Skip to main content

Market Report

Dallas-Fort Worth Retail Market Report

2023 Investment Forecast

Suburban Expansion Continues to Draw Tenants;
Investment Staggers in Light of Financing Complexities

Northern residential areas well-positioned to overcome hurdles. Dallas-Fort Worth is projected to add 78,000 new residents this year through in-migration alone, a half-decade high that beats out the next-best market, Phoenix, by 14,000 people. Meanwhile, firms continue to fortify payrolls — albeit, at a slower clip than prior years — enabling the nation’s second-strongest pace of median income growth during 2023. Rising wages and an expanding population suggest that consumption drivers will remain steady, anchoring retailers’ operations. Still, a transitional period may be underway. Elevated construction this year will outstrip a moderate net absorption volume, facilitating rising vacancy and decelerating rent growth. Fundamental softening should be concentrated in urban areas, as lower midweek foot traffic negatively impacts local retailer sentiment. However, the suburbs — particularly those in northern portions of Greater Dallas — are well-positioned to sustain performance improvements, as lower housing costs and density continue to draw residential gains and stoke consumption. North Central Dallas, which includes suburbs like Addison and Frisco, welcomes move-ins from Crunch Fitness and sports retailer 2nd Swing Golf this year, confirming the ongoing growth trend. 
MM Texture Background