According to a report from real estate company Weitzman, Dallas-Fort Worth’s retail market ended the year 2017 with a 92.5% occupancy rate, further stating that the occupancy was the second-highest that it has ever been in the area in over 30 years.
By the end of 2018, retail occupancy in Dallas-Fort Worth is expected to increase even more, coming out to approximately 93%, according to the report.
The new number is actually a slight decrease from the 2016 number of 92.7%; however, the reasoning for this is the closing of many “legacy department stores” at three of the area’s oldest malls. Plans are currently in place to redevelop the closed spaces. It’s also worth noting that the 19 malls located in Dallas-Fort Worth ended 2017 with a 6.42% vacancy rate.
The report further states that Dallas-Fort Worth’s 690 neighborhood centers had an occupancy rate of 88.8%, which is down from the 2016 number of 89.4%. The area’s 42 mixed centers also had an occupancy rate of 94.3%, which is also down from the 2016 number of 95.6%. Furthermore, 141 power centers ended the year with an occupancy rate of 94.5%, which is down from the previous year’s 95.5%, and 476 community centers had an occupancy rate of 92.7%, which is an increase from the previous year’s 92.4%.
According to the report, 2018 will see North Texas obtain approximately 3 million square feet of brand new construction. This number is actually a decrease from 2017’s 4.2 million square feet within a total of 27 new and expanded retail spaces, including mixed-use projects.
The figures of this projection are said to have been based on Weitzman’s review of the total retail market inventory in Dallas-Fort Worth, which comes out to 197.9 million square feet in projects containing 25,000 or more square feet.
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