REAL ESTATE Weitzman report shows record year in DFW retail market in 2022
FRISCO’S KEY TENANTS IN 2022 About 5.7 million square feet of existing retail space has been leased in 2021 and 2022. Weitzman’s annual forecast highlighted notable leases in existing and new retail spaces across Frisco. 1 Dick’s Sporting Goods opened a new warehouse sale store at 5550 Preston Road. 2 Crunch Fitness opened a new gym at 3865 Preston Road. 3 Rodeo Goat opened its first Frisco location at 3111 Preston Road. 4 Bonchon opened its first Frisco location at 4760 Preston Road, Ste. 228. 5 H-E-B opened its first store in DFW at 4800 Main St. 6 Life Time Frisco opened a fitness facility at 4900 Throne Hall Way.
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Revitalizing retail centers was essential to 2022’s success in Dal- las-Fort Worth’s real estate market, according to the annual forecast by Weitzman. The Texas-based real estate firm reported occupancy rates in Dal- las-Fort Worth that exceeded 94% in 2022 for the first time since 1990 when the company started. Weitzman’s annual forecast was held Jan. 10 in the George W. Bush Presidential Center in Dallas. The forecast’s data is based on 1,400 shopping centers totaling more than 200 million square feet across the metroplex. The report found occupancy rates, which refers to the amount of filled leasing space in developed retail areas, reached 93.8% in Dallas and 95.6% in Fort Worth. Occupancy rates were 96.5% in Austin, 95.1% in Houston and 94.5% in San Antonio. “2022 is truly a year for the record books,” Weitzman Executive Manag- ing Director Robert Young said. Retail spaces are broken down into five categories in the presentation: communities, neighborhoods, malls, mixed-use and power centers. A community center features real estate space for daily needs and is anchored by a grocery store. These centers hit 95.2% occupancy in 2022, according to the report. Neighborhood centers reached 94.3% occupancy, the report showed. These centers provide consumer options with takeout and drive-thrus, Young said. Malls BY COLBY FARR & HANNAH JOHNSON
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reached 90.7% occupancy. Mixed-use is a small, but active category with 95.2% occupancy, he said. Power centers anchored by big- box retailers are at 94.8% occupancy. “Retail succeeds when it continu- ally transforms to meet the consum- er’s preference for convenience and experience,” he said. Grocers dominated in 2022, with 40% of all new space developed going to grocery stores, per the report. H-E-B was prominent in the area’s grocery growth with new Frisco and Plano locations as well as a store coming soon to Fort Worth. Young said occupancy could reach 94.5% in 2023 and 95.5% in 2025. For absorption, meaning tenants moving out of spaces and others moving in, the forecast expects growth from 1.5 million square feet of net leasing in 2023 to 2.5 million square feet in 2025. While rising costs has slowed construction, Young said 1 million square feet is expected to be developed in 2023. The event also included an inter- view with Weitzman Executive Chair Herb Weitzman and Crow Holdings CEO Michael Levy. Weitzman and Levy discussed e-commerce’s effect on the market, the shift from success in office space to retail and the growth of demand in Texas. Levy said the abundance of land in Texas will continue to benefit real estate and retail. “The demand is going to continue to come,” he said. “People are going to continue to move here.”
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RECORD YEAR FOR RETAIL IN DFW Weitzman reported the highest occupancy rate and lowest total of new construction in DFW’s retail market since it first started surveying the market in 1990.
2020
2021
2022
Square feet of retail space
Square feet of new construction
200M
1.7M
200.2M
640K 604.7K
199.6M
Occupancy rate (of existing retail space)
91.7%
93.5%
94.4%
COMPARING FRISCO’S VACANCY RATES Frisco’s retail vacancy fell by about 2.4 percentage points between 2021 and 2022, according to Weitzman’s 2023 report.
2021
2022
Gross retail space (measured in square feet) Vacancy (measured in square feet)
10.7M
877.7K
10.8M
624.3K
Vacancy rate (of existing retail space)
8.17%
5.77%
SOURCE: WEITZMAN 2023 TEXAS RETAIL MARKET REPORT/COMMUNITY IMPACT
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FRISCO EDITION • FEBRUARY 2023
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