By Northeast Private Client GroupEastern Connecticut
Commercial Market Report
Q4 2025 · Data verified Q1 2026
The Eastern Connecticut commercial investment market has demonstrated steady, measured activity through 2025. Against the backdrop of an elevated interest rate environment, the market recorded 487 transactions totaling $528M in sales volume, a meaningful recovery from the pandemic-era lows of 2020 and broadly consistent with the volume levels seen in 2021. Average deal sizes have remained accessible, with pricing tracking at $1.4M per asset, reflecting the market’s character as a mid-market, owner-operator-driven region. Cap rates have drifted upward to 8.9% on average through 2025, consistent with the broader repricing cycle and presenting an increasingly attractive entry point for yield-focused investors. The region’s affordability relative to coastal Connecticut markets, stable tenant demand across multifamily and retail, and a manageable supply pipeline continue to underpin investment interest from both local and regional capital sources.
Quarterly activity in Eastern Connecticut has shown a healthy pattern of recovery and stabilization through 2025. Q2 and Q4 emerged as the strongest periods of the year by volume, with Q2 generating $178M across 122 transactions and Q4 closing out the year at $165M across 144 trades. Average pricing climbed meaningfully in Q2 to $2.0M per asset, driven by the completion of several larger multifamily transactions during that period. Cap rates have remained elevated in the 8 to 10% range throughout the year, offering yield-seeking investors a risk-adjusted entry point that is difficult to find in tighter coastal submarkets.
| Period | Transactions | Volume | Avg. price | Avg. cap |
|---|---|---|---|---|
| 2025 Q4 | 144 | $165.2M | $1,449,379 | 10.4% |
| 2025 Q3 | 117 | $108.1M | $1,257,198 | 7.9% |
| 2025 Q2 | 122 | $178.2M | $2,048,237 | 8.6% |
| 2025 Q1 | 104 | $76.8M | $947,989 | 8.5% |
| 2024 Q4 | 131 | $118.2M | $1,114,800 | 8.1% |
| 2024 Q3 | 88 | $81.0M | $1,285,856 | 7.7% |
| 2024 Q2 | 99 | $74.8M | $890,742 | 7.0% |
| 2024 Q1 | 87 | $67.3M | $935,190 | 7.1% |
| 2023 Q4 | 93 | $109.8M | $1,639,529 | 7.4% |
| 2023 Q3 | 92 | $84.1M | $1,092,206 | 8.0% |
| 2023 Q2 | 108 | $134.7M | $1,820,332 | 7.4% |
| 2023 Q1 | 103 | $235.3M | $2,905,259 | 7.8% |
| 2022 Q4 | 123 | $95.6M | $1,074,607 | 7.0% |
| 2022 Q3 | 133 | $130.9M | $1,471,109 | 7.8% |
| 2022 Q2 | 133 | $129.8M | $1,169,591 | 7.5% |
| 2022 Q1 | 108 | $233.6M | $3,074,009 | 7.4% |
| 2021 Q4 | 137 | $172.0M | $1,773,519 | 7.8% |
| 2021 Q3 | 166 | $159.6M | $1,352,331 | 6.9% |
| 2021 Q2 | 123 | $90.7M | $954,662 | 8.1% |
| 2021 Q1 | 94 | $117.5M | $1,587,819 | 9.6% |
*Office spread is nominally wide but reflects elevated leasing and credit risk. Buyer pool remains limited to owner-users and opportunistic capital.
Eastern Connecticut’s multifamily sector delivered a standout year through 2025, with 77 transactions generating $210M in total volume — the second-highest annual volume in the dataset, trailing only 2022’s $238M, and a sharp recovery from 2024’s $70M. Average pricing climbed to $3.1M per asset, more than double the 2024 level, as larger portfolio deals and institutional-quality properties found willing buyers at premium pricing. Despite higher borrowing costs, cap rates compressed to 8.7%, suggesting that buyer competition for quality multifamily product remains real.
| Period | Transactions | Volume | Avg. price | Avg. cap |
|---|---|---|---|---|
| 2025 | 77 | $210.0M | $3,134,553 | 8.7% |
| 2024 | 66 | $70.3M | $1,211,233 | 6.7% |
| 2023 | 38 | $192.6M | $7,702,097 | 7.5% |
| 2022 | 77 | $238.1M | $4,105,826 | 7.6% |
| 2021 | 67 | $105.4M | $1,786,006 | 7.3% |
The office sector in Eastern Connecticut saw a notable increase in transaction activity through 2025, with 117 closed deals generating $42M in total volume. While deal count rose meaningfully from prior years, average pricing remained under pressure at $652,000 per asset. Cap rates have settled at 9.3%, among the highest recorded for the sector in recent years, signaling that buyers are demanding meaningful yield premiums to take on the operational and leasing risk inherent in office acquisitions.
