The Daytona Beach retail market is experiencing steady momentum heading into Q2 2025, driven by both population growth and retailer demand. While there is currently no active construction, several new grocer announcements—including Sprouts and Trader Joe’s—signal confidence in the market’s long-term potential. The metro population has already surpassed 700,000 residents as of 2023, with forecasts projecting an average annual growth rate of 1.2% from 2025 through 2029. On the leasing front, tenant activity is strongest for properties over 20,000 square feet, as the market has limited options available below this threshold.

 

Daytona Beach Demographics

• • Unemployment Rate: 4.3%
• • Current Population: 748,690
• • Households: 312,100
• • Median Household Income: $70,435

 

Vacancy

The current vacancy rate of 4.1% marks a 0.6% change year-over-year, and it is in line with the national vacancy of 4.3%. A small number of notable leasing opportunities across the metro contributed to this slight vacancy change. There are only a few properties that fit the needs of tenants in the 10,000 to 20,000 square foot range. As such, the most notable leases in Q2 2025 occurred for properties over 20,000 square feet. O’Reilly Auto Parts and ChipShot accounted for the top leases, with 36,772 and 28,362 square feet absorbed, respectively.

 

Supply and Demand Dynamics

Source: CoStar Group, Inc.

 

Rent

Rent growth is positive across Daytona Beach, with a 2.9% year-over-year change. The metro notes an asking rent of $19.89 per square foot, with the highest rent located in the North Daytona Beach submarket at $21.52. Rents are highest here due to its enticing location and proximity to sites like Daytona International Speedway. Moving forward, rent growth is expected to slow to 2% by year-end.

 

Rent Activity

Source: CoStar Group, Inc.

 

Upcoming Developments

• • Fresh Market: Moving into a 26,000-square-foot location in The Cays.
• • Sprouts: A new 23,250-square-foot store at Shoppes at Williamson Crossing.
• • Trader Joe’s and HomeSense: New tenants at Tomoka Town Center.

 

Sales

Transactions for 2024 noted the highest level achieved in the past 10 years. Now, the 12-month transaction level totals $222 million, below the 10-year annual average. Pricing is on the rise, with a sales price of $187 per square foot. The largest sale in the second quarter occurred at Ocean Village Square in the South Beach Cities submarket. The neighborhood center sold for $8.4 million, or $139 per square foot.

 

12-Month Sales Volume & Sale Price per SF

Source: CoStar Group, Inc.

By the Numbers

Q2 2025 | Source: CoStar Group, Inc.

• • SF Delivered: 5K
• • SF Absorbed: -73.3K
• • SF Under Construction: 9.2K
• • Vacancy Rate: 4.1%
• • Rent Growth: 3.4%
• • Market Asking Rent Per SF: $19.89