DFW: strong economy sets off retail actionDFW: strong economy sets off retail actionhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=7252015-06-16T07:45:00Z2015-06-16T00:00:00Z

DALLAS-FORT WORTH - Retail vacancy continues to drop in North Texas, with developers seeing strong preleasing of new space according Marcus & Millichap’s market stats for second quarter 2015.

Much of the new space — concentrated outside of I-635 continuing west up the Northwest Parkway 114 through Southlake, and down I-35 West into the Alliance Texas master-planned community — is being built within mixed-use projects like Frisco Station and Wade Park.

Cap rates are projected to be at “historically low levels,” with single-tenant rates in the 6 percent range and multitenant near 7 percent for the rest of the year, due to low interest rates and strong buyer competition.

Average asking rents are projected to grow by 2.6 percent year over year in 2015, slightly less than the 2.8 percent uptick in 2014. This year will see a continued decline in vacancy.

Local market highlights:

• In addition to Nebraska Furniture Mart’s large showroom and distribution center at the Grandscape mixed-use development in The Colony, the project will contain nearly 4 million sf of retail, dining, entertainment and attractions.

• The City of Allen approved plans for a new hotel and convention center at Watters Creek. The development will consist of 290 guest rooms, a 64,500-sf convention center and 1,000-car parking garage.

• Alamo Drafthouse is planning to open its second Dallas area movie theater in the Cedars neighborhood, capitalizing on the increasing number of residents living on Lamar St., and in downtown and Uptown Dallas. The 30,000-sf theater will include an upstairs bar with a patio and stage.

• San Antonio-based grocer H-E-B has been buying land in the Dallas/Fort Worth metro, acquiring at least 12 locations throughout the Metroplex. The grocer currently has no plans to open storefronts in the near future; however, these holdings indicate it could be making a push into the metro soon, joining several other grocery chains expanding in the region.

tag: Dallas-Fort Worth-Arlington Market Research, Dallas-Fort Worth-Arlington NewsTalk

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