The Dallas-Fort Worth retail market remained one of the nation’s most resilient in Q3 2025, supported by robust population growth, corporate relocations, and strong tenant demand. Vacancy held tight at 4.9% as net absorption reached 1.8 million SF over the past year, with grocery-anchored centers leading leasing activity. Rents climbed 4.3% annually to an average of $25.15/SF, driven by limited supply and premium pricing in new developments. Construction remained elevated at 6.9 million SF, concentrated in Collin and Denton Counties, while sales volume totaled $97.7 million amid cautious investment conditions. Northern suburbs like McKinney, Allen, and Frisco continued to dominate growth, sustaining DFW’s position as a retail leader.
Key Findings
- Dallas-Fort Worth recorded $97.7M in sales volume with assets trading at $281 per SF, reflecting reduced activity but continued investor interest.
- Market fundamentals remain tight, with a vacancy rate of 4.9% and cap rates averaging 6.6%, signaling resilient demand despite softer sales.
- Annual rent growth of 4.3% keeps Dallas-Fort Worth among the nation’s leaders, fueled by limited supply and strong tenant appetite for quality space.
Dallas-Fort Worth Retail Supply & Demand Dynamics
Source: CoStar Group, Inc.
DFW Demographics
Source: CoStar Group, Inc.
- Unemployment Rate: 3.9%
- Current Population: 8,531,440
- Households: 3,131,536
- Median Household Income: $89,684
In Q3 2025, the Dallas-Fort Worth economy is one of the most dynamic in the nation, supported by strong population growth, corporate relocations, and a diversified employment base. The region continued to attract domestic migration, particularly to fast-growing Collin and Denton Counties, while maintaining its position as a top hub for Fortune 500 headquarters. Financial services expanded with major firms deepening their presence, while Fort Worth strengthened its role in logistics, defense, and aerospace. Despite a slight moderation in employment growth, DFW’s diverse economy, relative affordability, and central location positioned it to remain resilient against broader economic headwinds.
Population, Labor, & Income Growth
Source: CoStar Group, Inc.
Dallas-Fort Worth Retail Construction
Dallas-Fort Worth leads the nation in retail construction, with 6.9 million SF underway, equal to 1.5% of inventory. Developers are averaging 1.9 million SF in quarterly starts, focusing on large-format spaces and suburban shopping centers. About 65% of construction is in Denton and Collin Counties, targeting fast-growing cities like Frisco, Allen, McKinney, and Prosper. Major players include H-E-B and Costco, the latter opening a 160,000 SF store in Prosper. Roughly 70% of projects are pre-leased, many as build-to-suit for national retailers. Mixed-use projects like The Farm in Allen and Fields West in Frisco add high-profile tenants, while strong demand limits vacancy impacts.
SF Construction Starts
Source: CoStar Group, Inc.
SF Under Construction
Source: CoStar Group, Inc.
Dallas-Fort Worth Retail Sales
Dallas-Fort Worth retail deal volume reached $739 million over the past year, the lowest since 2010 and well below the pre-pandemic average of $1.4 billion. Transaction counts dropped 31% in comparison to the five-year norm as many investors remain on the sidelines until lending conditions and capital markets clarity improve. Private investors now dominate, making up 60% of buyers compared to 45% before 2020, while institutional investors and REITs scaled back amid tighter debt markets. Single-tenant net lease deals, such as convenience store properties, are popular targets with cap rates rising about 100 basis points to the mid-to-high 6% range. Grocery-anchored centers also gained attention, including Weitzman’s purchase of Arapaho Village.
Dallas-Fort Worth Retail Sales Volume
Source: CoStar Group, Inc.
By the Numbers
Source: CoStar Group, Inc.
- Sales Volume: $97.7M
- Price Per SF: $281
- Cap Rate: 6.6%
- Vacancy Rate: 4.9%
- Rent Growth: 4.3%
- Asking Rent Per SF: $25.15
- Under Construction: 6.9M SF
- Delivered: 903K SF
- Absorbed: 407K SF
