September 15, 2025

Texas Retail Construction: A Flourishing Landscape

News Summary

Texas is experiencing a retail construction boom, with 17 million square feet of projects underway. The Dallas-Fort Worth area leads the way, driven by population growth and demand for new stores. Despite challenges like employee shortages, Texas accounts for nearly one-third of the U.S. retail construction activity, indicating a strong economic outlook and robust development pipeline in major cities like Austin and San Antonio.

Texas has been identified as the leading state in the nation for new retail construction, according to a recent report by the commercial real estate group Colliers. The report reveals that Texas has an impressive 17 million square feet of retail construction currently underway, significantly outpacing other states.

The Dallas-Fort Worth (DFW) area is at the forefront of this retail construction boom, accounting for more than 41% of the total retail construction in Texas, which amounts to approximately 7.2 million square feet expected to be under construction. The ongoing expansion reflects a strong demand for new retail space fueled by a growing population and increased inbound migration to the region.

Key cities within Texas that are experiencing notable retail development include Dallas, Austin, San Antonio, and Houston. North Texas, in particular, has emerged as the epicenter of the state’s retail boom, with a significant number of new construction projects breaking ground. This robust expansion is evident in the recent opening of a new Kroger store in Plano, which has tailored its product offerings to better serve the area’s Asian population. Furthermore, Kroger’s ongoing construction plans indicate a commitment to expanding its presence in north Fort Worth, Anna, Little Elm, and Aubrey, contingent on budgetary considerations.

The DFW retail expansion also includes other businesses establishing new locations, particularly near Kroger along State Highway 121 and Coit Road. The surge in development is closely linked to the region’s increasing population and migration patterns, which create a rising demand for grocery stores, luxury goods, and large-format retail establishments.

Despite this surge in construction activity, challenges remain. There are pressing concerns regarding employee shortages and escalating land and property taxes, which may pose hurdles for retailers trying to establish or expand their operations in the DFW area. The Colliers report notes that the current retail expansion signifies a shift away from conservative development philosophies to unprecedented construction activity focused on accommodating the rapid growth in demand.

In contrast to Texas, national retail construction levels are historically low, with only 48 million square feet of retail space under construction throughout the United States. This statistic underscores Texas’s dominance in the retail construction sector, as the state’s activity accounts for nearly one-third of the national total.

Austin is showcasing a particularly healthy retail market, with occupancy rates soaring to 97.1% and 2.8% of its retail inventory currently under construction. Houston’s retail sector also reflects strong market conditions, displaying robust fundamentals with a development pipeline of 3.6 million square feet. Meanwhile, San Antonio has recorded its highest construction activity in years, with 1.7 million square feet of retail development recently undertaken.

The rent prices across the DFW region have seen an annual increase of 4.1%, further indicating developer confidence in the area’s economic stability and supporting new construction endeavors.

The Colliers report points to Texas’s emergence as a leader in retail construction, attributing this growth to a combination of rapid population increases, a business-friendly regulatory environment, and the capacity for large-scale developments that many coastal markets struggle to sustain. This complex blend of factors positions Texas as a pivotal player in the ever-changing landscape of U.S. retail development.

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Author: STAFF HERE GEORGETOWN

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