The retail market in Dallas-Fort Worth is expected to have another strong year in 2025, following the grocery sector's significant contributions to the industry's growth in 2024. The region maintained its record occupancy rate of 95.1% in 2024, matching the previous year's performance, according to a presentation and report on the local market by Weitzman. This positive trend is projected to continue with grocers playing a key role in driving construction and leasing activities.
The overall market is forecast to reach 95.6% occupancy in 2025, based on sites 25,000 square feet and larger. This growth is attributed to major retailers like Kroger, Tom Thumb, H-E-B, Walmart, Whole Foods, and H Mart. 'Our retail market looks great,' said Bob Young, executive managing director at Weitzman, during a presentation at an event in Dallas highlighting the forecast. 'The market has never been stronger in terms of balance and supply. Retail development today is truly based on fundamentals — fundamentals of population growth, housing growth, job growth and economic viability. This is clearly a recipe for sustainable high occupancy.' D-FW's market is attracting investments from grocers and other retailers across the globe, drawn to the region's economic strength. The area added 1.5 million square feet of retail space in 2024, with traditional grocers accounting for nearly half of that increase. 'Without a doubt, 2024 was the year of the grocer,' Young said. 'More and more grocers have now staked their futures in D-FW because our growth warrants it. They’ve taken down new development sites so that means that the grocery activity will continue for years to come.' 2025 is also expected to see significant retail development with 2.7 million square feet of new space, the highest figure since 2018 when 3.5 million square feet was added. Other key drivers in 2024 included large anchor tenants like The Home Depot and Bass Pro Shops along with..