Photo / Courtesy The Boulos Co.
Roy Donnelly
Updated: February 24, 2025
Midcoast commercial leases signed fell by roughly one-third in 2024
In 2023, Maine’s midcoast region grew as a residential market following the pandemic’s continued effect on relocation trends and remote work.
By 2024, the region’s commercial leasing market felt the effects of that change more than ever, according to a midcoast market update for Q1 2025, by Roy Donnelly, an associate broker with the Boulos Co.
“Last year the total square footage and transaction count for new leases signed fell by roughly one-third,” he wrote.
The midcoast region roughly runs from Sagadahoc County to Waldo County and is home to just under 160,000 people, he said.
By contrast, Cumberland County has a population of over 300,000 and York County’s population is around 220,000.
The midcoast region’s relatively smaller populace coupled with the distance from I-95 “means the stretch from Bath to Belfast is traditionally a residential destination for transplants rather than a commercial real estate powerhouse,” Donnelly said.
The region historically attracts and retains smaller, local tenants; 2024 was no exception, he continued.
“Looking ahead, the midcoast’s current market dynamics will continue to present challenges for larger industrial and office users,” he wrote. “However, there are opportunities for smaller businesses to find niches in towns.
For commercial sales, 2024 showed an increase in volume, driven by a few larger transactions, and deal count.
By contrast, he continued, multifamily sales slowed as interest rates rose and rent inflation cooled. Residential sales remained relatively steady year-over-year.
To read the full report, click here.
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