PORTSMOUTH — The owners of the landmark Rusty Hammer on the corner of State and Pleasant streets did not renew their lease with the building's owner next door, according to real estate broker Bill Mouflouze.

PORTSMOUTH — The owners of the landmark Rusty Hammer on the corner of State and Pleasant streets did not renew their lease with the building's owner next door, according to real estate broker Bill Mouflouze.



"Rusty (Hammer) and Billy (MacMillan) own the building on the corner and they have been leasing from the owner I represent," Mouflouze said Monday. "They did not renew their lease, so I have 1,800 square feet of retail space available."



That means the restaurant owners will continue operating, but in the smaller space inside the building they own, Mouflouze said, and they will no longer use the space in the building next door.



The landmark and long-running restaurant in downtown Portsmouth celebrated its 30th anniversary in 2008.



The co-owners of the Rusty Hammer leased the additional space in the building next door from an owner that Mouflouze represents to give them more space in the restaurant, he said Monday.



"They were just going back to what they did originally," Mouflouze said of the restaurant's plans to operate in the smaller space.



A manager at the Rusty Hammer declined to comment when a reporter visited the restaurant Monday afternoon during a busy and unseasonably warm day in the city, which brought out even more visitors than normal to the downtown.



She said any comments would have to be made by the owners.



Calls made to Hammer's home Monday were not immediately returned.



The co-owners of the Rusty Hammer gave Mouflouze the news about a week ago, which leaves the real estate broker looking for a new tenant, he said.



"I've already got some calls of interest," Mouflouze said of the prime downtown location. "We're shooting for retail and not another restaurant in there. It will be a fresh business in there."



Mouflouze, who's been a broker in the city for 32 years, said demand for space in the city, particularly in Market Square and the downtown, remains high.



"It's really strong," Mouflouze said about the downtown market.