Southeast Nassau Retail Submarket Report – March 2025 Summary

Stacey Bryan

Stacey Bryan

Market Overview

  • Vacancy Rate: 6.2% (up 0.5% YoY)
  • Net Absorption: -37,000 SF
  • New Deliveries: 3,000 SF
  • Total Inventory: 8.3 million SF
  • Market Rent Growth: 1.9% YoY ($33.00/SF average)
  • Availability Rate: 4.1%
  • Under Construction: None

Retail Property Performance

  • Neighborhood Centers: 3.2% vacancy, $37/SF rent
  • Power Centers: 23.1% vacancy, $30.13/SF rent
  • Strip Centers: 1.2% vacancy, $32.22/SF rent
  • Malls: 15.8% vacancy, $30.38/SF rent
  • General Retail: 4.0% vacancy, $32.53/SF rent

Leasing & Construction

  • No new retail construction is currently underway.
  • Leasing activity is slow, with negative net absorption in power centers and strip centers.

Sales Activity

  • Total Sales Volume (12 months): $26.9 million
  • Avg. Price per SF: $309
  • Cap Rate: 6.6% (slightly higher than the market average of 6.5%)
  • Largest Sale: 2250 Seamans Neck Rd for $8 million ($565/SF)

Trends & Forecast

  • Vacancy rates are trending higher than the 5-year (4.7%) and 10-year (4.0%) averages.
  • Rental rates have grown slower than historical averages.
  • No significant construction activity suggests that demand will continue to adjust within existing inventory.
  • Power centers and malls face higher vacancy risks compared to other retail property types.

This report highlights a tightening retail market with minimal new development, steady but slow rent growth, and relatively stable sales activity. Power centers and malls remain the most challenged sectors in the submarket.