McKinney | March 2025

Real estate

BY COLBY FARR CONTRIBUTIONS BY SHELBIE HAMILTON

McKinney sees over 6% increase in commercial space in 2024

Grocery stores drove new construction in Dallas-Fort Worth’s retail market while the area maintained its occupancy record set in 2023, according to Texas-based real estate rm Weitzman’s latest annual forecast. In McKinney, new businesses such as Planet Fitness contributed to a growing retail market. In 2024, McKinney also saw a newly constructed Sprouts Farmers Market open along US 75, which follows the Weitzman forecast trends. The full story Dallas-Fort Worth nished 2024 with a retail occupancy rate of 95.1%, 2.4 million square feet of space absorbed and 1.5 million square feet of new construction, according to the report. The occupancy rate in 2024 matches the record previously set in 2023 and continues an 11-year run of occupancy rates measured above 90%. Inventory increased to 199.9 million square feet in 2024, while vacancy hovered around the same

level as the previous year, according to the report. New development remained conservative despite the increase from 1 million square feet delivered in 2023, Weitzman Executive Managing Director Robert Young said. “This limited development is another reason our retail market remains so tight and that leasing is so strong in existing centers,” Young said. In 2025, the report projects retail occupancy will grow to 95.6% with 2.7 million square feet of space absorbed and 2.7 million square feet of new construction delivered, with the construction driven by new stores from Kroger, HEB and other anchor retailers. “DFW’s retail market has never been stronger in terms of balanced supply and demand,” Young said. “Retail development today is truly based on the fundamentals of population growth, housing growth, job growth and economic viability. This is clearly a recipe for sustainable high occupancy.”

Weitzman Executive Managing Director Robert Young speaks during the 2025 Weitzman Annual Forecast.

COURTESY WEITZMAN

McKinney’s commercial real estate in square feet Leased Vacant 5,154,649 total square feet of commercial space

98.2%

5,483,649 total square feet of commercial space

98.33%

Year-over-year increase of 329,000 square feet or 6.38%

SOURCE: WEITZMANCOMMUNITY IMPACT

MCKINNEY EDITION