Photo / Renee Cordes
From left, David Hulit of Port 51 lending, Andrew Silsby of Kennebec Savings Bank, Steve deCastro of Maine Community Bank and Kim Twitchell of NBT Bank.
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MEREDA 2025: A roundup of industry reports from the forecast conference
Photo / Renee Cordes
Shannon Richards, MEREDA's board president, welcomes attendees to Thursday's forecast conference.
By Peter Van Allen, Alexis Wells, Tina Fischer, Renee Cordes
The Maine Real Estate & Development Association's annual forecast conference attracted more than 900 real estate professionals on Thursday.
The Portland event, which offers a key barometer for the state of Maine's real estate industry, included an exhibitor showcase, an economic overview, a keynote from Chris Mallett from Northeastern University's Roux Institute, networking and nine breakout sessions covering industry segments.
Shelly R. Clark, MEREDA's executive director, estimated there were 900 to 950 people in attendance, at the Holiday Inn by the Bay in Portland.
Here are some takeaways from the breakout sessions.
Hospitality
Nate DeLois, president and CFO of Uncommon Hospitality, said that Portland hotels are 95% occupied in the summer and predicted that hotel demand will continue to increase in the next couple of years with more lifestyle and boutique hotels opening in Maine’s largest city. “These will be the type of hotels that will be featured in travel magazines, the New York Times and Vogue,” he said.
Industrial market
There’s still a lack of supply in the Portland-area industrial market, where the vacancy rate was just under 2% last year, according to data collected by the Dunham Group. In the Lewiston-Auburn-Gray market, the vacancy rate for industrial buildings was 4.02% last year. Statewide, the vacancy rate was 2.49%. One panelist, developer Josh Benthien of Northland Enterprises, said this year we could see more space open up as cannabis and craft beer producers shed excess space. It’s unclear what kind of effect federal tariffs will have on manufacturers and others needing industrial space.
Office market
Portland's office market is still feeling the effects of the pandemic, with many conversions from office to residential, medical industrial and higher education. Those will likely continue. Nate Stevens from the Boulos Co. said that in 2024, a total of 500,000 square feet was removed in the downtown office market, all with conversions. Vacancy rates have eased down a bit from last year to just under 6% in Portland, though in the suburbs rates are close to 20%, and 30% in the Maine Mall area.
Retail
Declaring a “rebirth in physical stores,” Nick Margitza, senior director of leasing at WS Development, said that more people want to shop in stores versus online. Taryn Trefethen, with the Maine Mall in South Portland, agreed. In 2024, she saw that sales were up but people were being smart about shopping. “People are doing their research, finding sales and using coupons,” said Trefethen. “This comes from not knowing where the economy is going.” Trefethen also said that Black Friday is “taking a shift,” with retailers spreading out sales more, starting in October.
Financing trends
Maine Community Bank CEO Steve deCastro expects an increase in bank mergers and acquisitions in New England but less so in Maine due to the high number of mutual banks. Andrew Silsby, his counterpart at Kennebec Savings Bank, sees business investment slowing down in the first half but picking up again in the second half; he also expects interest rates to remain unchanged for most of this year. David Hulit of Port 51 Lending – a non-bank lender of government-backed loans to small businesses — said that government guaranteed lending will be volatile. He cited factors from funding freezes and the new U.S. Department of Government Efficiency, or DOGE, influencing the way small businesses access capital.
Multifamily housing
Brit Vitalius of Vitalius Real Estate Group said the multifamily housing market sent "mixed signals" last year. Prices settled after several years of gains. Higher interest rates and the slowing of growth of rental rates were also a factor. The median sales price for multifamily properties in Portland was $822,500 last year, up a modest 2% from a year earlier. Yet compared to 2019, when the MSP was $500,000, prices are significantly higher. Vitalius said he's concerned about the effect rent-control measures may have in Portland. Parts of the market have stalled, citing in particular sales of 3-unit properties. "Last year we saw properties taken off the market. Listings expired, were withdrawn or cancelled," he said. There are also fewer buyers looking to own and live in multifamily properties, he added.
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