Dallas-Fort Worth Retail Investment Forecast
Suburbs Capture Outsized Share of Population Boom;
New Consumers Intrigue Tenants and Investors
Retailers are keen on the growth trajectory of northern suburbs. The metro's population is projected to rise by more than 550,000 people over the next five years, an expansion trajectory three times as fast as the national pace. The suburbs, particularly those in the northern portion of the metro, are poised to sustain growth as many homeowners and renters seek out neighborhoods that are less congested than the urban core and closer to their preferred school districts. The Far North Dallas submarket, which encompasses suburbs outside of Interstate 635 like McKinney, Garland and Richardson, has been the top-performing retail area in recent periods. Many tenants are eager to lease space in these fast-growing areas as the demand for goods and services will increase in conjunction with the local resident count. Grocery chain H-E-B will advance its expansion into Dallas by moving into a 75,000-square-foot space in McKinney in 2023. Experiential retailers are committing to the submarket as well, highlighted by Life Time Fitness' plans to occupy a 190,000-square-foot floorplan south of Addison this year.