With the continuation of increases in construction costs, the aggressive pricing of commercial land, and the flattened commercial lease rates, developers are finding it more difficult to justify new construction.

All commercial sectors have been affected by the rise in development costs but the retail sector has been less affected than the office and industrial sectors.

This is due in part to the higher achievable lease rates of retail vs. office and industrial. Rough estimates suggest that a Class A office building and a retail complex cost about the same to build ($150- 165 per square foot). However, Class A office lease rates range from $15-20 per square foot NNN.

In 2007, new retail developments included the 520,000-square-foot Shops at Biddeford anchored by Target and Lowe’s; the 454,000-square-foot Augusta Crossing anchored by Lowe’s and Best Buy; and the Gateway Shoppes at Scarborough that will be anchored by a 130,000-square-foot Cabela’s.

Typically, these types of centers acquire big box tenants to support the development and then fill in the remainder of the space with small-to mediumsized retailers. (Continued on PDF)

Cardente Real Estate is pleased to announce that Salt, Inc. has sold their 13,305+/- square foot office/ retail property located in the Old Port at 110 Exchange Street, Portland.

The Salt Institute for Documentary Studies has owned the property since 1999 and is in the process of finalizing their new Portland location. The property was sold for $1,375.000.

This transaction was brokered on behalf of the Seller, Salt, Inc., by Michael Cardente of Cardente Real Estate and on behalf of the Purchaser, The Oneten Company, LLC. by Daren Hebold of RAM Harnden.

Developers, investors and brokers are always trying to anticipate hot markets and areas of potential growth.

As we prepare to ring in the New Year, let’s take a brief look at select areas in Greater Portland poised for significant growth in 2008 and beyond.

In Portland, Whole Foods grabbed people’s attention in the Bayside area, but it was really just the

beginning.

Looking ahead, another large development in Bayside is the 259,000-square-foot, 10-floor office building anchored by InterMed, under construction at 84 Marginal Way and scheduled for completion in 2008.

In South Portland, Mill Creek and the immediate surrounding area are showing signs of revitalization.

Several factors contributed to renewed interest after traffic was diverted to the Casco Bay Bridge: close proximity to downtown Portland, favorable demographics and increased traffic on Broadway and Route 77. (Continued on PDF)

Between 1946 and 1964, about 75 million people were born in the United States – the “baby boom.” In less than two months, millions of these baby boomers will begin to retire, about 16 percent of which own their own business.

Not surprisingly, many business owners are too busy performing the daily operations and don’t have an exit strategy.

For all you business owners out there, PLAN AHEAD! The largest asset you own may very well be your business.

Here are two things to keep in mind while planning your exit strategy. (In another column in the

near future, I’ll address several more.)

First, choose the right people to work with and pick the right time. Good business brokers are ones that aren’t afraid to tell you, “This isn’t the right time for you to sell.” Many businesses need to improve their growth or some other aspect for a few years prior to a sale as selling on an upward trend will gain the owner a greater profit.

Second, determine a realistic price and be willing to hold some paper. (Continued on PDF)

Recently a client asked me to find an industrial building to purchase in Portland, South Portland, Westbrook or Scarborough. Using an online database shared by most commercial real estate brokers in Greater Portland, I searched for industrial buildings ranging from 5,000 square feet to 10,000 square feet.

I was astounded at the results: On September 19, only four properties met these criteria, and one was under contract.

Wondering if this was a symptom of the industrial real estate market in general, I searched for space available for lease that fit the same parameters.

Using the same cities, size range and property type, I found 33 availabilities.

Although many available spaces for lease are in larger buildings with multiple units, the vast difference between sale and lease opportunities is striking. A few factors account for this difference. (Continued on PDF)