| Period | Transactions | Volume | Avg. price | Avg. cap |
|---|---|---|---|---|
| 2025 | 117 | $42.4M | $651,619 | 9.3% |
| 2024 | 72 | $33.6M | $610,645 | 7.8% |
| 2023 | 70 | $55.0M | $1,100,162 | 7.4% |
| 2022 | 90 | $51.7M | $728,218 | 7.4% |
| 2021 | 83 | $28.2M | $486,566 | 9.5% |
Retail investment in Eastern Connecticut has proven remarkably resilient, solidifying its position as the most active sector by transaction count in the region. Through 2025, investors completed 200 retail transactions totaling $164M in volume, with average pricing at $1.1M per asset. Cap rates averaged 9.1%, historically high levels that reflect both the interest rate environment and investor selectivity.
| Period | Transactions | Volume | Avg. price | Avg. cap |
|---|---|---|---|---|
| 2025 | 200 | $164.1M | $1,131,485 | 9.1% |
| 2024 | 153 | $121.7M | $965,665 | 7.5% |
| 2023 | 177 | $177.3M | $1,266,682 | 8.2% |
| 2022 | 181 | $132.7M | $997,710 | 7.3% |
| 2021 | 214 | $220.5M | $1,432,003 | 8.1% |
Eastern Connecticut’s industrial market has settled into a period of measured activity. Through 2025, the market recorded 30 industrial transactions totaling $24.7M in volume, with average pricing stabilizing at $1.1M per asset. The region’s position along key transportation corridors, its relatively affordable land basis compared to coastal Connecticut markets, and growing interest from light manufacturing and logistics users all support long-term investment interest.
| Period | Transactions | Volume | Avg. price | Avg. cap |
|---|---|---|---|---|
| 2025 | 30 | $24.7M | $1,121,521 | 8.6% |
| 2024 | 33 | $25.9M | $1,127,503 | 12.6% |
| 2023 | 31 | $71.6M | $2,862,035 | 6.7% |
| 2022 | 40 | $44.0M | $1,467,326 | 6.6% |
| 2021 | 42 | $36.7M | $1,019,033 | 9.1% |
| Property | Sale price | Units | SF | Price / SF |
|---|---|---|---|---|
126 Litton Avenue Groton, CT Multifamily | $25,400,000 | 141 | 116,460 | $218.10 |
309 Crystal Ave, 14 Bristol St & 151–171 Oneco Ave New London, CT Portfolio · Multifamily | $17,280,000 | 136 | 84,177 | $205.28 |
95 Pequot Avenue New London, CT Land | $1,450,000 | — | — | — |
80–82 Maple Avenue New London, CT Multifamily | $1,115,000 | 12 | 6,900 | $161.59 |
15 Chester Street New London, CT Multifamily | $915,000 | 10 | 3,840 | $238.28 |
| Property | Sale price | Units | SF | Price / SF |
|---|---|---|---|---|
26 Bishop Lane Groton, CT Multifamily | $22,500,000 | 107 | 89,206 | $252.23 |
850 Hartford Tpke Waterford, CT Retail · Regional Mall | $18,579,126 | — | 400,000 | $46.45 |
23 Clara Drive Mystic, CT Office | $6,100,000 | — | 45,576 | $133.84 |
266 Bridge Street Groton, CT Industrial | $4,000,000 | — | 33,900 | $117.99 |
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What’s My Property Worth?Northeast Private Client Group · Data sourced from CoStar Inc., Landvision, and Public Records. Financing conditions and submarket data are illustrative estimates for demonstration purposes. Verified Q1 2026. This report is for informational purposes only and does not constitute investment advice.
Financing Conditions Sources: 10-yr Treasury: Trading Economics / Federal Reserve H.15, April 28, 2026 · Fed funds rate: Federal Reserve, January 2026 FOMC meeting · CRE loan spreads: CRED iQ via Commercial Observer, April 2026 (60–65% LTV permanent loans, Q1 2026) · DSCR requirements: CBRE, industry lender standards, 2026
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