New Haven-Fairfield County Retail Market Report

Faster re-tenanting lifts outlook. Retail vacancy in New Haven and Fairfield counties rose in 2025 amid several anchor tenant departures, though move-outs were concentrated in outer, secondary nodes such as Meriden. Despite topping 4 percent, Fairfield County’s vacancy remained well below the roughly 7 percent level recorded in New Haven County, reflecting its deeper, more affluent consumer base. Backfilling activity in Fairfield County also proved more resilient, with two roughly 50,000-square-foot Stop & Shop locations re-leased to new grocery tenants in late 2025. At the same time, tenant demand broadened modestly across the market as traditional retailers expanded through smaller formats, including recent openings by Barnes & Noble and Ashley Furniture, alongside Best Buy’s planned 20,000-square-foot store in Waterbury. Ongoing backfilling activity and a more moderate pace of move-outs should allow vacancy to decline slightly in 2026, particularly as the development pipeline remains thin.