September 2, 2025

Texas Leads Retail Construction in U.S. History

News Summary

Texas has made history by becoming the leader in retail construction in the U.S., with approximately 17 million square feet of retail space currently under construction. This accounts for one-third of the nation’s total retail development, driven by in-bound migration and an economic boom, particularly in the Dallas-Fort Worth area. Other major Texas cities like Austin, Houston, and San Antonio are also experiencing significant retail expansion, reflecting the rising demand for retail space amid population growth.

Texas has achieved a historic milestone by becoming the leader in retail construction in the United States, according to a recent report by Colliers. With approximately 17 million square feet of retail space currently under construction, Texas now represents about one-third of the total retail space in the country, which is around 48 million square feet as of the second quarter of 2025. This significant development is primarily driven by a surge of in-bound migration from other states, contributing to the robust growth of the retail sector in the Lone Star State.

The Dallas-Fort Worth (D-FW) area stands out as the most active region, with 7.2 million square feet of retail space under construction as of the third quarter of 2025. This area has seen a remarkable shift in developer confidence, transforming into a dynamic economic powerhouse that rivals traditional coastal markets. The region’s annual rent price growth has reached 4.1%, outpacing other Texas metropolitan areas, including San Antonio and Austin.

The current boom in retail construction reflects a maturation of Texas as a viable business destination, capable of supporting high-density retail developments. Despite challenges faced nationally, such as elevated financing and construction costs, which have limited new standalone retail development, Texas continues to thrive, drawing developers toward mixed-use projects.

As of now, the Austin market has 2.8% of its total retail inventory under construction, while D-FW holds 1.5%. Austin leads the Texas metros with the highest retail occupancy rate of 97.1% recorded in the last quarter of the previous year. Houston follows with a substantial retail development pipeline totaling 3.6 million square feet, maintaining a historically healthy vacancy rate of 5%-6%. Meanwhile, San Antonio has witnessed its most active construction period in several years, with 1.7 million square feet of retail space under construction.

Overall, Texas’s current retail expansion is part of a broader economic transformation fueled by strong population growth, particularly in major urban centers such as Austin, D-FW, Houston, and San Antonio. The influx of newcomers from other states significantly impacts local economies and results in heightened demand for retail spaces. Nationally, since 2020, a mere 21 million square feet of newly constructed retail has been listed for lease, accounting for less than 5% of the overall available retail space.

The ongoing construction boom is a testament to Texas’s evolving role in the national retail landscape, showcasing the state’s capacity to accommodate new businesses and support diverse shopping environments in response to population and economic growth. As developers continue to respond to the needs of these expanding cities, the future looks promising for retail spaces across Texas.

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Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.