Thursday, March 19, 2009
Dallas-Fort Worth ranks low on list of top retail real estate markets
Dallas-Fort Worth residents love to shop until they drop.
But two California cities have the best retail real estate markets, according to a new nationwide report.
San Diego and San Francisco get top marks in real estate broker Marcus & Millichap Real Estate Investment Services' just-released national retail index.
Dallas-Fort Worth – which has one of the highest per capita inventories of shopping space in the country – ranks only 26.
Despite big economic slowdowns in California, San Diego and San Francisco were rated the top shopping center markets because of their low vacancies, “allowing owners to keep rent declines modest,” the new report says.
Both San Antonio, No. 24, and the D-FW area moved up on the annual ranking because of “employment forecasts that are far better than the national average.”
“Although job losses in the Metroplex will be minimal in 2009, the local economy will remain comparatively sound during the national recession due to continuing population growth,” the analysts said.
Dallas-Fort Worth had the biggest population gain of any U.S. metropolitan area in 2007-2008.
The report predicts that the D-FW area will have the smallest job fallout of any major U.S. metro area this year.
But the potential for future construction in the retail sector traditionally keeps most Texas cities low on the Marcus & Millichap list.
TOP U.S. RETAIL PROPERTY MARKETS FOR 2008
1. San Diego
2. San Francisco
3. Washington, D.C.
4. San Jose
6. New York City
9. Los Angeles
Other Texas Cities
24. San Antonio
26. Dallas-Fort Worth
SOURCE: Marcus & Millichap Real Estate Investment Services
By STEVE BROWN / The Dallas Morning News