MEREDA's 2023 Real Estate Forecast Conference offered a mixed look at the real estate market for the year. Coming off two red-hot years, the real estate forecast becomes a bit more nuanced going into this year.
In his presentation on retail in Greater Portland, Peter Harrington, a partner with Malone Commercial Brokers, offered a bullish industry outlook.
Dismissing concerns over the last year or two about retail being dead, Harington said, “I’m here to tell you … that’s simply not true.”
Out of 6.6 million square feet of retail space in Greater Portland tracked by his firm, close to 280,000 square feet, or 4.23%, is vacant.
Vacancy rates range from zero in Cape Elizabeth (albeit with only 34,735 square feet) to 16.3% in Westbrook, which Harrington attributed to the closure of a Shaw’s Supermarket across from Market Basket, “a tough competitor.”
But he said Westbrook remains strong for retail both downtown and at Rock Row, noting that “it’s all going very well out there.”
Harrington was also upbeat on the Maine Mall, which he said is “morphing into a new retail showcase” in South Portland amid several upcoming openings, including a Lululemon store.
“It’s not Apple,” Harrington said of the athletic apparel retailer, “but it’s almost as good a draw.”
On a more general note, Harrington predicted another strong year for retail but pointed to rising interest rates and consumer sentiment as risk factors.