A Market Defined by Variety: Why Adaptability Drives Success on the New Hampshire Seacoast

By: Austin Stebbins | Associate

Commercial real estate brokers often debate whether to specialize in a single property type or to diversify across sectors.  In some cases, there is no true answer; it truly varies based on location and opportunity.  In larger metropolitan areas, the scale of the market allows for a more drastic weight to specialization; a broker can focus solely on industrial warehouses or retail properties and never run out of prospects.

Many of our local markets, especially here on the New Hampshire Seacoast, tell a different story.

Unlike Boston and New York, the Seacoast of New Hampshire is full of smaller market cities and towns like Portsmouth, Dover, Exeter, and Hampton, that have a larger reliance on unique and key business drivers such as tourism, advanced manufacturing, life sciences, and plenty more.  Inventory is tighter, transaction volume is smaller, and typically property types vary by block.  For both brokers and investors, that reality demands a strategy that blends focused expertise with the flexibility to work across multiple asset classes.

A Market Defined by Variety

Office

Professional services, creative agencies, and technology firms are largely responsible for the reshaping of the Seacoast office scene.  This sector was arguably influenced the largest by COVID-19; companies that once occupied large floorplans now value flexible layouts, shared amenities, and hybrid-ready space.  Buildings that are able to adapt, chop up existing floor plans and can offer other amenities are typically the ones attracting tenants and commanding premium rents.  Though the Seacoast is experiencing high vacancies amongst Class A office buildings, asking rents have climbed to historic heights.  This dynamic makes well-leased, highly flexible office buildings particularly prized by investors.

Industrial and Flex

These properties remain amongst the most sought-after investments in the region.  Industrial vacancies remain low post COVID-19.  Flex properties, driven by e-commerce businesses, small to medium sized start-ups, local trades, and light manufacturers have been especially popular over the past decade.  Low vacancies with elevated rents, along with the lack of product available are large drivers to popularity in this asset class.

Multifamily

Multifamily remains a sought-after asset class on the New Hampshire Seacoast, where many surrounding towns continue to be highly desirable in a state facing a persistent housing shortage. Vacancy rates stay low, and some owners report strong applicant demand even at elevated rents. Existing properties are especially attractive to investors seeking either stable income or value-add potential. New development generally produces tighter returns, underscoring the need for conservative underwriting. Larger acquisitions can benefit from economies of scale, but prudent risk management remains essential.

Retail

The Seacoast benefits greatly from no sales tax, tourism, hospitality, and a vibrant local population that favors unique experiences.  From Portsmouth’s historic charm to the seasonal shops in Hampton Beach, properties with strong pedestrian traffic and curated tenant mixes create long-term stability.  While there is certainly a focus on square footage and high lease rates, the importance of delivering experiences that online competitors cannot replicate is essential.

Diversification and Why It Matters

It would not be uncommon for a broker or investor in the Seacoast to close an industrial sale, negotiate a retail lease, and pursue a multifamily acquisition all within the same quarter.  Restricting activity to a single sector can leave profitable opportunities untapped.  A balanced portfolio often helps maintain steady deal flow even when one property type hits a rough patch.  Take the industrial market as an example: sudden tariff increases disrupt global supply chains, raise construction costs, and directly impact tenant expansion.  Multifamily, by contrast, is less sensitive to trade policy, and doesn’t take as great of a hit.  Having a diverse portfolio enables a broker or investor to keep opportunities flowing during headwinds in another asset class.

Specialization Within Diversification – Timing and Personal Fit

Diversification does not mean abandoning a niche.  In small markets, the most successful professionals are the ones who take a liking or confidence in one or two sectors while maintaining the ability to handle others.  A broker might be known for specializing in industrial and flex deals but still may pioneer a prime retail lease when the right tenant appears.  Brokers and owners in this industry are often known for dabbling in all asset classes for a reason.

Market timing and individual comfort levels are equally important as strategy.  Interest rate movements, job growth, tourism trends, municipal planning decisions can all drastically shift demand between asset classes.  Some investors may gravitate toward the steady income of stabilized multifamily properties, while others enjoy the active management and upside potential of retail or value-add industrial.  Sometimes it can be about playing to your strengths, background, or even general interests as well.  It’s human nature to be passionate about something you’re good at or interested in.  Brokers should likewise align their focus with personal strengths.  Relationship-driven professionals may excel in retail leasing, while data-focused analysts may prefer to handle a complex multifamily or office acquisition.  It’s good to be diverse, but even better to play to one’s strengths.

Practical Guidance

As a buyer or investor, it’s important to actively review portfolios and stay up to date on the market.  Maintaining relationships with brokers who cover multiple sectors remains equally important;  finding a deal before it may hit the market could put you at a competitive advantage.  It’s also helpful to understand what type of investor you are; do you prefer to be hands-on, or is it preference for a more passive income play?

For brokers, define a niche where you excel so clients understand your specialty, while also demonstrating the breadth of services you can provide. Continue to stay market-savvy, tour different kinds of properties frequently and challenge yourself to learn.  It’s a great skill to be able to monitor local analytics and spot trends and developments before they become obvious.

The Seacoast Advantage

The New Hampshire Seacoast rewards professionals who pair expertise with adaptability.  Opportunities can surface in any sector at any time, and the market favors those who are ready to pivot.  Brokers and investors who maintain depth in their chosen specialties while staying active across all asset classes will be best positioned to capture the full potential of what the Seacoast has to offer.  In a market defined by character and variety, flexibility is not a fallback strategy – it is the competitive edge.