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Word on the street: Igloo dining spheres, retail reuses top Maine development trends in 2025
PHOTO / KATHLEEN PIERCE
Dining igloos like these structures outside the Thames Landing restaurant in Portland are “having a moment,” says Kathleen Pierce of HospitalityMaine.
This year promises to be a busy and varied one for commercial development in Maine. To find out what’s trending across the state in 2025, we checked in with city officials, real estate professionals and others in the know. Here are their reports, in their words.
Igloos are here to stay: Kathleen Pierce, HospitalityMaine membership and communications director
Out of all the COVID-era inventions, igloos persist and are having a moment. Recently, the Cambria Hotel Portland added several of these hemispherical cabanas for an exclusive dining experience. Across town, the Portland Harbor Hotel showcases these shiny dining domes. What’s happening here? Sample glamping. No huskies required. Cozy, festive, private and romantic, an igloo experience fits both tourist and townie. For the host, it activates typically off-limits outdoor space in the winter. And for venturesome night-lifers, it’s a good way to chill.
Property conversions: Justin Lamontagne, Dunham Group partner and designated broker
Justin Lamontagne
The long-anticipated trend of converting underutilized office and retail spaces into mixed-use and light industrial facilities is now a reality. In 2024, I represented the Cavalry Church in their challenging search for 10,000 to 15,000 square feet of congregational space. We successfully repurposed a long-vacant call center in Westbrook, and the church is now open and thriving.
In South Portland, the owners of Jetport Plaza have committed to transforming 20,000 square feet of the former Burlington Coat Factory retail space. We are marketing the rear portion, equipped with loading docks, as warehousing and distribution space, while the front-facing area will remain retail, reconfigured into smaller, more leasable units.
These projects highlight excellent opportunities for landlords to diversify their portfolios and breathe new life into tired, vacant commercial properties.
Office sector opportunities: Jon Rizzo, Boulos Co. partner and broker
Jon Rizzo
With increased office tenant activity, opportunities in the office sector seem promising. In Greater Portland, we saw office buildings converted to housing, reflecting a broader trend but with a local twist, but traditional office leasing may have started to find its ‘new normal’ as businesses embrace hybrid models.
Midcoast growth prospects: Roy Donnelly, Boulos Co. associate broker
Roy Donnelly
Maine’s midcoast region has long been a residential hub, but there have been changing tides for commercial property post-COVID … As 2025 begins, the region’s commercial real estate market may face bid-ask discrepancies as expectations continue to evolve, but its appeal to affluent residents, affordable housing growth and supply-constrained commercial real estate signal sustainable growth ahead.
Hospitality market shift: Marieke Thormann, Fathom Cos. vice president of business development
Hospitality development will continue to
Marieke Thormann
grow across Maine as it remains a pillar of economic development. In addition to the growth, the style of hospitality throughout the state is shifting to support the demand for a more elevated and unique experience. This demand is driving developers to be more creative in not only the design, location and amenities of the properties but also creative in the financing structures to make the developments viable. This shift in the hospitality market ranges from integrating wellness experiences to restoring a castle into an inn to glamping yurts nestled in the woods to urban historic rehabilitation.
Mission-driven workplaces: Lisa Whited, Portland-based author, speaker and consultant
Lisa Whited
In 2025, Maine business leaders will continue to do what they do best: Think independently and stay true to their values. Rather than being swayed by fleeting trends, headlines or outside pressures, they will double down on their organizational vision and mission.
By actively listening to employees and fostering innovation, they will shape workplaces that not only support productivity but also spark creative thinking, nurture intentional connections and celebrate differences as a strength.
Housing progress: Shannon Richards, founder and CEO of Hay Runner and president of the Maine Real Estate & Development Association
Shannon Richards
We’re seeing most new housing developments in Maine built successfully when projects are subsidized. Market-rate housing is not penciling given the regulatory requirements, economic conditions and oppositional neighbors. An example of success, in Brunswick — 21 single-family homes hit the market for pre-sales (subsidized new construction) all reserved within three weeks, with a waitlist. We are making positive steps towards zoning changes that will enable more housing, but more are needed. Ultimately, it’s the cultural shift towards supporting our community housing needs that will bring us the biggest wins in resolving this issue.
New businesses, expansions in Auburn: Jay Brenchick, Auburn economic development director
Commercial and residential development in Auburn is poised for continued growth in 2025. The past few years have seen record numbers of permits issued and permit values, and 2025 is expected to follow this upward trend. Auburn’s downtown is evolving, with the recent opening of Gritty’s Grinds coffee shop and
Jay Brenchick
Nutty Netties Café set to open soon. Great Falls Construction’s restaurant, retail and residential project on the Androscoggin River, is expected to be completed this year, adding even more vibrancy to our downtown area. Business continues to thrive at Lost Valley Ski Area with the addition of a third chairlift. Our manufacturing sector remains robust, highlighted by over $120 million in expansions at Procter & Gamble in recent years, with more potential growth on the horizon. Auburn Manufacturing is also planning a small expansion later this year. On the residential front, development remains strong, with A.R. Building Co. seeking site approval for 180 new residential units off Stetson Road.
With these exciting projects and continued development across sectors, Auburn’s growth is expected to remain strong throughout 2025 and beyond.
New capital city gateway: Keith Luke, Augusta economic development director
RENDERINGS /COURTESY CITY OF AUGUSTA
The former Kmart Plaza in Augusta is being transformed into a mixed-use development called the Capitol Heights Center.
One of Augusta’s most exciting redevelopment projects is Capitol Heights Center, the transformation of the former Kmart Plaza site into a modern, mixed-use development that will bring market-rate housing, a hotel and new commercial space to a key gateway into Augusta. “This project is a strong example of how underutilized commercial properties can be repurposed to address housing needs, boost economic activity and enhance infrastructure.
Keith Luke
Capitol Heights Center aligns with Augusta’s broader economic development and housing priorities, particularly our focus on expanding housing options through infill development and adaptive reuse; revitalizing commercial corridors to support small businesses and create more vibrant spaces; and investing in infrastructure improvements that support long-term growth.
As development opportunities in Greater Portland become increasingly challenging to find, Augusta remains poised to welcome new investment.”
Biddeford building boom: Biddeford Mayor Marty Grohman
Biddeford continues to be a magnet for innovative, community-driven development. This year, we’re seeing exciting trends like mixed-use projects that combine housing, retail and recreation, such as the Marble Block redevelopment, a Main Street restoration that is now underway and will include a bowling alley and
Marty Grohman
restaurant with apartments above. Looking ahead, we’re in the early stages of exploring a sustainably minded commercial business park to attract eco-conscious enterprises together with renewable energy development, near our thriving Biddeford Crossing area, which will soon host an L.L.Bean outlet.
We’re also focused on specific opportunities to enhance quality of life and attract businesses. For example, we’re actively seeking a downtown grocery store for our Pearl Street site adjacent to the parking garage. Additionally, along the waterfront at a newly developed site called the Foundry, there is a great opportunity for a large restaurant and concert venue, in a magnificent space adapted from a long-vacant machine shop.
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