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Report on vacancy rate: Freeport firms hold their own

A commercial real estate broker agrees, saying the mix of big and little stores will continue to be a draw.

JUSTIN ELLIS

Businesses in Freeport are weathering the harsh economy, according to a new report.

The vacancy rate for retail and office space is 11.5 percent, a minor improvement over 12.8 percent at this time last year, according to the Freeport Economic Development Corp., which planned to submit the report to town councilors Tuesday night.

At a time when many businesses elsewhere are cutting back or closing because of declining profits, the tourism destination appears to be holding steady.

"I think this is pretty good," said Sande Updegraph, executive director of the Freeport Economic Development Corp. "I really think we are the place to be for retail."

The corporation maintains statistics that measure the percentage of vacant retail and office space in Freeport against occupied space.

Over the last year, at least 20 businesses have opened in downtown Freeport, particularly in Freeport Village Station, the 120,000-square-foot complex between Main and Depot streets. The shopping center is home to the Nike Factory Store, Calvin Klein and the Coach Factory store, among others.

Still, the town has seen stores leave, including Bath & Body Works, Zales jewelers and S&K Menswear.

This spring, at least one more retailer, the Brooks Brothers clearance store, is expected to depart, said Updegraph.

Freeport's vacancy rate is slightly higher than Greater Portland's, said Mark Malone of Malone Commercial Brokers, who tracks vacancy rates. He said the Portland area had a 10.8 percent vacancy rate in 2009.

All towns are feeling the effects of the down economy, Malone said. Overall vacancy rates are up from levels that were around 5 percent in the Portland area just a few years ago.

He expects the rates to drop by midyear as businesses see modest improvements. He thinks Freeport, with its mix of large and small retailers, will be fine.

"It's the real deal, what all the power shopping centers try to be," he said. "It's a real downtown with parking and anchored tenants."

Myra Hopkins, executive director of the Freeport Merchants Association, said many retailers are happy with modest gains right now. "I don't know of any business that had a banner year" in 2009, she said. "Some made decisions about what success would look like and made adjustments."

Hopkins said late winter is typically slow in Freeport, so business owners have a chance to plan for the coming summer. It also lets officials and organizations like the merchants association and the economic development corporation lure new business to town.

A new Johnny Rockets, a California-based burger franchise, is expected to open in Freeport this year.

Freeport will continue to be attractive to customers and new businesses, thanks to L.L. Bean and other large retailers, Hopkins said.

"We've got an anchor for town that is open 24 hours a day," she said. "You can't compare that to other locations."

Staff Writer Justin Ellis can be contacted at 791-6380 or at: jellis@pressherald.com