Friday, June 12, 2015

D-FW shopping space vacancies fall as leasing grows

The largest retail project to open this year in North Texas is the new
Nebraska Furniture Mart in The Colony, Texas.
Strong leasing is pushing North Texas shopping center vacancies to the lowest level since before the recession, according to a new report by Marcus & Millichap.
The commercial real estate firm says that only about 7 percent of Dallas-Fort Worth retail space is empty at midyear and vacancies are expected to fall further through the end of 2015.
Almost 90 percent of the retail construction underway in the D-FW area is already rented to tenants, the commercial real estate firm reports.
“Several grocery chains are continuing their expansion in the market, comprising a large share of pre-leased space,” Marcus & Millichap analysts said. “While concerns over low oil prices linger, job growth in the Metroplex will remain above the national rate, encouraging spending and attracting retailers to expand.”
Developers have finished about 4.6 million square feet of new shopping space during the 12 months ending with June.
The largest chunk was in the 560,000-square-foot Nebraska Furniture Mart store in the Colony.
For all of 2015, Marcus & Millichap estimates about 3 million square feet of new shopping space will open its doors in North Texas – about the same as in 2014.”
“Elevated tenant demand is driving strong pre-leasing and will tighten vacancy further in Dallas-Fort Worth this year,” the forecast predicts.
Steve Brown/Dallas Morning News