Harnden Commercial Brokers 2015 Mid-Year Newsletter
Harnden Commercial Brokers The Greater Portland Office Market experienced mixed results in the first half of 2015. Lease transaction volume was up 4.5% from mid-2014, vacancy was up .70% to 10.14% from year-end 2014 and the market suffered a slight negative absorption of 7,103 SF, a significant improvement from a negative absorption of 42,357 SF as of year-end 2014. The Downtown Sector posted the largest rise in vacancy up over a full point to 11.53%. Tenant shuffling in both Class A & B buildings contributed to these results. Significant Downtown transactions include Industrium, LLC (Formerly Kemp Godlberg), renewing their lease of 14,494 SF at 280 Fore Street. Bank of America vacated 24,000 +/- SF at 100 Middle Street and combined offices with Merrill Lynch, who relocated from 12,500 SF at 350 Fore Street. These consolidated offices will occupy 25,000 +/- SF at One Monument Square. Blue Tarp Financial made the move to Class A space vacating 15,000+/- SF at 443 Congress Street and expanded to 23,000+/- SF at One Monument Square. In addition the Maine Wharf at 68 Commercial Street is now fully occupied with Joe Gold Entertainment occupying the top two floors, a total of 15,438 SF.
Mid-Year Newsletter 2015
1 Monument Square
280 Fore Street
The 24,000 +/- SF vacated by Bank Of America at 100 Middle Street and the 55,000 SF vacated by DHHS (by relocating to the new building at 51 Jetport Blvd) are the two major vacancies Downtown. With several tenants over 20,000 SF currently looking for space, we feel a significant amount of that space will be committed by year-end. The Suburban market experienced positive absorption of 58,387 SF or 1.08% primarily due to Sun Life Financial expanding into Maine and occupying 38,390 SF at 6 Ashley Drive in Scarborough and WEX committing to 58,902 SF at 123 Darling Avenue. In addition the Department of Labor and the Department of Health and Human Services now fully occupy a brand new 75,000 SF building at 51 Jetport Blvd in South Portland. This positive activity offset the right sizing of DRMS from 134,000 SF at Riverfront Plaza, Westbrook to 75,000 SF at 300 Southborough and Pierce Furniture giving up 26,850 SF at 600 Roundwood Drive.
6 Ashley
300 Southborough Drive
51 Jetport Boulevard
Harnden Commercial Brokers
Mid-Year Newsletter 2015
Sales Outlook The low interest rate environment continues to keep cap rates in the 8%-8.5% range for high quality investment properties in Greater Portland. Buyers remain plentiful in all sectors of the commercial market, including owner/users and investors. Evidenced by the historic sale of One and Two Portland Square for $66,000,000 and 100 Middle Street for $35,300,000 which both closed in the first half of 2015. A quick look at the volume of sale transactions year over year, shows us that the number of office deals alone in the Greater Portland has tripled in the first half of 2015. Indications are that this sale activity will continue into the second half of 2015, as investors (both local and foreign) and owner/users are actively seeking deals. *Greater Portland- Portland, South Portland, Falmouth, Westbrook, Scarborough
HARNDEN COMMERCIAL BROKERS
Jim Harnden President 207-650-3677 [email protected]
Sam LeGeyt Associate 860-866-8345 [email protected]
106 Lafayette Street Yarmouth, ME | 207-773-8300 | www.harndencommercialbrokers.com
Mid-Year Newsletter 2015
1 Monument Square
280 Fore Street
The 24,000 +/- SF vacated by Bank Of America at 100 Middle Street and the 55,000 SF vacated by DHHS (by relocating to the new building at 51 Jetport Blvd) are the two major vacancies Downtown. With several tenants over 20,000 SF currently looking for space, we feel a significant amount of that space will be committed by year-end. The Suburban market experienced positive absorption of 58,387 SF or 1.08% primarily due to Sun Life Financial expanding into Maine and occupying 38,390 SF at 6 Ashley Drive in Scarborough and WEX committing to 58,902 SF at 123 Darling Avenue. In addition the Department of Labor and the Department of Health and Human Services now fully occupy a brand new 75,000 SF building at 51 Jetport Blvd in South Portland. This positive activity offset the right sizing of DRMS from 134,000 SF at Riverfront Plaza, Westbrook to 75,000 SF at 300 Southborough and Pierce Furniture giving up 26,850 SF at 600 Roundwood Drive.
6 Ashley
300 Southborough Drive
51 Jetport Boulevard
Harnden Commercial Brokers
Mid-Year Newsletter 2015
Sales Outlook The low interest rate environment continues to keep cap rates in the 8%-8.5% range for high quality investment properties in Greater Portland. Buyers remain plentiful in all sectors of the commercial market, including owner/users and investors. Evidenced by the historic sale of One and Two Portland Square for $66,000,000 and 100 Middle Street for $35,300,000 which both closed in the first half of 2015. A quick look at the volume of sale transactions year over year, shows us that the number of office deals alone in the Greater Portland has tripled in the first half of 2015. Indications are that this sale activity will continue into the second half of 2015, as investors (both local and foreign) and owner/users are actively seeking deals. *Greater Portland- Portland, South Portland, Falmouth, Westbrook, Scarborough
HARNDEN COMMERCIAL BROKERS
Jim Harnden President 207-650-3677 [email protected]
Sam LeGeyt Associate 860-866-8345 [email protected]
106 Lafayette Street Yarmouth, ME | 207-773-8300 | www.harndencommercialbrokers.com
