our stores, or email us using the contact form on our website, for more information on these products. Advertised price for limited time C O N T I N U E D O N F O L L OW I N G PA G E »

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