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Maine Commercial Real Estate
An Imperfect Market
An Imperfect Market
Multi Family Update by David Caron
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Sales of Multi Family properties are showing some signs of possibly rebounding a bit. As a matter of fact, MREIS statistics show in Cumberland County that there has been about a 10% increase in the number of sales through October 31 of this year compared to the same period last year.
This is in large part due to the fact that prices are down quite a bit from where they were at their peak a few years ago, interest rates are very favorable and banks have sold some of the properties they had taken back at bargain prices. These are encouraging signs that Multi Family properties are still moving. In Greater Portland, vacancy rates have crept up a bit to the 7% range. This should hopefully stabilize with no new projects coming on line to speak of. As a reminder to all Residential Landlords, as of 10/31/2009 all units must have a carbon monoxide detector installed. These can either be the hardwired type or plug in type. There are also some changes in the smoke detector regulations which are still out there for clarification. If you have any questions on the compliance of your units, contact the State Fire Marshall's office at 207-626-3873. |
Positive Signs for Old Port Retail by Peter Harrington
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It had been many years since there was a retail vacancy on Lower Exchange Street in the summer. This past summer there were several. Add to that all the other retail spaces which are on the market in the rest of the Old Port and a negative trend was clearly visible.
Much has been said and written about the health of the consumer and the decline in retail sales and leasing on a national level. I believed it would take until at least spring for many of these spaces to lease. However, in the last few months many of the spaces have leased.
I'm not saying that there won't be new vacancies to come, or that all of the Old Port vacancies are taken, but there are definitely positive signs in the Old Port retail market. |
To Tweet or Not to Tweet
Social Networking for business use. Is it part of your overall marketing campaign? More and more companies are using LinkedIn, Facebook and Twitter as a marketing strategy. But is it a good idea for your company?
A lot of Maine Commercial Real Estate companies and their brokers are on LinkedIn, a few are now on Facebook but not a single one on Twitter. Do brokers not Tweet?
Like other marketing strategies Social Networking takes time and an ongoing commitment. Unlike many other strategies it does not take bottomless financial resources. This levels the playing field, so to speak, for businesses of all sizes.
However lines of communication run both ways and unless you are ready to hear back from your contacts, good and bad, your company may not be ready for this type of marketing strategy.
Social Networking is experiencing a huge growth in business use and can be successful if utilized as part of an overall marketing campaign. Whether you Tweet or not, I suppose that's up to you.
A lot of Maine Commercial Real Estate companies and their brokers are on LinkedIn, a few are now on Facebook but not a single one on Twitter. Do brokers not Tweet?
Like other marketing strategies Social Networking takes time and an ongoing commitment. Unlike many other strategies it does not take bottomless financial resources. This levels the playing field, so to speak, for businesses of all sizes.
However lines of communication run both ways and unless you are ready to hear back from your contacts, good and bad, your company may not be ready for this type of marketing strategy.
Social Networking is experiencing a huge growth in business use and can be successful if utilized as part of an overall marketing campaign. Whether you Tweet or not, I suppose that's up to you.
Retail Review- Watching The Pendulum Swing by Mark Malone
The old saying that "one person's loss is another person's gain" is an apt summary of the retail real estate market for 2009.
Retail property owners in Greater Portland have suffered their worst year since the terrorist attacks of September 11, 2001. Back then, the vacancy rate jumped from 3.7% in 2001 to 10.2% in 2002. In 2009, we have seen the retail vacancy rate go from 6.04% to a decade-high vacancy rate of 10.8%.
Retail tenants, on the other hand, have experienced a year with flat sales but rising profits. Profits received a helping hand from declining lease rates. The average asking rate for retail space is currently at $13.50 per sf. - a 30% drop from the peak rate average of $19.30 per sf. in 2006-07. Also, the combination of increased vacancies and lower rates has offered many savvy retailers the opportunity to improve their locations while lowering their rent.
A few examples of the upgrading are:
Clearly, 2009 has been an opportune time for Retailers looking to position themselves for the future. and, a disappointing time for retail property owners, who experienced rising vacancies and lower lease rates. As we get a sneak peak at 2010, however, with the larger vacancies beginning to fill, it appears this trend is nearing an end and the pendulum should begin to swing the other way by the second half of 2010.
