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CBRE: 2018 outlook good for Metroplex retailCBRE: 2018 outlook good for Metroplex retailhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=188012018-01-12T06:00:00Z2018-01-12T16:00:00Z

​​​​DALLAS – Strong net absorption and heavily preleased deliveries within DFW's tightening retail market caused occupancy to measure an all-time high, reports CBRE in its fourth quarter 2017 market update.

At the end of the fourth quarter, North Texas retail occupancy was at 94.6 percent. More than 5.8 million sf of new space was under construction, down from the previous quarter. Net absorption was at just over one million sf, also down from the previous quarter.

"The year has proven to be a strong one for reta​il landlords and tenants alike, with an expectation of positive sales growth continuing into 2018," the report said.

"Multiple construction projects across North Texas have been sidelined as labor and borrowing costs remain elevated, specifically for those in the early stages. An increase in equity requirements and cost of capital may result in a delay to bring these projects to market, as well as increased tenant sales​ volume expectations to appease lenders."

The pace of absorption in big box retail space slowed throughout 2017 compared with past years, even within Class A product, CBRE reported. As seen in other major U.S. retail markets, elevated supply, at 813,572 million sf, is because of a smaller pool of big box retailers.

Three major local developments celebrated their grand openings recently, accounting for 702,000 sf of delivery and absorption in the Metroplex: Tanger Factory Outlets on Oct. 27, Legacy Food Hall on Dec. 6, and IKEA in Grand Prairie on December 13.

CBRE
Dallas-Fort Worth-Arlington
Retail
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