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W W W. M A I N E B I Z . B I Z 23 J U LY 1 1 , 2 0 1 6 S O U T H E R N M A I N E R E G I O N F O C U S is expected to be completed this fall. Priority Real Estate Group, the commercial real estate investment and development fi rm in Topsham, bought the property from the city to repurpose for a more modern use as an Irving gas station and convenience store, leveraging its prime loca- tion at the foot of the Casco Bay Bridge. ¡ e redevelopment of the Lunt School in Falmouth into offi ce space. ¡ Conversion of Biddeford's Riverview Mill into offi ce, retail and residential space. Still, companies seeking to expand or relocate in Greater Portland may have a long wait. "One of my industrial clients was in the market for almost a year," says Lamontagne. "We were looking for an existing building and were unable to fi nd one. During that time, we explored building new, and he put land under contract with the intention to build. Shortly thereafter, an off -market listing in South Portland became available and I found out about it. We put it under contract within a day or two. So he ended up fi nding an existing building that cost him probably half what it would cost to build new. But it took time, and he was fortunate that opportunity presented itself." Another example of a creative end-user was the Eastpoint Christian Church, on City Line Drive in Portland, which had been searching for a new site for years. e church settled on a former Bob's Discount Furniture and HomeGoods store in South Portland, renovating it at a fraction of the price of new construction. "It's a business thinking outside of the box and going where I'm certain they weren't originally intending to," says Lamontagne. Companies are looking to Portland's suburbs to fi nd space. "Westbrook, Scarborough, South Portland, Saco and Biddeford are all very healthy commer- cially, in large part due to Portland's success," says Lamontagne. "But we're not seeing huge impacts in the midcoast or Lewiston/Auburn area." Still, the Portland area is not seeing an abundance of new construction. Lamontagne cites one example, an industrial building on Warren Avenue. It was leased before it was fi nished. "But new construction is lagging behind," Lamontagne said. "And that's inhibiting businesses from either moving or growing. What I'm telling my clients now is that we have to be patient in the search, fl exible in the requirement and aggressive when the right opportunity presents itself." No new offi ce space in nearly a decade In a newly issued report, CBRE| e Boulos Co. associate Anthony Struzziero has similar observations, noting that, as of June 1, the vacancy rate in Class A offi ce space was 3.41%, compared to 8.8% in 2014. "With vacancy reaching pre-recession levels and almost no new development in nearly a decade, several expanding companies have had to think cre- atively to support their growth," Struzziero writes. He cites Stone Coast Fund Services and Tilson Technology Management among companies that have adapted to the tight market by leasing space in multiple buildings downtown. Downtown Portland hasn't added offi ce space since 2007, he writes. At 16 Middle St., off India Street, Bateman Partners plans a 45,000-square-foot mixed-use building that will include offi ce space. New construction is hampered by long lead times from approvals and permitting to construction and, although many projects are in the conceptual stage, they "will need prolonged confi dence in the market if they are to become fi nancially viable," Struzziero writes. "Without continued growth the city of Portland risks stagnation, which inherently leads to decay." All of this has aff ected the residential market as well. "One percent, approaching zero," says Brit Vitalius, principal at the Vitalius Real Estate Group, about the amount of available residential space in Portland. "It's been like that for a few years." Yet demand is high, says Vitalius. "My thesis is there's a fundamental demographics shift going on in Portland," he says. "Whereas in the past you came into the city and had the white-collar job, then went back to your family in the suburbs, now young people are choosing to stay here and raise families here. ere are baby boomers wanting to retire from Greater Portland into the center of the city. We see that trend consistently. And we're defi nitely on the national radar as a destination. Everyone wants to be in Portland." L aUr i e S C H r e i be r, a w r i te r ba s e d i n B a s s Ha r bo r, c a n b e r e a c h e d a t e D i T o r i a l @ m a i n e b i z . b i z KEEP IT SIMPLE ACA Compliant Plans Retirement Plans Benefits Administration Talk with Norton. 800.777.5244 www.TalkWithNorton.com Specialists in business insurance and employee benefits Securities and advisory services offered through Commonwealth Financial Network ® , Member FINRA / SIPC, a Registered Investment Adviser. Investment advisory services may be offered through Commonwealth Financial Network, a Registered Investment Adviser, and/or Norton Financial Services, a Maine and New Hampshire-Licensed Investment Adviser. Investment advisory services, and TPA services offered by Norton are separate and unrelated to Commonwealth. Fixed Insurance products and services offered through Norton or CES Insurance Agency. 275 U.S. Route One, Cumberland Foreside, ME 04110

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