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Naples' retail vacancy is hovering around historic lows, decreasing just under 50 basis points year over year and is now just 3.6% as of the third quarter of 2023, the lowest vacancy has been since late 2017. Limited new construction has been a key factor in keeping vacancy low here, as only 52,000 SF as delivered in the past 12 months. Preleasing has been robust on the current pipeline of 70,000 SF, which will have minimal impact on the market's vacancy rate in the near term. CoStar is forecasting Naples' vacancy to remain around 4% for the foreseeable future, in large part due to the limited construction pipeline and consistent demand.
The Naples market has one of the highest retail asking rates in Southwest Florida at $28.00/SF. Asking rate gains have been consistent over the past several years, hovering around the 4% to 5% range and are up 4.9% year over year. Looking ahead, asking rent growth is forecast to decelerate here over the coming quarters eventually flatten by mid-2024.
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