Julie Freshman is vice president of MG Commercial Real Estate Services Inc., which she joined in 2018. Holding a Society of Industrial & Office Realtors designation, Freshman is primarily focused on industrial property sales and leasing. She previously worked in the environmental consulting/engineering industry, starting her career in the field in 2003 in Rhode Island and southern Massachusetts, until she ultimately transitioned to commercial real estate. She holds a bachelor’s degree in environmental science from the University of Delaware and a master’s degree in energy and environmental analysis from Boston University.
Freshman has represented both buyers and tenants, as well as sellers and landlords. Some of the notable recent transactions she was involved with as a seller representative include a 50,000-square-foot industrial building in East Providence that sold for $4.8 million, and a LEED Gold certified 32,000-square-foot industrial/manufacturing facility in the Quonset Business Park in North Kingstown with just under 4 acres of land that sold for $3.4 million.
PBN: How strong is Rhode Island's commercial real estate market compared to past times, both in terms of leases and sales?
FRESHMAN: The Rhode Island commercial real estate market generally remains steady, with strong performance in the industrial sector; stable performance in the suburban office sector, with higher vacancy rates in the downtown office market and an increase in subleasing activity; and stable performance in the local retail sector, with malls needing some repositioning.
PBN: How will the Providence office market, including the downtown area, evolve in the next five to 10 years, and beyond?
FRESHMAN: The Providence office market is likely to see continued pressure on traditional office space and is likely to see more conversions to residential, life sciences, education or mixed use. One example of a recent new amenity to Providence is Track 15, which is a food hall that recently opened in the former Union Station. Brown University continues to purchase and invest in downtown Providence real estate and will continue to evolve the downtown area into a mixed-use district and innovation hub, blending education, office, residential and retail/hospitality.
PBN: Is there any segment or type of commercial real estate that is in demand right now? If not, which is easier to sell and why?
FRESHMAN: Industrial real estate continues to stay in high demand. Limited new construction and sustained demand across various industrial sectors – including e-commerce and logistics, manufacturing, life sciences and pharmaceuticals – has led to a relatively tight market with low vacancy rates.
PBN: What's your best general advice to those looking to buy commercial real estate in Rhode Island to establish or relocate their retail business?
FRESHMAN: My best general advice would be to find a commercial real estate broker to work with who knows the local retail market well, as well as meet with local or regional commercial lenders to establish a relationship and understand what would be involved with getting qualified and approved for a loan.
PBN: How has national politics impacted commercial real estate, in terms of lending and prices, and anything else?
FRESHMAN: In general, national politics has always affected commercial real estate and political decisions will create both opportunities and challenges for developers, investors and tenants.
The higher interest rates have increased borrowing costs and tighter lending standards have reduced the availability for capital for developers and buyers.
Due to higher borrowing costs, the value of income-producing properties has softened as investors demand higher returns to compensate for the increasing financing costs, which has led to increased cap rates.
Recent changes to trade policies – tariffs, sanctions, trade agreements – has caused the industrial leasing market to flatten a bit related to larger warehouse spaces as companies wait to figure out how things shake out; however, on the flip side, some manufacturing companies are looking to secure space in the United States to avoid the higher cost of shipping.
Marc Larocque is a PBN contributing writer. Contact him at Larocque@PBN.com. You may also follow him on X @Marc_La_Rock.
