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025 saw Long Island’s retail and development scene shift dramatically. Wegmans opened its first 101,000‑sq‑ft store at 3270 Middle Country, Lake Grove, after a $15.3 million purchase of an 8.5‑acre site. The chain plans three or four locations on the island, targeting 100,000‑sq‑ft supermarkets. Trader Joe’s bought a 66‑acre former CA site in Islandia for $118.5 million, building a 921,000‑sq‑ft distribution center that could create up to 800 jobs and support its existing seven stores. Rite Aid’s rent defaults in April led to the closure of all 13 Long Island stores, a consequence of its post‑bankruptcy restructuring that trimmed its national footprint to about 1,400 outlets.
New entrants added to the mix. Doherty Enterprises will launch the island’s first Jinya Ramen Bar in Lake Grove and a second in Massapequa Park. Rocco’s Tacos & Tequila Bar opened a 5,500‑sq‑ft location at Walt Whitman Shops, its first on the island. Dave’s Hot Chicken opened a 2,555‑sq‑ft spot in Carle Place, with plans for 14 sites (seven on Long Island, seven in Queens). Joe & The Juice leased 2,769‑sq‑ft and 2,249‑sq‑ft stores in Woodbury and Manhasset, respectively, slated to open next year. Pickleball continued its expansion: The Picklr opened a 33,900‑sq‑ft club at 231 Centereach Mall, and Pickleball Heaven launched a 55,700‑sq‑ft complex at 645 National Blvd., featuring 18 courts and a 60‑ft bar.
Development projects pushed forward amid rising construction costs, financing pressure, and regulatory hurdles. Nord Development’s $160 million Carriage House in Patchogue will add 262 apartments across two five‑story buildings on a 4.08‑acre site, include a 32,570‑sq‑ft riverwalk, and provide 410 parking spaces. Alpine Residential’s $97 million Westbury TOD will bring 187 units to a 1.91‑acre parcel across from the LIRR station, while Gotham Organization proposes a $100 million mixed‑use building on a 1.92‑acre MTA parking lot, adding 157 apartments and 15,000 sq‑ft of retail. Heatherwood Luxury Rentals’ Heritage on Main will deliver 165 market‑rate units and 3,500 sq‑ft of retail to a former Sears site. Matinecock Court, a $97 million affordable cooperative, opened its 146 units—spanning one‑ to three‑bedroom configurations and reserved spots for veterans and developmental‑disability residents—on a 14.5‑acre site in East Northport, complete with a community building and on‑site sewage treatment.
Taconic Capital closed a $14 million deal for a 13.3‑acre site next to Oheka Castle, aiming to revive a controversial condominium plan that could house up to 190 units. The property’s future remains stalled after a Chapter 11 filing halted a foreclosure sale.
Throughout the year, Long Island’s real estate sector faced high construction costs, tariff‑driven material price hikes, labor shortages, and persistent opposition to new projects. The residential market suffered from low inventory and soaring prices, curbing sales activity and underscoring the need for more housing. Despite these challenges, the island saw significant retail openings, major development milestones, and continued expansion of experiential venues.
