Setting up shop in the suburbs

Strip malls command the highest rents, but bars and restaurants bring new life to downtowns

Mar.March 01, 2017 07:00 AM

Long Island shoppers may be bucking a national trend. In the rest of the country, online retailers are undercutting their offline counterparts, forcing established department stores to close their doors. But although not quite immune, retail in Nassau and Suffolk counties hasn’t seen as many chains having to shutter locations. In fact, rents and leasing activity have edged up in the last few years.

Once-empty downtowns have reinvented themselves by encouraging restaurant rows, like in Farmingdale’s village, a trend that in many ways was hatched in the South Shore community of Patchogue — whose retail district now crackles with nightlife amid new apartments.

Similarly, the massive development projects that are underway in places like Glen Cove, Hempstead Village and Wyandanch aim to create dense, walkable neighborhoods with more brick-and-mortar stores.

The average annual retail rent across Long Island at the end of 2016 was about $26 a square foot, according to CoStar Group, up from about $24 a foot at the end of 2014. Leasing activity on Long Island, meanwhile, totaled about 604,000 square feet, CoStar reported, versus about 450,000 at the end of 2014.

To be fair, Long Islanders still spend lots of time in cars, and high-traffic streets lined with strip malls still command among the steepest rents, according to an analysis by The Real Deal.

And weak spots exist: Storefronts in strong submarkets, like the Village of Roslyn, have been slow to lease up. And brokers say that while some categories, like furniture, are struggling, others, like medical clinics, are picking up the slack. 

Below, TRD looks at what has changed — and what probably doesn’t need to — in three major retail hubs. 

(Click to enlarge)

(Click to enlarge)

(Click to enlarge)


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Sackman Enterprises president Carter Sackman and 15-19 West 96th Street (Sackman Enterprises, Google Maps, iStock)
Fed up Chabad sues Sackman over unfinished condo
Fed up Chabad sues Sackman over unfinished condo
A photo illustration of Times Square (iStock)
Retail asking rents show signs of recovery
Retail asking rents show signs of recovery
Mitch Kossoff (iStock)
Sleuth seeking Kossoff victims’ money makes surprising discovery
Sleuth seeking Kossoff victims’ money makes surprising discovery
HomeLight CEO Drew Uher (HomeLight, iStock)
HomeLight lays off a fifth of its workers, weeks after raising $60M
HomeLight lays off a fifth of its workers, weeks after raising $60M
Berkshire Hathaway HomeServices' Steven James (right) and Brad Loe (BHHS, iStock)
Berkshire Hathaway HomeServices wants to be a New York contender
Berkshire Hathaway HomeServices wants to be a New York contender
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...