Mid Year 2019 Office Market Overview

Through Mid Year 2019 the Downtown and Suburban markets are going in different directions. Downtown’s combined vacancy rate for Class A & B space decreased to 5.50% from 6.09% at Year-End 2018. While the Suburban Class A & B sectors combined vacancy increased from 4.68% at Year-End to 9.32% at Mid-Year. These moves have caused the total overall market vacancy to move from 5.35% at Year-End 2018 to a Mid-Year rate of 7.54%. The Suburban Class A vacancy was the main reason for the overall increase jumping from 3.67% to 13.21%. This is the highest Suburban Class A vacancy since 2009 when it reached 12.85%.

Notable Transactions

  • One Monument Way, Portland (Class B Office Building) – The 45,278 SF building sold in April for $7,250,000 ($159.77 PSF).
  • 312-326 Cumberland Ave, 15-19 Preble and 32-36 Elm Street, Portland (Class B Office/Retail) – This 55,000 SF mixed use office/retail property sold for $12,000,00 ($218.18 PSF).
  • 34 – 41 Hutchins Drive, Portland (Class B Office) – 3-building office complex 52,644 SF sold for $10,600,000 ($201.35 PSF).
  • 75 Washington Avenue, Portland (Class B Office) – 30,000 SF Office Condo, Goodwill Industries of Northern New England sold for $4,600,000 ($153.33 PSF).
  • Sun Life Financial leased 76,785 SF at 58 Fore Street (New Construction – Class A Building).
  • Certify leased 9,670 SF at 14-26 York Street, Portland (Class A Building).
  • Stone Coast Fund Services leased 32,176 SF at Two Portland Square, Portland (Class A Building).
  • WEX began construction on 80,000 SF new building, 100 Fore Street (Class A Building).

Click here for our entire Mid Year 2019 Newsletter