How did you get started?

As an intern for The Boulos Company, in 2000. My father and grandfather have been developers in Maine for more than 50 years and were my mentors when I started. In 2005, I founded Cardente Real Estate. We now have six commercial brokers and represent all aspects of the sale and leasing of commercial real estate in Maine. Last year my brother Michael and I started Cardente Property Management, and now manage almost 250,000 square feet. Michael was also with me from the beginning of CRE.

What skills are essential to your job?

You must know your market and understand your clientele’s needs,  especially in this soft economy. Investment transactions require specialized skills in mathematics and financing. Other skills include negotiation strategies, understanding real estate documentation, and being able to cold call. However, if you are not a people person and are unwilling to listen, you won’t make it. You must always put your client first.
(Continued on PDF)

Maine was certainly not immune from the well documented market collapse. All major sectors of the commercial real estate industry were affected. The retail vacancy rate in Greater Portland rose from a modest 6.05 to 10.8%*. The office market, especially in suburban areas, saw significant increases in vacancy as companies began to layoff employees and downsize.

The industrial sector experienced a slashing of lease rates as Landlords fought to retain tenants and attract the few prospective tenants that were available. Overall, the downturn certainly represented the worst collapse for the Maine commercial real estate market since September 11, 2001. (Continued on PDF)

This property comprises three buildings that offer the least expensive office options in Portland. Building C is a 6,400-square-foot, free-standing building available in its entirety for $2.50 per square foot Modified Gross. Unit A-2 in Building A consists of 4,950 square feet of high-quality office space, available for $5.50 per square foot Modified Gross. Both deals are available for tenants who sign five-year deals with annual increases. The property includes on-site free parking and is convenient to I-95 and all locations in Greater Portland. Additionally, smaller office units between 1,500 and 2,200 square feet are available at very competitive rates.

On February 13, President Bush signed into law the Economic Stimulus Act. While most of the attention is focused on the dispersal of rebate checks to taxpayers, there are also a couple of significant tax-saving provisions geared toward landlords, developers, business owners, and tenants.

Our overview will be on the provision called bonus depreciation.

Bonus depreciation was first introduced following September 11, 2001, but the policy expired at the end of 2004. It was reintroduced with the Economic Stimulus Act of 2008 to both encourage new construction and the purchase of depreciable assets.

For landlords, developers, business owners, and tenants the provision allows for a 50 percent write-off of qualified leasehold improvements in 2008. This is a drastic change from the 2.5 percent per year allowed since 2006.

The idea is to encourage improvement to existing non-residential properties that are more than three years old. For example, renovation of a Class B office building into a more-sought-after Class A building to meet the requirements of a prospective tenant. (Continued on PDF)

Escalating land prices and skyrocketing construction costs have contributed to a real estate market that has developers pressing hard to find profitable projects.

We all know the cost of construction has increased significantly recently, but land prices are all but pricing developers and owner/users alike out of the market, and at the very least, making quality new developments scarce.

For developer, picture this scenario: A major national retailer or developer builds a regional shopping center anchored by multiple big-box stores and several baby-box stores. Throw in some national restaurant chains and banks, and suddenly local land prices spike upward.

Let’s say it costs $250 per square foot to buy land and build a quality small retail center in this neighborhood. To be adequately profitable, a developer will look for $25-$30 per square foot NNN in lease rates. If tenants in the market are willing to pay only $15-$20 per square foot NNN, the project will stall.

Stalled projects have been occurring more often in Maine, as a reality of high land and construction costs converges with the reality of tenant budgets. (Continued on PDF)