Home construction to bottom out in 2008

New home construction in Maine will bottom out in 2008 and industrial lease rates will stabilize due to low demand, experts said yesterday at the Maine Real Estate & Development Association’s annual conference.Presenter Charles Colgan, a former state economist and professor at the University of Southern Maine’s Muskie School of Public Service, said new home construction in Maine will continue to fall in 2008, but not nearly as low as in other parts of the country. Meanwhile, lease rates for industrial sites in southern Maine will stay mostly the same, so landlords should try to keep existing tenants if possible, even if that means lowering rent, said Michael Miller of NAI The Dunham Group.

The MEREDA conference, held at Portland’s Holiday Inn by the Bay, included forecasts for the commercial and residential real estate markets in Portland, Lewiston-Auburn and Bangor.