Looking back on 2024, the real estate market shows both resilience and extraordinary potential for growth. The landscape is evolving, with businesses and communities alike seeking more from the spaces they occupy. As the largest full-service commercial real estate firm in Northern New England, we see this as an opportunity not just to participate in the market, but to lead it – statewide and nationally.
In late September, global professional services network Deloitte released its 2025 commercial real estate outlook survey. After two consecutive years of bad news, 88 percent of global respondents now report they expect their company’s revenues to increase going forward, a substantial shift from the 60 percent who expected further declines last year. Moreover, 60 percent of respondents expect growth to be in excess of 5 percent year over year.
What does this mean for New England? Well, the New England Real Estate Journal argues that local and national data on commercial real estate deal flow paints a promising picture. While the market has shown volatility in 2023 and early 2024, numbers are trending upward and there’s a sense that we are entering a period of increased market stability and steady growth. And with CBRE predicting that the commercial real estate market will benefit from multiple rate cuts in 2025, it’s time to be more than cautiously optimistic. It’s time to be bullish.
Ahead of these predictions, we launched CORE’s new Acquisitions Division offering a wider array of investors the opportunity to enter this dynamic space, and not just in Maine. What’s more, our fully integrated team—covering everything from management and development to brokerage, underwriting, and risk assessment—ensures that we can act quickly and decisively. Particularly impactful when considering another piece from the recent Deloitte survey.
When asked about which asset classes might present the greatest opportunity for real estate owners and investors over the next 12 to 18 months, familiar responses resurfaced this year. Last year’s top response–digital economy properties that include data centers and cell towers—ranked second this year. Logistics and warehousing facilities remained in the top five. Three sectors—industrial and manufacturing, multifamily, and hotel and lodging assets—came in at first, third, and fifth respectively, up from sixth, ninth, and twelfth last year.
Of the 19 million square feet available within 10 miles of Portland, only 131,000 square feet remain open, meaning shovel-ready industrial land sites will prove to be the most successful model. Our fully integrated team – including an expert operations and management division – ensures that we are always nimble and opportunistic, offering our investors and partners the next innovative opportunity in order to deliver competitive yield and fee structures.
By identifying and capitalizing on underutilized properties, we are able to take spaces that don’t initially stand out and turn them into thriving hubs of activity. For example, working with Bangor Bank’s foreclose team, CORE acquired the 24,000 SF Kittery Shopping Center in August for $2.42M. Committed to filling existing vacancies, we are providing tenant buildout assistance with renovations already underway – with attention to sustainability upgrades. Which brings us to a point that can be mulled over.
Staying ahead of the curve is fundamental to who we are as a team. Greening carbon-intensive real estate assets present an opportunity to align investment returns with climate goals. While some investors may rush to sell certain assets to avoid value drops, improving them can lead to higher exit valuations. Again, according to the survey from Deloitte, 61 percent of global respondents expect better returns in the next 12 to 18 months, with nearly half focusing on climate risk management. By implementing sustainability strategies that reduce costs and manage resources effectively, property managers can achieve both environmental impact and financial success.
Carpe diem, all! We’re committed to unlocking the state’s and nation’s full potential, one project at a time.