Portland's dynamic restaurant scene is entering a period of significant transition, with dozens of commercial spaces, including several high-profile and historic locations, now available for sale or lease. This wave of vacancies presents both a challenge and a unique opportunity for entrepreneurs looking to make their mark on one of New England's most celebrated food cities.
From the bustling Old Port to the developing Bayside neighborhood, the available properties range from small, turnkey cafes to large, iconic venues that once housed some of the city's most beloved eateries. The market shift reflects the ongoing evolution of the hospitality industry, creating a new landscape for the next generation of restaurateurs.
Key Takeaways
- A large number of restaurant-ready properties are currently available across Portland and surrounding areas.
- Iconic former restaurant locations, including Grace and Henry's Public House, are on the market.
- Opportunities range from small cafes to large-scale venues with fully equipped kitchens.
- Lease rates vary widely, with prime Old Port locations commanding the highest prices, some reaching up to $70 per square foot.
- The Public Market House is actively seeking new food businesses for an incubator-style food hall.
Old Port Sees Major Vacancies
The historic Old Port, a major hub for dining and tourism, is at the center of this market shift. Several landmark properties are now seeking new tenants, signaling a potential changing of the guard in the city's most visible district.
One of the most notable listings is the former Grace restaurant at 15 Chestnut Street. The 14,358-square-foot converted church, known for its dramatic architecture and circular bar, is listed for sale at $2,175,000 and is also scheduled for auction with a starting bid of $500,000. This presents a rare chance to acquire a truly one-of-a-kind venue.
Nearby, the 7,500-square-foot building that was home to Henry’s Public House at 373 Fore Street is available for lease. Other significant spaces include the former Thistle and Grouse on Cotton Street, a 4,606-square-foot space with a recently renovated dining room and kitchen, and a 1,548-square-foot location at 425 Fore Street that was built out as a restaurant but never opened, now listed at a premium rate of $70 per square foot (MG).
Understanding Lease Types
Navigating commercial leases can be complex. Here's a quick guide:
- NNN (Triple Net): The tenant pays a base rent plus a share of the property's operating expenses, such as taxes, insurance, and maintenance.
- MG (Modified Gross): A middle ground where the base rent includes some of the operating expenses, but the tenant may still be responsible for others, like utilities.
- Gross: The simplest form, where the tenant pays a flat rental rate, and the landlord covers all property expenses.
Opportunities Beyond the Waterfront
The availability of restaurant spaces extends well beyond the cobblestone streets of the Old Port. Neighborhoods across the peninsula and into the city's outer districts are also seeing a significant number of openings.
Arts District and Bayside
In the Arts District, the former dining room of the celebrated Five Fifty-Five at 555 Congress Street is available, offering 1,908 square feet of prime space. A major shift is also coming to 540 Congress Street, where the 27,800-square-foot building currently occupied by Reny's will be available in the spring after the retailer decided not to renew its lease.
The Bayside and Inner Washington Avenue area, known for its breweries and creative food businesses, also has several key openings. A 4,424-square-foot turnkey restaurant in the former Coals building at 114 Preble Street comes with valuable onsite parking and outdoor seating. Additionally, the former Maine Craft Distilling location at 123 Washington Ave offers a massive 10,894-square-foot space complete with a restaurant and outdoor area.
A Hub for Food Entrepreneurs
A unique opportunity exists at the Public Market House in Monument Square. The building's owner is seeking tenants to develop the 8,064-square-foot space into an incubator for new food businesses. With existing kitchen infrastructure and anchor tenants like Yardie Ting, the location is positioned to become a launchpad for emerging culinary talent at an accessible lease rate of $12 per square foot (NNN).
Turnkey Operations and Established Businesses for Sale
For those looking to step into an established operation, several businesses and fully equipped properties are also on the market. This can significantly reduce the startup costs and timelines associated with opening a new restaurant.
Navis Cafe, a 36-seat establishment located in the WEX building along the popular Eastern Promenade Trail, is for sale for $1,299,000. On Forest Avenue, the Riverton Station Pizza, Bar & Grill is available for $1,700,000, a price that includes the business and the property it sits on.
"Finding the right spot is one of the crucial early challenges in launching a new business. This current market, while daunting for some, offers a breadth of options that we haven't seen in years."
Beyond Portland, other well-known Maine eateries are also available. The iconic Fat Boy Drive-In in Brunswick, a local institution since 1955, is for sale for $775,000. In Arundel, the owners of Bandaloop are selling their restaurant property after 20 years in business for $2,100,000.
A Market of Diverse Options
The current real estate landscape in and around Portland offers a wide spectrum of possibilities for prospective restaurant owners. The options cater to nearly every concept and budget.
- Small Cafes: A 350 sq ft cafe space in an Old Port office building is available for just $850/month (Gross).
- Mid-Sized Restaurants: The 2,750 sq ft former Thai Esaan/Back Bay Grill space on Portland Street is listed at a competitive $16/sq ft (MG).
- Large-Scale Venues: Renovations at 503-509 Forest Avenue will soon make over 6,300 sq ft of space available.
- New Construction: New developments in Scarborough and Westbrook are offering retail spaces for lease, with some ready for occupancy as early as spring 2027.
While the number of vacancies may suggest a challenging environment, it also signals a period of renewal. As established names move on, the stage is set for new concepts and ambitious chefs to redefine Portland's celebrated culinary identity.
