Retail properties’ rents are expected to fall by double digits in the Hartford, New Haven and Fairfield County markets this year amid a rise in vacancies tied to the COVID-19 pandemic, according to a new research report.
Moody’s Analytics Real Estate Information Services (REIS) said this week it projects rent declines of 12.1 percent in the Hartford area, 12.1 percent in Fairfield County and 10.5 percent in New Haven.
That compares with a nationwide average retail rent decline of 11 percent in 2020, almost twice the total decline during the Great Recession period from 2008 to 2011, Moody’s Analytics REIS stated.
“Store closures have made it difficult for retail tenants to pay rent, which has negatively impacted landlords. It is not yet clear how effective government support will be in this sector,” Victor Calanog, head of CRE Economics at Moody’s Analytics, said in a statement.
Government-ordered shutdowns on non-essential businesses claimed their first high-profile casualty this week as clothing chain J. Crew filed for bankruptcy protection.
Gov. Ned Lamont has announced that the state will allow small retail stores to reopen beginning May 20.