Please do not leave this page until complete. This can take a few moments.
Beer brewers, coffee roasters and medical marijuana companies are taking over more warehouse space in Portland, driving demand and the price per square foot, a speaker at the MEREDA conference said on Jan. 21.
Justin Lamontagne, a commercial broker at NAI The Dunham Group who specializes in industrial space, made his remarks in an early session at the Maine Real Estate & Development Association’s 2016 Annual Real Estate Forecast Conference, which was attended by 800 people at the Holiday Inn by the Bay.
Lamontagne said warehouse space was already at a premium in Portland, with many traditional warehouse users looking to other markets for space. Lamontagne echoed a phrase he has used in the past, citing the city’s “stunning lack of inventory.”
“We are full. We haven’t added supply. We have had no new construction,” he said. Even if a larger out-of-state producer was interested in moving into the market, there would not be enough industrial space to accommodate it, he added.
That’s the bad news.
The good news is that some fast-growing companies — including Rising Tide Brewing (one of Maine’s fastest growing companies), Foundation Brewing Co. and Bissell Brothers — are creating additional demand for the space. Add to that coffee roasters and rapidly expanding medical marijuana concerns, and the demand for small- to mid-sized spaces is growing.
The price per square foot of warehouse space is going up, but Lamontagne is also seeing bidding wars.
Echoing Gordon Gecko, he added: “Cash flow is king.”
In at least one case, Class A space traded at $80 a square foot.
“That’s the highest I’ve seen in my career,” Lamontagne said.
Industrial users are looking to Saco, Biddeford, Lewiston-Auburn and other markets for space.
“Manufacturing is up,” he said, adding: “You need places to make it, store it, ship it.”
Read more
Portland lager recognized as one of America's best
High housing demand seen in Portland area
Will rents surge in Saco thanks to a medical marijuana ordinance?
The Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Learn MoreWork for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Learn MoreFew people are adequately prepared for all the tasks involved in planning and providing care for aging family members. SeniorSmart provides an essential road map for navigating the process. This resource guide explores the myriad of care options and offers essential information on topics ranging from self-care to legal and financial preparedness.
Learn moreThe Giving Guide helps nonprofits have the opportunity to showcase and differentiate their organizations so that businesses better understand how they can contribute to a nonprofit’s mission and work.
Work for ME is a workforce development tool to help Maine’s employers target Maine’s emerging workforce. Work for ME highlights each industry, its impact on Maine’s economy, the jobs available to entry-level workers, the training and education needed to get a career started.
Few people are adequately prepared for all the tasks involved in planning and providing care for aging family members. SeniorSmart provides an essential road map for navigating the process. This resource guide explores the myriad of care options and offers essential information on topics ranging from self-care to legal and financial preparedness.
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
Comments