Q4 Dallas-Fort Worth Retail Market Report
Market Overview
Dallas-Fort Worth leads the nation in economic and demographic growth. The formation of new households, coupled with rising incomes, is anticipated to sustain demand for retail space and contribute to rent growth in the region. The market has been a magnet for corporate relocations and expansions for companies such as Goldman Sachs and Wells Fargo. Due to limited construction and tightening space availability, rent growth in Dallas-Fort Worth has outperformed and is currently outpacing the national average over the past 12 months. Grocery chains, including H-E-B, and discount retailers are expanding in Dallas-Fort Worth, with a focus on areas experiencing demographic growth.
Over the past two years, Dallas-Fort Worth has demonstrated consistent leasing activity, placing it as the national leader for net absorption in the retail market.
By the Numbers, Last 12 Months
- Vacancy Rate: 4.4%
- Deliveries SF: 502,999
- Net Absorption SF: 287,757
- Rent Growth: 4.6%
- Sales Volume: $549M
Market Performance
Asking rents in the Dallas-Fort Worth retail market increased by 4.6% in the past 12 months to the current rate of $23.22 per square foot. Locations such as North Dallas, Uptown, Frisco, and Southlake exhibit average rental rates ranging from $30 per square foot to $45 per square foot, well above the market average. The vacancy rate has decreased by 0.1% in the past 12 months to a rate of 4.4%. There is approximately 5,031,742 square feet of retail space under construction in Dallas-Fort Worth. About 65% of the space underway is in Denton and Collin Counties, with Dallas County accounting for 15%. Sales volume in the past 12 months amounted to $549 million. Investors are particularly interested in shopping centers anchored by grocers, home goods retailers, and discounters.
