Dallas-Fort Worth’s retail sector ended Q4 2025 with steady leasing momentum despite early-year disruptions from major move-outs and a large construction pipeline. Tenant demand strengthened through midyear, helping rebalance supply and keeping vacancy near 4.9%. Competition for quality space remains intense, as less than 20% of the metro’s 7.8 million SF under construction is available for lease. Strong activity in Collin County and grocery-anchored developments continues to fuel rent premiums, pushing many first-generation spaces toward rates above $40/SF. Time-to-lease has fallen sharply as well-located centers quickly secure tenants, particularly near new H-E-B stores. While consumer spending has softened, DFW’s population growth and sustained retailer interest continue to support resilient leasing conditions heading into 2026.
Key Findings
- Dallas–Fort Worth retail closed 2025 with strong tenant demand, posting 791K SF of absorption and keeping vacancy near 4.9% despite a nationally leading 7.8M SF construction pipeline.
- Leasing fundamentals remained competitive, with asking rents rising 3.4% as limited availability and high pre-leasing levels continued to support rent premiums across top-performing retail corridors.
- Investment activity improved, recording $84.1M in sales volume and pricing averaged $276/SF with cap rates around 6.7%, reflecting confidence in DFW’s resilient long-term retail outlook.
DFW Retail Supply & Demand Dynamics
Source: CoStar Group, Inc.
DFW Demographics
Source: CoStar Group, Inc.
- Unemployment Rate: 3.9%
- Current Population: 8,537,509
- Households: 3,106,565
- Median Household Income: $91,830
Dallas–Fort Worth entered Q4 2025 as one of the nation’s most resilient metros, supported by a pro-business climate, diverse industries, and steady population gains. With 8.3 million residents, the region remains a national leader in domestic in-migration, even as broader economic growth moderates. Northern suburbs like Frisco, Plano, and McKinney continue to expand rapidly due to strong schools and relative affordability. Corporate relocations and expansions remain active, strengthened by low business costs and a highly skilled workforce. With 24 Fortune 500 headquarters and deep talent across logistics, finance, defense, and aerospace, DFW sustains strong employment and solid post-pandemic momentum starting 2026.
Population, Labor, & Income Growth
Source: CoStar Group, Inc.
DFW Retail Construction
Dallas-Fort Worth is in the midst of a major retail construction boom, leading the nation with more than 7 million SF underway in 2025, its highest level since 2017. The metro delivered 12% of all new U.S. retail space this year, driven by rapid population growth and demand from grocers, big-box chains, and mixed-use developers. Denton and Collin Counties account for most activity as retailers chase expanding, high-income suburbs like Frisco and Allen. About 85% of space under construction is already pre-leased, limiting vacancy impacts despite the surge. With strong anchors, steady starts, and large projects like Hillwood’s Landmark ahead, DFW’s construction momentum is set to continue into 2026.
SF Construction Starts
Source: CoStar Group, Inc.
SF Under Construction
Source: CoStar Group, Inc.
DFW Retail Sales
Dallas-Fort Worth retail investment rebounded in 2025, with deal volume surpassing $1.2 billion, its strongest showing in two years, and annual sales holding near the pre-pandemic norm of 1,900 transactions. Private buyers dominated more than 80% of activity as institutional groups remained selective. The year’s largest deal was the Nasher-Haemisegger family’s $560 million acquisition of a majority stake in NorthPark Center. Single-tenant net-lease assets and grocery-anchored centers remained top targets, with cap rates ranging from the low-5% area for QSRs to the high-6% range for grocer-anchored centers. Despite slower consumer spending and moderated rent growth, strong demographics and tight vacancies continue to support stable investor demand heading into 2026.
DFW Retail Sales Volume
Source: CoStar Group, Inc.
By the Numbers
Source: CoStar Group, Inc.
- Sales Volume: $84.1M
- Price Per SF: $276
- Cap Rate: 6.7%
- Vacancy Rate: 4.9%
- Rent Growth: 3.4%
- Asking Rent Per SF: $224.98
- Under Construction: 7.8M SF
- Delivered: 595K SF
- Absorbed: 791K SF
