Portland Office Market Sees Stronger Demand Alongside Rent Declines

The downtown Portland office market continues its positive momentum, with vacancy rates improving throughout 2024. The vacancy rate decreased by 1.7% year-over-year, closing at 9.4%, marking a strong rebound from mid-2023 challenges. Portland is outperforming the national market, where vacancies increased by 0.7% over the same period.

• Class A office space saw the strongest demand in Portland, Maine, with vacancy dropping 3.2% to 10.7%. Notably, Maine Public Broadcasting Corporation purchased 320 Cumberland Avenue in August 2024, repurposing 53,655 SF as its future headquarters.
• Despite the vacancy decline, average asking rents dropped 5.2% ($1.25 PSF) year-over-year, ending 2024 at $22.79 modified gross.
• Sublease rents fell 9.4% ($2.72 PSF), with Class A subleases driving the decrease due to new below-market listings.

As tenants prioritize quality, Portland is seeing continued demand for Class A space, while lower-tier spaces are adjusting to market conditions.

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