Dallas/Fort Worth Retail Market Report
Driven by Single-Tenant Retail, Second Quarter Absorption Was the Largest in Two Years
Single-tenant fundamentals turn the corner. The retail landscape in Dallas-Fort Worth has somewhat settled after a turbulent 2020. Vacancy jumped more than 100 basis points to the upper-6 percent band last year, but the rate has held in place below 7 percent through the first six months of 2021. Single-tenant is rebounding faster than multi-tenant. From April through June single-tenant was responsible for almost 90 percent of total retail absorption, which came in at 1.2 million square feet, the highest posting since the fourth quarter of 2018. As a result of stronger demand, the average single-tenant asking rent climbed above the pre-pandemic level in the second quarter. Recovery hurdles remain, however, more so for the multi-tenant segment where average rental rates dropped roughly 3 percent in the first half.