|Supermarkets like this new Kroger in|
Wylie accounted for the biggest share of new North Texas retail
space in 2013. (DMN files)
“Our occupancy rate is now 90 percent. – this has been a goal for our marketplace,” said Bob Young, managing director of Dallas retail real estate firm Weitzman Group. “We are backfilling existing retail space at a good clip.
“This is a good turnaround from 2010 when we faced hundreds of thousands of square feet of vacant space from defunct retail concepts,” Young said Wednesday at Weitzman Group’s annual retail market update. “We cut our supply of vacant boxes almost in half in the last two years.”
Net retail leasing in the D-FW area added up to about 2.7 million square feet in 2013.
In the last four years, shopping center and retail building vacancies in North Texas have fallen by about 4 million square feet.
At the same time, very little new shopping space has been added to the market.
In 2013, developers and retailers opened less than 2 million square feet of D-FW of new store space.
That’s about half the average during the last decade.
“In the early 2000s, we used to add that much space in just one single submarket,” Young said.
The largest chunk of the retail building in North Texas last year was grocery stores and strip centers anchored by new supermarkets.
“The big driver today continues to be the grocery stores,” Weitzman Group CEO Herb Weitzman said.
And the supermarkets are taking a bigger share of the shopping market, he said.
“The shops that used to be outside the grocery story is now inside,” Weitzman said. “The developer today builds less shopping space because of the departments inside the grocer.”