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HARTFORDBUSINESS.COM | OCTOBER 20, 2025 7 DE AL WATCH and tariff policies under President Trump have added uncertainty, prompting many retailers to delay expansion plans or reduce costs amid rising rents and build-out expenses. Cushman's report also found that store closures outpaced openings in the second half of 2024. Even so, the firm said the sector remains relatively stable, with national market conditions expected to see only modest changes barring an unexpected recession. The national retail vacancy rate stood at 5.8% in the second quarter, up half-a-percentage point from a year earlier, but still below the 6.4% average between 2017 and 2019. Local trends mirror the national slowdown. In the Hartford market, the retail vacancy rate held at 7.3% in the second quarter, little changed from earlier in the year, while asking rents averaged $18.90 per square foot, Cushman & Wakefield data shows. Net absorption turned slightly negative at -31,600 square feet, reflecting softer tenant demand after several quarters of growth. In New Haven, the retail vacancy rate was even higher at 10.1%, down modestly from 10.3% in the first quarter. Average asking rents edged up to $18.79 per square foot, and net absorption rebounded into posi- tive territory at 16,800 square feet, suggesting a small pickup in leasing after a sluggish 2024. Waiting for a turnaround Tim McNamara, a senior director with Cushman & Wakefield who specializes in retail, said struggling malls face an uphill battle to reverse their trajectory. The same market forces that drove their decline — shifting consumer habits and retailer consolidation — have only inten- sified in recent years. He noted that retail demand is increasingly concentrating around a smaller number of successful malls and properties. Waterbury's Brass Mill Center illus- trates the challenge. The mall lost its two end-cap anchors, Macy's and Sears, years ago. More recently, Burlington relocated from the mall to the nearby Brass Mill Commons, leaving JCPenney as the only large retail anchor. Such conditions often lead to short- term leases, temporary tenants and hesitation among national retailers to make long-term commitments. "While it's an attractive property, I think the change in peoples' buying habits has resulted in a point of no return for anchors at some of these properties," McNamara said. Reviving properties like Brass Mill Center, McNamara added, typically requires a mix of creativity and signif- icant new investment. In some cases, struggling malls have been successfully repositioned by targeting niche markets — such as a Texas property that reinvented itself as an indoor bazaar serving a large Mexican population. In Waterbury, city officials are watching closely to see how Summit's ownership will shape the Brass Mill Center's future. Economic Development Director Joseph McGrath said Summit executives told the city about four months ago the mall can be revitalized, citing its prime location off Interstate 84 and nearby busy local roads. McGrath said the company has been cooperative, allowing the city to use portions of the mall's parking lot for parades and community events. Still, the city wants to see tangible progress toward the turnaround Summit has promised, he said. "I don't think they have accomplished what they promised they would do, but it's early in the game," McGrath said. Unlike the Brass Mill Center mall, the nearby open-air Brass Mill Commons plaza is now largely full, and its owner, Summit Properties, is investing in new pavement, landscaping, building repairs and other upgrades. HBJ Photo | Michael Puffer Tim McNamara An Award-Winning Community Bank Contact us today. Voted Best Local Bank, Best Mortgage Lender, Best Financial Planning, Best Place to Work and Top Corporate Charitable Contributor, PeoplesBank understands its customers and the communities it serves. Our commercial banking team serves as a growth engine for businesses, providing expert banking advice, local decision-making, and innovative products and services. David Ference First Vice President Commercial Banking dference@bankatpeoples.com Daniel Bishop First Vice President Commercial Banking dbishop@bankatpeoples.com Jennifer Yergeau Vice President Cash Management jyergeau@bankatpeoples.com Mark St. Pierre Vice President Business Banking mstpierre@bankatpeoples.com Learn More bankatpeoples.com/businessteam Member FDIC