Dallas-Fort Worth, TX Retail Market Report Q3 2026

Dallas-Fort Worth (DFW) retail demand trailed new supply in Q3 2026: the metro absorbed 1.38 million square feet (SF) while delivering 1.81M SF, even as trailing-12-month sales volume rose 54% to $4.0B. Vacancy is 5.1%, 18 basis points looser than a year ago but 87 basis points below the Q1 2021 peak, and asking rent reached a record $25.56/SF, up 2.1% year over year. This Matthews™ Dallas-Fort Worth, TX Retail Market Report Q3 2026 covers demand, supply, pricing, and investment sales so owners, investors, and retailers can see where DFW retail real estate is tightest.

Key Findings

• Demand improved: DFW absorbed 1.38M SF in Q3 2026 versus 669K SF a year earlier, and 4.65M SF over the trailing 12 months versus 2.26M SF.
• Vacancy is 5.1%, with North Denton County the tightest submarket at 0.8% and North Dallas next at 1.2%.
• Asking rent of $25.56/SF is a record, and North Dallas leads rent growth at +3.0%.
• Q3 deliveries totaled 1.81M SF, 26% above last year’s 1.44M SF. Trailing-12-month deliveries of 6.12M SF are up 18%.
• Investors recorded $4.0B in DFW retail sales over the trailing 12 months (+54%), with pricing at a record $295/SF.

Dallas-Fort Worth Retail Supply & Demand Dynamics

How strong is retail demand in Dallas-Fort Worth?

DFW absorbed 1.38M SF in Q3 2026, roughly double the 669K SF recorded in Q3 2025. Trailing-12-month absorption of 4.65M SF is up from 2.26M SF a year earlier. Vacancy of 5.1% is 18 basis points looser than Q3 2025 because new deliveries outpaced absorption, and asking rent has risen 2.1% year over year to $25.56/SF.

How much new retail space is being built in DFW?

DFW delivered 1.81M SF in Q3 and 6.12M SF over the trailing 12 months, up 18% from the prior 12-month period. Space under construction equals 1.7% of inventory and is concentrated in North Collin County, where it represents 23.2% of existing stock. Annual deliveries peaked at 16.47M SF in 2000. The 8.03M SF pipeline equals about seven quarters of absorption at the trailing pace.

Dallas-Fort Worth Retail Investment Market

What are DFW retail cap rates and pricing?

DFW retail cap rates average 6.86%, down for five straight quarters. Pricing sits at a record $295/SF, higher for 16 consecutive years. Sales volume reached $4.0B over the trailing 12 months, up 54% from the prior period, with $631M closing in Q3. Compressing cap rates and record pricing give owners of stabilized retail a strong case for a sale.

Dallas-Fort Worth Retail Submarket Highlights

Vacancy is lowest in North Denton County (0.8%), North Dallas (1.2%), DFW Airport (1.3%), Rockwall (1.4%), and Southeast Fort Worth (1.8%). Rent growth is led by North Dallas (+3.0%), Park Cities (+2.9%), Southlake (+2.8%), and Dallas CBD/Uptown (+2.6%). Addison/Far North Dallas and Upper Greenville each posted +2.5%.

Dallas-Fort Worth Retail Market by the Numbers

• Vacancy: 5.1%
• Average asking rent: $25.56/SF (+2.1% year over year)
• Q3 2026 net absorption: 1.38M SF
• Trailing-12-month deliveries: 6.12M SF
• Under construction: 1.7% of inventory (8.03M SF)
• Trailing-12-month sales volume: $4.0B (+54%)
• Average cap rate: 6.86%
• Price per SF: $295

Dallas-Fort Worth Retail Market FAQs

What is the Dallas-Fort Worth retail vacancy rate in Q3 2026?

The DFW retail vacancy rate is 5.1% in Q3 2026, up 18 basis points from Q3 2025 and 87 basis points below the Q1 2021 peak of 6.0%.

What is the average retail rent in Dallas-Fort Worth?

Average asking rent in DFW is $25.56/SF in Q3 2026, a record and 2.1% higher than a year ago.

Which DFW submarket has the lowest retail vacancy?

North Denton County has the lowest retail vacancy at 0.8%, followed by North Dallas at 1.2%.

What is the average retail cap rate in Dallas-Fort Worth?

The average DFW retail cap rate is 6.86% in Q3 2026, down for five consecutive quarters.

Previous Dallas-Fort Worth Retail Market Reports

Compare this quarter with prior ones: read the Dallas-Fort Worth, TX Retail Market Report Q1 2026 and the Dallas-Fort Worth, TX Retail Market Report Q2 2026.

The bottom line for owners: record rents, record pricing, and falling cap rates favor sellers of well-located retail, while an 8.03M SF pipeline means vacancy could stay above last year’s level in submarkets with heavy construction. Download the full report above for submarket charts and detail, or contact Andrew Gross, Managing Director in Dallas-Fort Worth, to discuss your property.

Sources: Matthews™ Research, CoStar Group, Inc., RCA, and BLS. Information is for reference only. Sources deemed reliable but not verified.