By Northeast Private Client GroupMarket Overview
In the second half of 2025, New Haven’s commercial real estate market demonstrated steady performance, with sector-specific variations in activity and growth. The multifamily sector remains the strongest, supported by solid absorption, easing vacancy, and continued renter demand despite a brief slowdown in rent growth. The office market is stable, maintaining vacancy around long-term averages with modest rent gains. Industrial activity has softened following years of expansion, with negative absorption and slower rent growth, though limited new construction is preventing oversupply. Meanwhile, the retail sector is performing well, with healthy leasing fundamentals and above-average rent increases amid minimal development. Overall, New Haven’s fundamentals remain resilient, positioning the market for gradual improvement in occupancy and rent growth through 2026.
New Haven County Commercial Sales
| Period | # Trans. | Volume | Avg. Price | Avg. Price/SF | Avg. Cap |
|---|---|---|---|---|---|
| 2025 YTD | 360 | $484.8M | $1.73M | $137.44 | 7.8% |
| 2024 | 481 | $698.5M | $1.78M | $100.17 | 7.9% |
| 2023 | 489 | $1.02B | $2.67M | $129.85 | 7.7% |
| 2022 | 718 | $1.36B | $2.45M | $122.49 | 7.1% |
| 2021 | 586 | $795.1M | $1.72M | $92.72 | 7.8% |
| 2020 | 525 | $526.5M | $1.49M | $70.45 | 8.4% |
| 2019 | 586 | $1.11B | $2.80M | $104.58 | 8.0% |
| 2018 | 486 | $874.1M | $2.41M | $87.56 | 8.7% |
| 2017 | 418 | $619.1M | $2.20M | $101.65 | 8.3% |
| 2016 | 452 | $660.5M | $1.94M | $97.20 | 7.8% |
| 2015 | 116 | $334.8M | $3.52M | $106.33 | 7.5% |
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Quarterly Property Sales
After a strong finish to 2024, the first two quarters of 2025 maintained a steady pace of transactions, with a notable increase in sales volume in the second quarter, signaling robust investor confidence heading into the second half of the year. Going into the latter half of the third quarter of 2025, the pace at which properties were trading has slowed down. So far only 98 sales across all property types have transacted. In the first half of this year larger assets drove activity, pushing the average deal size to $2.10 million in Q1, reflecting investors’ pursuit of scale at more favorable entry points. Overall, the quarter reflects a decisive rebound marked by stronger liquidity, larger trades, and a renewed desire for New Haven County assets.
| Period | # Trans. | Volume | Avg. Price | Avg. Price/SF | Avg. Cap |
|---|---|---|---|---|---|
| 2025 Q3 | 98 | $77.3M | $1.15M | $109.63 | 9.4% |
| 2025 Q2 | 123 | $162.0M | $1.67M | $131.97 | 8.7% |
| 2025 Q1 | 138 | $245.5M | $2.10M | $154.11 | 6.8% |
| 2024 Q4 | 143 | $186.2M | $1.58M | $99.84 | 7.6% |
| 2024 Q3 | 108 | $123.5M | $1.39M | $113.63 | 8.8% |
| 2024 Q2 | 136 | $296.6M | $2.62M | $100.57 | 7.1% |
| 2024 Q1 | 94 | $92.2M | $1.28M | $84.33 | 8.5% |
| 2023 Q4 | 106 | $322.6M | $3.58M | $139.73 | 6.5% |
| 2023 Q3 | 125 | $190.4M | $2.35M | $125.40 | 7.3% |
| 2023 Q2 | 119 | $313.7M | $3.27M | $153.91 | 8.5% |
| 2023 Q1 | 139 | $197.6M | $1.70M | $96.36 | 7.9% |
| 2022 Q4 | 130 | $432.5M | $4.08M | $168.42 | 6.3% |
| 2022 Q3 | 202 | $345.1M | $2.20M | $103.95 | 6.5% |
| 2022 Q2 | 195 | $357.0M | $2.23M | $106.88 | 7.8% |
| 2022 Q1 | 191 | $228.0M | $1.71M | $119.21 | 7.6% |
| 2021 Q4 | 173 | $311.2M | $2.09M | $80.49 | 7.0% |
| 2021 Q3 | 142 | $130.0M | $1.35M | $108.86 | 8.1% |
| 2021 Q2 | 153 | $207.5M | $1.67M | $97.84 | 7.9% |
| 2021 Q1 | 118 | $146.4M | $1.59M | $107.21 | 8.4% |
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Multifamily Market Overview
Steady Performance Amid Changing Market Conditions
The New Haven multifamily market continued to demonstrate resilience through early 2025. While transaction activity has moderated from the post-pandemic highs of 2022, pricing remains stable, supported by consistent renter demand and limited new supply. Investor interest has centered on well-located suburban and workforce housing assets, as capital adjusts to a higher-rate environment.
| Period | Volume | Avg. Price/Unit | Avg. Cap |
|---|---|---|---|
| 2025 YTD | $254.7M | $4.72M | 7.9% |
| 2024 | $202.7M | $2.90M | 8.1% |
| 2023 | $142.4M | $1.85M | 8.1% |
| 2022 | $564.0M | $5.87M | 7.2% |
| 2021 | $228.3M | $2.72M | 7.7% |
| 2020 | $95.7M | $5.98M | 7.7% |
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Market Asking Rent Trend
Office Market Overview
Medical and Redevelopment Activity Support Office Stability
The New Haven County office market is stabilizing, with transaction activity in 2025 pacing close to last year’s levels. While broader economic conditions continue to weigh on traditional office absorption, medical and adaptive reuse properties remain active trading targets. Pricing metrics have stabilized, with cap rates steady and investor focus shifting toward value-add and healthcare-oriented assets.
