from residents.
Businesses like Mason & Dixie and Texas General Store in Grapevine and Colleyville’s Zafiros Mexican Grill y Cantina and Look Dine-In Cinema all shuttered their doors or moved.
Despite these closures, city off cials with Colleyville and Grapevine said that the economic growth outlook is positive.
Andrea Matteucci, who owns Loveria Caffe in Colleyville, said December 2024 was his best December to date in the nearly 10 years the Italian restaurant has been open in the city’s Town Center.
What's happening?
Rising rent costs are one of the main contributors to businesses relocating or shutting down in Grapevine and Colleyville, city officials said.
That was the case for Texas General Store owner Jessica Cruz, who moved from Main Street in Grapevine due to a jump in rent.
“While it’s easy to see that costs are increasing in all industries, there is a breaking point,” Cruz said. “It wasn’t feasible to adjust our price of goods in order to account for the extreme increased rent rate in such a short period of time.”
Grapevine Chamber of Commerce CEO RaDonna Hessell said there are many reasons under normal circumstances a business closes, even a popular one. Owners retiring, mergers or businesses moving to a spot to fit their scale are why some companies leave their current locations.
Colleyville Center Manager Chelsea Rose said local increased business competition has also led to closures.
The situation
Despite the closures, the sales tax revenue that Colleyville and Grapevine brought in has mostly increased over the last decade.
Grapevine Mills remains a hotspot for new businesses and is where Texas General Store moved in March. In 2024, 13 stores opened or relocated in the mall, said Annie Trevino DiTullio, Grapevine Mills’ account manager.
Rose said there have been 211 new business openings in Colleyville compared to 143 closings over the past five years.
Southlake Town Square consistently sees low vacancy rates, Southlake Mayor Shawn McCaskill said. He added one reason area businesses have done well is because of the city’s relationship with Kite Realty, which leases the buildings in South lake Town Square and other city shopping centers.
“That relationship with Kite and the chamber and the working business community, it takes a lot of work, but it’s worth it,” McCaskill said.
Zooming in
Rent has risen nearly 10% on average per square foot from 2023-24 across Grapevine, Colleyville and Southlake, according to Weitzman Realty.
Their data shows that small-shop spaces in the area average between 1,000 to 2,000 square feet and that the average price per square foot has gone from $24.67 in 2023 to $27 in 2024.
In some areas, that jump has been much higher.
“My rent increased almost double in less than one year,” Cruz said.
Matteucci said his landlord has been flexible with him. Loveria is up for a renewal this year and he said both sides are negotiating a fair rent price.
All three cities have endeavors to aid local businesses throughout the year.
In 2024, events such as Grapefest, Main Street Fest and Christmas festivities brought more than one million people to Grapevine, according to city officials.
Cruz said these events are huge for businesses in the area and supporting elected officials and city leaders is a great way to help local owners.
Colleyville has its annual Stars and Guitars event, which Rose said brings an average of 3,000 to 4,000 people to the city.
The cities also have programs designed to support local businesses. Colleyville enacted its Gift Card Program in 2024, where $35 gift cards are available for residents to support local restaurants. A total of $125,700 was spent at Colleyville restaurants through this program last year.
Southlake Open Rewards is a program where 5% cash back is applied to users who shop at area businesses.
This brought in $1.5 million in economic impact last year, said Dylan Duque, Southlake’s economic development and tourism specialist.
Matteucci said everyone needs to do a small part to invest in their community to see it thrive. “If all of the restaurants and all the small businesses are successful, the sales taxes will be higher and the city can afford more investments,” Matteucci said.
