REAL ESTATE Weitzman report shows record year in DFW retail market in 2022
NORTHEAST TARRANT COUNTY’S KEY TENANTS IN 2022 About 5.8 million square feet of existing retail space across Dallas-Fort Worth has been leased in 2021 and 2022. The real estate report highlighted notable leases in existing and new retail spaces across northeast Tarrant County. GRAPEVINE 1 Popshelf is slated to open a new 9,658-square-foot location at Grapevine Towne Center in 2023.
COLLEYVILLE 5 Look Dine-in Cinemas opened a 37,000-square-foot location at Town Center Colleyville in 2022. SOUTHLAKE 6 West Elm opened an 11,000-square- foot space in the Park Village shopping center in 2022. 7 Mesero opened a new location at Shops of Southlake in 2022. 8 Cork & Pig Tavern opened a new location at Shops of Southlake in 2022.
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 in the compa- ny’s history since starting in 1990. Weitzman’s annual forecast was held Jan. 10 in the George W. Bush Presi- dential 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, the report stated. Neighborhood centers reached 94.3% occupancy. These centers provide consumer options with takeout and drive-thrus, Young said. Malls reached 90.7% occupancy, the BY COLBY FARR & HANNAH JOHNSON
report stated. Mixed-use is a small, but active category with 95.2% occupancy, he said. Power centers are anchored by big-box retailers and are at 94.8% occupancy. “Retail succeeds when it continu- ally transforms to meet the consum- er’s preference for convenience and experience,” Young said. Grocers dominated in 2022, with 40% of all new space developed going to grocery stores, he said. H-E-B was prominent in Dallas-Fort Worth’s grocery growth with new locations in Frisco and Plano. Young said occupancy is expected to reach 94.5% in 2023 and 95.5% in 2025. For absorption, meaning ten- ants moving out of spaces and others moving in, the forecast expects 1.5 million square feet of net leasing in 2023. While Young said construction has slowed due to rising costs, 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 with land in every direc- tion, Texas will continue to see high demand for real estate and retail. “The demand is going to continue to come,” he said. “People are going to continue to move here.”
2 Meow Wolf is opening its first Texas location at Grapevine Mills in summer 2023 in a 29,000-square-foot space. 3 Macy’s Backstage backfilled a former 22,000-square-foot space at Grapevine Mills when it opened in 2022. 4 Chama Gaucha Brazilian Steakhouse is slated to open a 12,100-square-foot location in Grapevine at a second- generation restaurant space in 2023.
RECORD YEAR FOR RETAIL IN DFW Weitzman reported the highest occupancy rate and lowest total of new construction space in Dallas-Fort Worth’s market since it started surveying the market in 1990.
2020
2021
2022
Square feet of new construction
Square feet of retail space
200M
1.7M
640K 604.7K
200.2M
199.6M
Occupancy rate (of existing retail space)
91.7%
93.5%
94.4%
COMPARING TARRANT COUNTY VACANCY RATES Retail vacancy fell by about 54.7% between 2021 and 2022 in northeast Tarrant County, according to Weitzman’s 2023 report. Grapevine, Colleyville, Southlake, Keller and Roanoke’s retail figures are included.
2021
2022
Gross retail space (measured in square feet)
Vacancy (measured in square feet)
9.8M
485.3K
9.4M
211.1K
Vacancy rate (of existing retail space)
4.92%
2.23%
SOURCE: WEITZMAN 2023 TEXAS RETAIL MARKET REPORT, TEXAS DEPARTMENT OF LICENSING AND REGULATION/COMMUNITY IMPACT
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GRAPEVINE - COLLEYVILLE - SOUTHLAKE EDITION • FEBRUARY 2023
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