CBRE: DFW retail 1Q 2014
DALLAS-FORT WORTH – Retail occupancy climbed to a record high level in first quarter 2014, according to CBRE’s 1Q 2014 Retail Marketview.
Total net absorption was positive in DFW for the 15th consecutive quarter in 1Q 2014, driving vacancy down to 8.1 percent and placing upward pressure on rental rates.
Given solid demand for new retail space in DFW, it comes as no surprise that construction activity increased during 1Q 2014. Over 730,000 sf of retail space broke ground in 1Q 2014, bringing the amount under construction up to 2.6 million sf.
Elevated occupancy and an increasingly landlord-favorable market has caused DFW’s average asking lease rate to tick upward yet again in 1Q 2014, increasing by $0.59 per sf over the quarter to reach $13.82 per sf. Over the past 12 months, this rate has increased by $0.90 per sf.
Total retail sales in DFW grew 7.1 percent over the past year, and DFW per capita income, at $46,755, grew 1.5 percent from 1Q 2013 to 1Q 2014, according to Moody’s Analytics.
Below are the five submarkets in DFW with the lowest vacancy rates.
| Market | Net Rentable SF | Total Vacant SF | Total Vacant | Avg. Asking Rent | 2014 YTD Total Net Absorption |
| East Dallas Outlying | 3,418,286 | 129,640 | 3.8% | $19.40 | -9,765 |
| Central Dallas | 9,264,531 | 472,101 | 5.1% | $18.44 | 5,071 |
| Near North Dallas | 22,467,322 | 1,414,634 | 6.3% | $14.93 | 3,413 |
| Southeast Dallas | 13,266,253 | 901,427 | 6.8% | $11.79 | 43,776 |
| Mid-Cities | 49,659,886 | 3,499,801 | 7.0% | $13.87 | 250,065 |
| TOTAL Dallas | 179,032,450 | 14,963,586 | 8.4% | $14.58 | 562,748 |
| TOTAL Fort Worth | 94,730,590 | 7,314,795 | 7.7% | $12.36 | 598,515 |
| TOTAL DFW | 273,763,040 | 22,278,381 | 8.1% | $13.82 | 1,161,263 |
Source: CBRE Research
Read more at CBRE. For more information on retail and other sectors, see DFW Market Data Sources.
You might also like
TG Magazine
Check out the latest issue of our flagship publication.