The economy in southern Maine, where Chip Newell is building, is affected by the national one. But he lauded Portland’s growing reputation as restaurant and tourism destination.
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Chip Newell is in the process of overseeing development of NewHeight Group’s third condo building in Portland.
The new venture, Verdante at Lincoln Park, has half of the 30 units under contract and will open late this year.
Newell was wary of last year’s predictions of a coming recession. While that recession didn’t arrive in in 2019, he’s still cautiously optimistic when he looks to 2020. The southern Maine economy, where he is doing business, is affected by the national economy, but he also lauded Portland’s growing reputation as restaurant and tourism destination.
“[Last year] exceeded all projections on stock market appreciation, unemployment and interest rate stability. And the residential real estate market in Portland has continued to benefit from these national trends,” says Newell.
“But the strong residential market in greater Portland has more than the national economy to thank. Our city has found itself on numerous lists of ‘bests’ and the strong food-based tourism market continues to introduce new people to its broad appeal.”
Looking ahead, Newell leans toward the year being one of continued economic growth, not contraction.
“At the moment, I tend to agree with most national projections that 2020 will be a year of growth, rather than the start of a recession,” he says. “While it is worrisome that a year ago many were predicting a recession and were proven dramatically wrong, the fundamentals — job growth, inflation stability, consumer sentiment and interest rates — give confidence that the inevitable slowdown will not occur this year.”
So far, NewHeight Group has focused on high-end condos.
This year, Newell says, it plans to branch into a “broad mix” of residential and commercial offerings, including rental housing.
“Irrespective of the future economy, we know that there will be continued demand for affordable housing for our neighbors most in need, as well as continued demand for ‘workforce’ rental units for those making 80% to 120% of area median income,” he says.
“We feel confident about the prospects of developments that mix those uses with higher end for-sale residential products on the peninsula, and we plan to add support services desired by the residents and neighbors alike.”
