April 22, 2026
Queens had a standout year in commercial real estate in 2025, and mixed-use property owners sitting on assets along the borough's major corridors are in a stronger position than many of them realize. Here is a full breakdown of what the data shows, what shifted from 2024 to 2025, and what the trends mean heading into 2026.
The 2025 Queens Mixed-Use Market by the Numbers
According to Matthews Real Estate Investment Services' Queens Market Report for 2025, a total of 117 mixed-use transactions closed in Queens in 2025, generating significant volume across the borough. The average price per square foot for mixed-use properties landed at $484, while retail properties traded at an average of $697 per square foot. Transaction volume for retail specifically jumped 32% from 2024, with 48 retail properties sold generating $257.23 million in total volume.
One of the most telling data points from the Matthews report was buyer behavior. Of the 117 mixed-use transactions in 2025, only five involved rent stabilized buildings. Free market buildings were overwhelmingly preferred, and the most aggressively priced deals of the year involved buildings with vacant retail spaces. Owner-users paid an average of 22% more than traditional investors for properties where they could occupy the commercial unit while collecting residential income above. That premium tells you something important: the demand is not just from institutional investors hunting yield. It is coming from operators and small business owners who want to control their space.
The Neighborhoods Driving Activity
Astoria emerged as the top-performing Queens neighborhood for mixed-use transaction velocity in 2025, recording 23 mixed-use transactions and 6 retail deals per the Matthews report. Long Island City continued drawing institutional capital, anchored by its proximity to Midtown and the approval of the OneLIC plan, which will allow 14,000 new residential units in the area. As Matthews notes, Long Island City is set to maintain top performance levels throughout 2026 given the concentration of major employers and growing life sciences presence.
Ridgewood deserves particular attention. According to the same Matthews report, Ridgewood saw rent growth of 6.68% in 2025 and has experienced accelerating interest from buyers priced out of Brooklyn. The arrival of Whole Foods on Myrtle Avenue and increased development activity along Wyckoff Avenue have created sustained upward pressure on both rents and property values in a neighborhood that still trades at a meaningful discount to its Brooklyn neighbors.
Elmhurst recorded one of the highest rent increases in all of Queens in 2025, with average rents rising 11.7% year over year. Its access to the 7, M, and R trains and its dense, multi-generational tenant base make it one of the more durable income plays in the borough for mixed-use owners.
What Changed From 2024 to 2025
The most significant shift was in investor selectivity. Per REbuild's 2025-2026 NYC market forecast, buyers became increasingly focused on properties with clean income profiles, legal unit configurations, and genuine value-add upside. Overpriced or over-encumbered listings sat. Well-priced assets with strong fundamentals moved quickly.
Financing strategy also separated deals from non-deals. With mortgage rates stabilizing in the mid-6% range, buyers who came to the table with creative structures, larger down payments, or seller financing conversations were the ones closing. Cash remained king on smaller mixed-use deals, particularly below $2M.
The 2026 Outlook for Queens Mixed-Use
Queens showed the strongest inventory growth of any NYC borough in mid-2025, up 14.9% year over year, which heading into 2026 means more options for buyers but also more competition for sellers. Properties that are priced on aspiration rather than data are going to sit.
The macro tailwind for Queens mixed-use owners remains strong. Mixed-use and transit corridor projects are listed among the primary drivers boosting interest in emerging pockets of Queens in 2026, and the borough's fundamental demand story is intact. High renter concentration, compressed inventory of quality free-market buildings, and continued migration from Brooklyn and Manhattan all point to sustained value for owners of well-located mixed-use assets.
If you own a mixed-use property in Queens and are thinking about your options in 2026, the window is not closed. But the market is more discerning than it was two years ago.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
