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V O L . X X X I N O. I JA N UA R Y 1 3 , 2 0 2 5 16 E C O N O M I C F O R E C A S T F O C U S R E A L E S TAT E Real estate experts expect shift in Maine residential growth, 'normal' year for commercial B Y R E N E E C O R D E S W hen it comes to residential real estate, the center of gravity may be shifting northward from pricey south- ern Maine, according to Dava Davin, CEO and owner of the Falmouth- based Portside Real Estate Group. "We'll likely see continued growth in central Maine, as more buyers are priced out of southern Maine and look for affordability and space," she says. Davin predicts a year of opportu- nities and challenges for the market as a whole. "Home prices are expected to increase, but at a more modest pace than in recent years — likely in the 2% to 4% range overall, she says. She also predicts that demand will remain strong with higher inventory levels compared to 2024, "which could help ease price growth slightly and provide more options for buyers. Win, win!" A 'normal' commercial market Commercial real estate, on the other hand, is likely to be a bit quieter. "I expect 2025 to look and feel … normal," says Justin Lamontagne, a partner and designated broker with the Dunham Group. "e crazy post- COVID market has plateaued and it's back to business as usual." As for the industrial niche, "the southern Maine industrial vacancy rate increased for the first time since the pandemic, but only slightly," and remains low at only 2.5%, he says. "It's still a landlord's market." Lamontagne's advice to any busi- ness currently searching for industrial or commercial space is to get creative. Working Together Toward a Common Goal Working Together Toward a Common Goal At The Dunham Group we're more than just a team of brokers, we're a collaborative force. Our open office environment allows our brokers to share knowledge and expertise so we can connect clients with the right opportunities for their growth. Put Our Collaborative Approach to Work for You. 2 Monument Square, Portland, ME | 207.773.7100 | dunhamgroup.com Conf lic t costs ever yone. Call one of our trusted and resourceful neutrals. Elizabeth Germani Mark Franco Daniel Rose As practicing attorneys and mediators, Drummond Woodsum's team offers unparalleled insight into complex legal issues. It isn't just a higher level of support that comes with this expertise, we use an inclusive approach that uses empathy and effective communication strategies to bring parties together to achieve creative resolutions. Jerrol Crouter Learn more about what Drummond Woodsum's team can do for you at : dwmlaw.com | 800.727.1941 » C O N T I N U E D F RO M P R E V I O U S PA G E Dava Davin Justin Lamontagne F I L E P H O T O S / T I M G R E E N WAY

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