| Period | Volume | Avg. Price/SF | Avg. Cap |
|---|---|---|---|
| 2025 YTD | $46.7M | $42.59 | 7.0% |
| 2024 | $66.9M | $44.24 | 8.1% |
| 2023 | $320.8M | $129.48 | 8.3% |
| 2022 | $209.7M | $56.38 | 7.9% |
| 2021 | $87.3M | $41.68 | 8.7% |
| 2020 | $12.1M | $55.67 | 12.5% |
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Office Market Asking Rent Trend
Retail Market Overview
New Haven Retail Market Shows Resilient Performance Amid Slower Sales
Retail investment activity in New Haven has remained steady, with 112 transactions recorded so far in 2025 totaling $111 million in sales. Although sales volume has slowed from last year’s $217 million, average pricing has strengthened to $128 per square foot, marking a notable rebound from 2024 levels. The average cap rate currently stands at 7 percent, reflecting stable investor confidence despite tighter financing conditions. Activity peaked in 2022 with 243 transactions and $330 million in volume, but recent trends suggest a shift toward smaller, higher-quality deals. Overall, the market continues to show resilience with strong buyer interest in well-located assets that provide steady income and long-term value.
| Period | Volume | Avg. Price/SF | Avg. Cap |
|---|---|---|---|
| 2025 YTD | $111.0M | $128.17 | 7.0% |
| 2024 | $216.7M | $93.36 | 7.8% |
| 2023 | $225.8M | $132.23 | 6.9% |
| 2022 | $329.8M | $87.33 | 6.4% |
| 2021 | $236.5M | $95.22 | 7.5% |
| 2020 | $33.3M | $113.39 | 7.5% |
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Retail Market Asking Rent Trend
Industrial Market Overview
Limited Supply and Pricing Dislocation Shape Industrial Activity
The New Haven County industrial market remains defined by tight inventory and limited large-scale trading activity. While overall transaction volume has declined relative to recent peak years, pricing for high-quality and strategically located assets continues to show strength. The first half of 2025 has seen cap rates expand significantly, reflecting broader capital markets conditions, though underlying demand for functional warehouse and flex space remains durable across the region.
| Period | Volume | Avg. Price/SF | Avg. Cap |
|---|---|---|---|
| 2025 YTD | $43.3M | $43.00 | 11.5% |
| 2024 | $86.1M | $42.78 | 7.2% |
| 2023 | $154.3M | $61.61 | 3.7% |
| 2022 | $130.7M | $50.21 | 8.8% |
| 2021 | $146.1M | $48.43 | 7.4% |
| 2020 | $39.5M | $77.82 | – |
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Industrial Market Asking Rent Trend
NPCG Transactions
| Property & Address | Sale Price | Units | SF | PPU/PPSF | |
|---|---|---|---|---|---|
|
The Residences at the Kestrel, Seymour CT Seymour, CT Multi-family |
$10,500,000 | 34 | 37,884 | $308,824 / Unit |
|
Crestview Apartments, West Haven CT West Haven, CT Multi-family |
$8,250,000 | 63 | 62,727 | $130,952 / Unit |
|
Elm Street Apartments, West Haven CT West Haven, CT Multi-family |
$5,242,500 | 40 | 28,952 | $131,063 / Unit |
|
152 Old Gate Lane, Milford CT Milford, CT Industrial |
$3,100,000 | — | 32,330 | $96 / SF |
|
1 Park Circle, Milford CT Milford, CT Multifamily |
$2,425,000 | 14 | 8,035 | $173,214 / Unit |
Notable Transactions
| Property & Address | Sale Price | Units | SF | PPU/PPSF | |
|---|---|---|---|---|---|
|
The Whit, New Haven CT New Haven, CT Multi-family |
$71,718,000 | 230 | 250,978 | $311,817 / Unit |
|
|
Crestview Apartments, West Haven CT West Haven, CT Multi-family |
$8,250,000 | 63 | 62,727 | $130,952 / Unit |
|
Laurel Estates, Waterbury CT Waterbury, CT Multi-family |
$41,250,000 | 276 | 207,000 | $149,456 / Unit |
|
Bernie’s Plaza, Waterbury CT Waterbury, CT Retail |
$5,800,000 | – | 62,235 | $93.20 / SF |
|
200 Main St, Ansonia CT Ansonia, CT Office |
$4,739,680 | – | 27,618 | $171.62 / SF |
|
238 Wolcott Rd, Wolcott CT Wolcott, CT Industrial |
$3,100,000 | – | 52,574 | $58.96 / SF |
Your Market Expert
| Agent Information | Contact | |
|---|---|---|
|
Brad Balletto Managing Director, Investment Sales Licensed in: CT |
(203) 307-1574 bballetto@northeastpcg.com |
Interested in more information?
Data gathered from CoStar Inc. & Analyzed by Northeast Private Client Group. Data verified by Northeast Private Client Group Q4 2025.