Retail property owners in Greater Portland have suffered their worst year since the terrorist attacks of September 11, 2001. Back then, the vacancy rate jumped from 3.7% in 2001 to 10.2% in 2002. In 2009, we have seen the retail vacancy rate go from 6.04% to a decade-high vacancy rate of 10.8%.
Retail tenants, on the other hand, have experienced a year with flat sales but rising profits. Profits received a helping hand from declining lease rates. The average asking rate for retail space is currently at $13.50 per sf. - a 30% drop from the peak rate average of $19.30 per sf. in 2006-07. Also, the combination of increased vacancies and lower rates has offered many savvy retailers the opportunity to improve their locations while lowering their rent.
A few examples of the upgrading are:
- Lamey Wellehan went into a coveted end-cap space at Payne Road Plaza
- Marden's is preparing to take over the old Scarborough Wal-Mart
- Goodwill will be occupying the former Circuit City near the Maine Mall in the first quarter of 2010
Clearly, 2009 has been an opportune time for Retailers looking to position themselves for the future. and, a disappointing time for retail property owners, who experienced rising vacancies and lower lease rates. As we get a sneak peak at 2010, however, with the larger vacancies beginning to fill, it appears this trend is nearing an end and the pendulum should begin to swing the other way by the second half of 2010.
Click here to read the 2010 Retail Report in full.
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Landlords: Protect Your Property
Landlords that own apartment buildings and hotels need to protect their property and limit liability when it comes to bedbug infestations.
Reports show escalating rates of bed bug infestation due to increased travel, immigration and insecticide resistance.
Lawsuits against landords are on the rise and the burden remains with the landlord to provide proof that the property has been inspected and eradication efforts have been made. Local landlords now have a new tool available to protect their property from these infestations.
Certified Bedbug Dogs of New England, Inc. brings landlords the services needed to quickly detect and pinpoint bedbug infestation with their specially-trained K-9 "Bella".
Bella and handler/owner Sarah Foster will do a thorough sweep of your property to pinpoint the specific location of the scent of any LIVE bedbug eggs, nymphs, or adults. Bella can sweep a typical hotel room in just 3 to 4 minutes and is very accurate. While no building bedbug inspection can be 100% accurate, the use of a trained, canine bedbug-inspection team is the most accurate means of detection currently available.
To learn more about Certified Bedbug Dogs of New England, Inc visit their website at www.bedbug-dogs.com.
IPhone apps for Real Estate
Yes there are IPhone apps that actually help you with getting business done. Here are my top 5 for Real Estate. None of these are free but as the saying goes...you get what you pay for.
- zipForm by zipLogix @ $9.99. Offers all the online capabilities of zipForm online. Access forms, update, print and email all from your IPhone. Who needs an office?
- PDF Reader Pro Edition by ITech Development Systems @ $1.99. Every IPhone user should have this app. Read, download, upload, manage and search PDF's. You can also bookmark and jump pages. 5 stars from every customer review.
- Date Wheel date calculator by Creative Algorithms @ $1.99. Worth every penny to calculate due dates and deadlines. Better than the wheel.
- 10bII business calculator by R.L.M. Software @ $4.99. Identical to the HP model and looks just like the real thing. Does all the complex financial and business calculations like you are used to and allows you to download to your pc too.
- HP 12c Financial Calculator by Hewlett Packard @ $14.99. For all of you old school brokers out there that can't give it up. It works in landscape mode and has a quick reference to common functions built in.
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45 Western Avenue, South Portland
Jewel of India
A new indian restaurant will open at the former location
of Mulberry Cottage on Western Avenue in South Portland. According to Dale Holman, who represented the tenant, the restaurant is expected to open in early fall and will hold 80 seats.
A new indian restaurant will open at the former location
of Mulberry Cottage on Western Avenue in South Portland. According to Dale Holman, who represented the tenant, the restaurant is expected to open in early fall and will hold 80 seats.
This is the second restaurant for Jewel of India. The original restaurant is at 26 Alfred Street in Biddeford and offers exotic and authentic Indian cuisine with delicious vegetarian dishes, chicken, lamb, and fish dishes, appetizers, breads, and desserts.
Visit their website at www.thejewelofindia.com.
