2026 Industrial Review Spotlight - Featured Company: The Dunham Group

What projects, initiatives, or types of work have been keeping your team busiest during the first half of 2026? Southern Maine’s industrial vacancy rate continues to climb, reaching 4.77% as of July 1, 2026 – the highest overall vacancy rate we have recorded since 2013. Our Industrial Market Survey now tracks nearly 36.7 million s/f in 1,075 buildings across 17 Southern Maine cities and towns. Of that inventory, approximately 1.75 million s/f is currently available for direct lease.

The vacancy rate has increased by 1.20 percentage points—or approximately 34% – in just the past twelve months. More significantly, the market has moved from record-low vacancy to its highest level in thirteen years. That does not mean the industrial market is collapsing. A 4.77% vacancy rate would still be considered relatively in many markets. But Southern Maine has not operated under “normal” conditions for a long time. 

For most of the past decade, landlords had all the leverage, that’s changing.

What trends or shifts have stood out most to you so far this year within your industry? The sales market remains the bright spot. Demand for industrial properties for purchase remains steady, particularly among owner-users seeking buildings below approximately 30,000 s/f. Inventory available for sale remains extremely limited, and well-located, functional buildings continue to attract strong interest and competitive pricing. In other words, the leasing market has softened materially, but the sales market has not followed the same path. That distinction is important. We have considerably more space available for lease, but very few owners are actively offering their buildings for sale. Until that changes, buyers will continue to face limited options.

What challenges or opportunities have had the biggest impact on your business during the first half of 2026? There is no doubt that leasing demand has slowed. Macroeconomic uncertainties like the war in Iran, oil prices, the upcoming elections, etc. have absolutely given industrial business owners pause. While smaller, functional spaces continue to generate interest, particularly when they offer loading, clear height, parking and competitive pricing, the larger standalone buildings and spaces with functional limitations are taking considerably longer to lease. Tenants now have choices and are using that leverage to negotiate rates, improvements, free rent and other concessions. 

Asking lease rates have not yet experienced a dramatic correction. Based on currently marketed availabilities with published pricing, rates generally remain in the same range as last year, although the quality, condition and location of available inventory vary widely.

As we look ahead to the second half of the year, what are you watching most closely? As vacancies linger, I expect some property owners to consider selling. Sales demand and pricing remains high so some owners may decide the time is ripe to capitalize on the decade long run of appreciation. The best opportunities will be for owner/user industrial occupants who can fill these vacancies with their own business. Banks remain bullish on this market and lending conditions are strong for owner/users in particular.

Headquarters: Portland, Maine
Main Services: Brokerage, Consulting
Year Founded: 1976
States Served: Maine
www.dunhamgroup.com