Worcester Business Journal

16 Worcester Business Journal | November 3, 2025 | wbjournal.com Real Estate Running out of retail Second-generation restaurant spaces are driving demand in Central Mass. retail real estate BY ERIC CASEY WBJ Managing Editor T odd Alexander, an executive vice president at Worcester real estate brokerage Kelleher & Sadowsky who focuses on the retail sector, has been busy in 2025 trying to find space for clients. Retail vacancies in Central Mas- sachusetts real estate are sitting near all-time lows, he said. Most Worcester area properties are reporting vacancy rates between 2% and 4%, with malls and neighborhood centers seeing vacancies closer to 9%, according to real estate data firm CoStar. Like a lot of real estate insiders, Alexander said deals are taking a bit longer to finalize, given uncertainty and market conditions. "Retail is still very active," Alexan- der said. "Vacancy rates are at all-time lows, but it has been a little more chal- lenging to get deals done, because of the uncertainty in the economy. ere's not a sense of urgency with some of these retailers who are doing deals." The rise of restaurants e Boroughs region in MetroWest is particularly hot at the moment, with existing restaurant spaces moving quickly, he said. Low vacancy and the cost of constructing new restaurants space or converting non-restaurant spaces is a major factor. "Second-generation restaurant space has been going like gangbusters," Alexander said. "Everybody's looking for that. Obviously, it's a huge saving in infrastructure costs: things such as grease traps, venting hoods and things like that." National fast food chain Checkers is opening its only New England location on Gold Star Ave. at a former Honey Dew Donuts site, while Marlborough restaurant Chill is opening a second location in the Westborough Shopping Center on Lyman Street, the former location of Mexicali Cantina Grill. Brio 33, a new bistro in Westborough, is replacing the former Tavolino Italian Gourmet restaurant. Gail Hanson, a Westborough resi- dent and former Tavolino patron, is opening Brio 33 in an effort to allow the space to once again be a gathering space for locals aer Tavolino closed suddenly earlier in 2025, she said. e restaurant had a so opening in October and is planning a grand open- ing for November. About half of the 45 or so employees are former Tavolino workers, including Chef Kevin Sanders and General Manager Abigail Winant. While the existing restaurant space at 33 East Main St. made the project viable, unexpected costs and upgrades still added up, she said. "ere were a few more things that changed that we weren't aware of," Hanson said of new rules and regula- tions that required upgrades. "Before we could get back to having an occu- pancy permit, satisfying the board of health and all that kind of stuff, the list became a little bit longer." Anchored plazas In terms of retail real estate sales, the PHOTO | ERIC CASEY Todd Alexander, executive vice president of Kelleher & Sadowsky Associates Brio 33 in Westborough is one of many new restaurants in MetroWest opening in pre-existing restaurant space. Pictured (from left) are General Manager Abigail Winant, Executive Chef Kevin Sanders, and Co-owner Gail Hanson.

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