Boston Convention & Exhibition Center
Boston, Massachusettes July 10, 2009
Joe Malone, Mark Malone and Dan Catlin attended the International Council of Shopping Centers' (www.icsc.org) 2009 ICSC New England Idea Exchange held in Boston.
The conference provides a good opportunity to conduct business with retailers, brokers, developers, owners, lenders, suppliers, municipalities and economic development agencies from across the region.
The keynote presentation given by Jonathan Kraft, President/COO of the Kraft Group, addressed several topics of interest in the retail sector. The Idea Exchange had an expanded session of the "Retailers' Runway" for New England that included retailers such as Aldi, DollarTree, Price Chopper Supermarket, Panda Restaurant Group, Boloco, Aveda, and Great Clips to name a few.
Joe, Mark, and Dan attended panel sessions led by ICSC committee members that focused on retail strategies/opportunities over the next five years and also participated in networking and deal making groups.
Joe Malone, Mark Malone and Dan Catlin attended the International Council of Shopping Centers' (www.icsc.org) 2009 ICSC New England Idea Exchange held in Boston.
The conference provides a good opportunity to conduct business with retailers, brokers, developers, owners, lenders, suppliers, municipalities and economic development agencies from across the region.
The keynote presentation given by Jonathan Kraft, President/COO of the Kraft Group, addressed several topics of interest in the retail sector. The Idea Exchange had an expanded session of the "Retailers' Runway" for New England that included retailers such as Aldi, DollarTree, Price Chopper Supermarket, Panda Restaurant Group, Boloco, Aveda, and Great Clips to name a few.
Joe, Mark, and Dan attended panel sessions led by ICSC committee members that focused on retail strategies/opportunities over the next five years and also participated in networking and deal making groups.
NECPE on Facebook
New England Commercial Property Exchange is now on Facebook. Seems like Facebook is finally making traction in Commercial Real Estate. A search for Commercial Real Estate pages on Facebook turns up over 500 results. Locally there are several brokerage companies and quite a few individuals that now have pages.
For tips on Small Business use of Social Media including Facebook. Read Social Media 101: How to Avoid Alienating Your Customers.
Local Investor Group Purchases 1-3 Canal Plaza
One of Portland's best known addresses for business, Canal Plaza, has been acquired by affiliates of local investor group East Brown Cow Holdings. Joe Malone represented the group in its purchase of One Canal (10-story office building), Two Canal (4-story office building) and Three Canal (6-story office building) with associated surface parking lots. The acquisition also included the adjacent Fore Street Garage, a 492-car garage with retail space on its ground level. Total square footage is 384,000± on approximatley 3.5 acres.
"We are very excited about the potential to do more here and believe the return to local ownership is a big plus for Canal Plaza. It will allow us to be more responsive to tenants' needs and to quickly react to market conditions." Joe Malone, Designated Broker of Malone Commercial Brokers
Canal Plaza's campus is widely regarded as the City's most attractive in-town setting.
Some of the area's most prestigious firms located there include:
•Key Bank • Perkins-Thompson • Curtis-Thaxter • Tompkins, Clough, Hirschon & Langer • Marcus Clegg & Mistretta • LeBlanc & Young • the Wishcamper Companies • Atlantic Fund Administration and many others•
The property's central location between the Old Port and Monument Square areas, make its buildings a prominent part of the City's skyline.
Canal Plaza's campus is widely regarded as the City's most attractive in-town setting. Some of the area's most prestigious firms located there include:
•Key Bank • Perkins-Thompson • Curtis-Thaxter • Tompkins, Clough, Hirschon & Langer • Marcus Clegg & Mistretta • LeBlanc & Young • the Wishcamper Companies • Atlantic Fund Administration and many others•
The property's central location between the Old Port and Monument Square areas, make its buildings a prominent part of the City's skyline.
Tim Soley, president of East Brown Cow, indicated that this acquisition marks the company's largest single purchase. East Brown Cow Holdings and its affiliates own more than 900,000 square feet of commercial buildings in Greater Portland.
"East Brown Cow's vision is to energize this city block through the addition of architecturally distinct, pedestrian friendly structures while making significant capital investments into the existing structures in order to achieve an energy-efficient, vibrant, urban core focused on the future of our city." Tim Soley, President of EBC
