2024 Dallas-Fort Worth Retail Market Report
Key Findings
- Throughout 2024, Dallas-Fort Worth retail properties recorded the highest absorption level in the country at around 3 million square feet.
- Dallas-Fort Worth has marked the most new jobs compared to other metros across the country. The metro added 450,000 employees since March 2020.
- Over 65% of the current retail construction is already pre-leased, highlighting increased demand for retail.
Dallas-Fort Worth Retail By the Numbers
- Sales Volume: $107M
- Average Sale Price per SF: $274
- Cap Rate: 6.6%
- Vacancy Rate: 4.4%
- Rent Growth: 4.3%
- Average Market Asking Rent per SF: $24.47
- SF Under Construction: 4.8M
- SF Delivered: 175K
- SF Absorbed: 214K
Dallas-Fort Worth Demographics
- Unemployment Rate: 4.2%
- Current Population: 8,316,419
- Households: 3,055,660
- Median Household Income: $86,568
Employment in the metro has remained steady as the employment base grew by 1.5% at the end of November 2024. The consistent employment rate can be attributed to the metro adding 153,000 new residents from 2022 to 2023, together with its variety of employment opportunities. Financial service jobs grew the most, increasing by 4% in 2024, and will continue to note an uptick as Goldman Sachs and Wells Fargo construct new campuses in the metro.
Dallas-Fort Worth Retail Market Performance
Dallas-Fort Worth’s retail segment has continued its strong performance as its vacancy rate of 4.4% marks a historic low for the metro. Most absorption for retail space here has been for properties smaller than 100,000 square feet. Many tenants absorbing smaller spaces have been quick service restaurants, such as Dutch Bros and Salad and Go, while gyms and pickleball facilities have contributed to larger leases.
With increased absorption levels in the metro, rent growth has begun to accelerate. Rent levels in Dallas-Fort Worth have outperformed markets across the country as rent growth has averaged 5.0% over the past three years. Rents are currently higher in submarkets like North Dallas, Uptown, Frisco, and Southlake at around $30 to $45 per square foot, while the average rent in the metro is at $24.47 per square foot.
Sales Velocity
Retail transactions in Dallas-Fort Worth have begun to slow, with the number of sales dropping 31% compared to the five-year annual average. Despite the slowdown in transactions, private investors have begun to set their sights on retail properties here. More than half of the buyers in the market are private, and they have begun to target single-tenant properties and grocery-anchored neighborhood centers.
Dallas-Fort Worth Construction
New retail additions in Dallas-Fort Worth are slower than previous years as 4.8 million square feet is on the way. The new construction is made up of mixed-use properties and big-box retailers. More than half of new retail space will be delivered in Denton and Collin counties, due to the influx of new residents to these areas.
