Durham Retail Vacancy and Openings Track Investment Flows

Durham's retail vacancy rate remained at 2.41 percent in 2025 while the city posted 90 new retail openings, the highest total in any post-pandemic year since 2019.

These figures matter because they mark where retailers and property owners continue to commit capital even as some larger spaces turn over.

Downtown Gains Concentrate on Locally Owned Sites

Downtown Durham recorded 50 new businesses in 2024, 46 of them locally owned, for a net gain of 32 businesses. Thirteen additional announcements arrived in the first four months of 2025. Openings in 2024 included Topgolf in South Durham, Emmy Squared Pizza at Brightleaf Square and Thaiangle at Roger's Alley. In 2025 the street-level spaces at 321 W. Main and Ascend Collection Menswear at 329 W. Main converted from temporary to permanent use.

The concentration of locally owned operators along Main Street and adjacent alleys shows investment flowing into smaller footprints rather than large national boxes.

Q1 Data Show Absorption Dip and Rent Rise

Lee & Associates tracking for the first quarter of 2025 recorded negative absorption of 392,943 square feet and vacancy climbing to 3.16 percent after several big-box closures. Asking rents nevertheless edged higher to 25.08 dollars per square foot. Across the Raleigh-Durham market, development stayed focused on suburban build-to-suit projects while downtown locations dealt with reduced office foot traffic.

These quarterly numbers illustrate how suburban sites continue to attract new construction dollars even as downtown storefronts rely on steady smaller-scale leasing.

Market participants will watch whether the modest rent gains hold through the balance of 2025 as new suburban projects reach completion and downtown operators adjust to current traffic levels.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.