Southeast Nassau Retail Submarket Report – March 2025 Summary

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.