Portland Explores Ways to Fill Long Empty Storefronts in Arts District

Across from the State Theatre, on the busy corner of Congress and High Street, a storefront has been empty for years, its windows covered with brown paper and its doors covered in graffiti. A few blocks away, another corner storefront has been empty for at least two years, its only sign that it was once a chain coffee shop a pair of graying D-shaped doorknobs.

They are among about 10 stores along Congress Street in Portland’s arts district that are sitting empty — a problem that city workers, property owners and area community groups say needs to be addressed.

The city is considering developing rules that could encourage property owners to rent out the spaces, host art exhibitions or set up temporary shops there to add to the charm of the neighborhood.

“When you see units sitting vacant for an extended period of time, it sends a signal that the neighborhood is struggling,” said Cary Tyson, executive director of Portland Downtown.

While the national retail vacancy rate is 5%, and downtown Portland’s vacancy rate is about 3%, according to data provided by the city, the concentration of empty storefronts is more noticeable on Congress Street than in other parts of the city. A recent staff survey found at least 10 empty or boarded-up storefronts in a half-mile stretch between 443 and 600 Congress St.

“The empty storefronts don’t send the right message that this is a vibrant arts district,” said Annie Leahy, executive director of Mechanics Hall on Congress Street.

According to Gregory Watson, Portland’s director of economic and housing development, vacant commercial properties — especially those in storefronts — contribute to reduced foot traffic, declining property values ​​and property deterioration, which can have a knock-on effect and lead to more vacancies.

Discussions about the still-empty spaces began earlier this year with a group organized by Portland Downtown and Mechanics Hall, which included representatives from the Maine College of Art, the Portland Museum of Art and the State Theatre.

City staff also participated in those conversations and are now developing formal policy proposals with the support of city councilors on the Housing and Economic Development Committee.

While it’s too early to tell what those rules will look like, they will include “carrots” to encourage neighborhood revitalization and “sticks” to discourage commercial development, Watson said.

The city has looked to other communities for examples, including loan or grant programs to support improvements to building facades, requiring property owners to register commercial properties so the city can better communicate with them about long-term vacancies, and working with the arts community to temporarily use vacant spaces for temporary businesses or art exhibits.

“We hope to put in place solutions that will help here. It’s such an important part of the heart of downtown,” Watson said. “The future of Congress Square is pretty bright, and the Arts District as a whole will continue to be an important part of the city’s identity.”

FILLING THE DISTRICT

The Arts District is a few blocks from the waterfront and features a mix of office space, restaurants, shops, historic buildings and apartments clustered around Congress Street, one of the city’s busiest thoroughfares. The district stretches from City Hall to the West End and includes the Portland Museum of Art, the State Theatre, the Portland Stage Company, the Maine Historical Society, Merrill Auditorium, Mechanics Hall and the Maine College of Art.

Leahy, of Mechanics Hall, said empty storefronts, especially those that have been empty for years, are “a little mind-boggling.” When the street-level retail space opened in the Mechanics Hall building earlier this year, interest was overwhelming and a new tenant was quickly found, she said.

The city needs to take a long, hard look at the day-to-day experiences of Arts District business owners and leaders, Leahy said. The Congress Street corridor is “blocked by a few unique nonprofits,” but more businesses need to stay open after 5 p.m.

She wants to know why some spaces aren’t being rented out—a sentiment shared by others. The city sent a survey to property owners in the neighborhood, asking about the challenges of owning and renting in the area and what solutions might help. Watson hopes the answers will help staff develop new policies and incentives.

Bill Stauffer, who owns multiple commercial properties along Congress Street, said some property owners say they simply don’t need to fill their spaces, while others can be very selective about who they rent space to.

Whatever the reason they are empty, he believes they provide a stark contrast to the Old Port.

“If you think about the Old Port and the cruise ships coming in, you have this influx of people,” he said. “We seem to have lost a lot of that in the Arts District corridor.”

“IT’S NOT AS BAD AS IT LOOKS”

Even though several retail units are vacant, real estate agents say there is still strong interest in Congress Street, perhaps in part because it is a cheaper option than nearby Old Port.

“I think there’s still a lot of demand on Congress Street, especially from new startups,” said Joe Malone, a broker who has several listings in the Arts District, including the former Dunkin’ at 554 Congress St. “It’s not as bad as it looks. There are a few holes, but there’s a lot of interest in all the spaces we represent.”

After Dunkin’ closed, the building’s owners didn’t immediately try to lease the space because they were renovating and upgrading, Malone said. Since it was listed for sale in 2021, two potential tenants have backed out, but now another person is interested in the space.

Malone also heard there was a lot of interest in the former Starbucks in the historic H.H. Hay building at 594 Congress St., but the cost of renovating such a space could be high.

Cheri Bonawitz, another broker at Malone Commercial Brokers, said she’s had good luck filling spaces in the Arts District, including where Another Round, a board game bar and coffee shop, recently opened. She said businesses are drawn to the area because other restaurants and shops are doing well, and there’s a lot of housing in the area.

“I think it’s just about people coming in and seeing what can be done. A lot of people head to the Old Port, but it’s a great area,” she said. “There’s definitely an opportunity here.”

C.J. Opperthauser, executive director of Friends of Congress Square Park, also sees the opportunity and thinks it’s worth celebrating the number of new businesses that have popped up in the area over the past year. But empty storefronts distract from the walkability and vitality of the area, he said.

Opperthauser likes the idea of ​​encouraging exhibitions and art shows as a way to breathe life into empty spaces and “fill in the gaps.” Several empty storefronts lie within sight of Congress Square Park, which is currently undergoing a major redevelopment project.

“These active storefronts add life and energy to our space, and it spreads up and down Congress Street,” he said. “We’d like to see them filled.”

Copy link to story