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Updated: 6 hours ago

Portland's downtown office market sees greater vacancy, but also lower rents

By Laurie Schreiber

Colliers, a real estate firm with offices in Maine and New Hampshire, said the downtown Portland office market has been softening compared with last year, with the vacancy rate climbing by 2.3%, ending the second quarter at 12.6%. 

“Flight to quality” is a key trend, with the Class A segment being the only category to post positive absorption in this year’s third quarter, the firm said. 

“As vacancy rises, average asking rents have followed suit, declining by 1% year-over-year (22 cents per square foot), with decreases seen across both direct and sublease space,” according to the report.

‘Reasonable strength’

The midyear update identified market trends and top deals in Maine and New Hampshire.

“As we hit the midyear mark in 2025, the commercial real estate market in northern New England has shown reasonable strength, bucking broader national headwinds,” the report said. “From a tightening industrial sector to a stable office market, New Hampshire and Maine continues to offer opportunity.”

Across both states through the first half of the year, Colliers completed 107 transactions totaling over $68 million across all property types.

Top deal

Colliers’ top deal so far this year was the sale of a 30.61-acre undeveloped site along Stetson Road in Auburn. A.R. Building Co. acquired the land for $1.5 million.

The Seven Fields, Pa.,-based developer plans to build a 160-unit residential community made up of duplexes and quadplexes, marking its second housing project in Auburn.

Mike Cobb of Colliers in Maine represented the seller, Concord General Mutual Insurance Co.

"This project highlights Auburn’s growing role as a residential and business hub in central Maine,” said Cobb. “With the construction moratorium along Stetson Road expiring this August, the timing of the sale allows the developer to hit the ground running.”

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