The full story
Dallas-Fort Worth finished 2024 with a retail occupancy rate of 95.1%, 2.4 million square feet of space absorbed and 1.5 million square feet of new construction, according to the report. The occupancy rate in 2024 matches the record previously set in 2023 and continues an 11-year run of occupancy rates measured above 90%.
“This limited development is another reason our retail market remains so tight and that leasing is so strong in existing centers,” Young said.
“DFW’s retail market has never been stronger in terms of balanced supply and demand,” Young said. “Retail development today is truly based on the fundamentals of population growth, housing growth, job growth and economic viability. This is clearly a recipe for sustainable high occupancy.”
The setup
Officials hosted the 2025 Weitzman Annual Forecast on Jan. 7 at the George W. Bush Presidential Center in Dallas. Young presented a report on how the retail market performed in 2024 with a forecast for 2025.
The report’s data is gathered by surveying more than 1,440 shopping centers across the DFW area.
After the presentation, Executive Chair Herbert Weitzman sat with Dana Telsey, CEO and chief research officer of the Telsey Advisory Group, for a Q&A session.
A video of the presentation and Q&A is available on Weitzman’s Youtube page.
More details
A lot of new space delivered in 2024 was for grocery stores such as H-E-B, Kroger and Tom Thumb, according to the report. The three grocery chains accounted for nearly half of all new construction.
“More and more grocers have now staked their futures in DFW because our growth warrants it,” Young said.
Community shopping centers, a category of shopping center that includes a grocery store anchor, climbed to 96.4% occupancy at the end of 2024. It’s the largest shopping center category measured in Weitzman’s report with 74.4 million square feet across the metroplex.
“That’s a major reason why our entire market is healthy,” Young said. “Our largest category is also our healthiest.”
New space was also delivered for anchor stores such as Home Depot, Bass Pro Shop and Andretti Indoor Karting and Games.
Every shopping center category included in Weitzman’s report posted an occupancy rate above 90% at the end of 2024. Despite closures from Conn’s, Big Lots and Party City, those vacant anchor spaces are being backfilled by a mix of fitness concepts and retailers.
“Our market today is tight enough and strong enough that any well-located vacancy won’t stay vacant for long,” Young said.
