Dallas-Fort Worth, TX Retail Market Report Q2 2026

The Dallas-Fort Worth economy continued to outperform many major U.S. metros, supported by strong population growth, corporate relocations, and a diverse employment base. While job growth moderated alongside broader economic uncertainty, the region remained one of the nation’s leading destinations for businesses and new residents. Continued household formation and rising incomes have sustained long-term retail demand, particularly across rapidly growing suburban communities. These favorable demographic trends continue to provide a solid foundation for future retail expansion.
 

Key Findings

• Steady leasing activity, continued population growth, and sustained retail interest this quarter offset a modest increase in vacancy.
• Development activity stayed elevated, with new construction concentrated in fast-growing suburban corridors and disciplined preleasing helping limit speculative development.
• Investor demand continued to favor Dallas-Fort Worth’s long-term growth outlook, with institutional and private buyers targeting high-quality retail assets across the market.

 

DFW Retail Supply & Demand Dynamics

Source: CoStar Group, Inc.

 

DFW Demographics

Source: Oxford Economics

• Unemployment Rate: 4.2%
• Current Population: 8,559,459
• Households: 3,109,705
• Median Household Income: $95,430

 

Top DFW Tenants by SF

Source: CoStar Group, Inc.

• Lowe’s
• Life Time Fitness
• Kohl’s
• Kroger

Population, Labor, and Income Growth

Annual Rates of Growth | Source: Oxford Economics

 

DFW Retail Construction

Development activity continued to be supported by strong population growth and retailer expansion during Q2 2026 as strong population growth and retailer expansion continued to support new construction across the metro. Approximately 7.9 million square feet remained under construction at quarter end, with activity concentrated in rapidly growing suburban submarkets. Developers continued to prioritize grocery-anchored centers, build-to-suit projects, and mixed-use developments, while maintaining disciplined preleasing requirements before breaking ground. Most projects underway were substantially preleased, limiting speculative risk despite the active pipeline. Although new deliveries have contributed to higher availability, continued demographic growth and healthy tenant demand are expected to support market fundamentals over the coming quarters.

 

SF Construction Starts

Source: CoStar Group, Inc.

 

SF Under Construction

Source: CoStar Group, Inc.

 

Sales

Dallas-Fort Worth recorded approximately $215 million in retail investment sales during Q2 2026, with average cap rates holding at 6.8%. Grocery-anchored centers, neighborhood retail, and high-quality net lease assets attracted the strongest buyer interest despite elevated financing costs. Institutional participation increased alongside continued private investor demand, reflecting confidence in the market’s durable fundamentals. Pricing remained supported by strong competition for well-located assets as buyers and sellers adjusted to the higher interest rate environment. Transaction activity continued to favor stabilized properties with durable tenant rosters and long-term income streams. Strong demographic growth is expected to support investment activity through year-end.

 

DFW Retail Sales Volume

Source: CoStar Group, Inc.

 

By the Numbers

Q2 2026 | Source: CoStar Group, Inc.

• Sales Volume: $215M
• Price Per SF: $274
• Cap Rate: 6.8%
• Vacancy Rate: 5.1%
• Rent Growth: 2.5%
• Asking Rent Per SF: $25.50
• Under Construction: 7.9M SF
• SF Delivered: 888K
• SF Absorbed: 519K