New Haven-Fairfield County Retail Market Report

Southern Connecticut demonstrating resilience to recent tenant shifts. After nearly returning to the pre-pandemic level in 2022, the market’s overall vacancy rate has since risen 80 basis points. That said, last year’s increase was due entirely to greater availability among New Haven County single-tenant properties. Such spaces were relinquished on net in the second half of 2024, as retailers such as Bob’s Stores, Party City, and Stop & Shop closed locations here and elsewhere in the state. Falling vacancy last year across all other segments of the market, however, provides encouragement. The retail outlook is further brightened by total employment across the two counties climbing back above 800,000 people last year — a feat last achieved in 2000. A greater number of higher-earning households supports consumer spending and retailers’ need for space in aggregate. New supply is picking up this year; however, most floorplans are well accounted for. As such, availability in many segments of the market will continue to be limited, supporting the backfilling of recently vacated properties.