Q4 Market Overview

Nationwide

• Investor Caution & Interest Rates: Despite resilience, high interest rates slowed transaction volumes in 2024, with the Federal Reserve's rate cuts failing to curb inflation as expected.
• Limited Quality Space & Development Hesitation: Demand continued to outpace supply, with little new development and most available retail space being outdated.
• Surge in Store Closures & Vacancy Challenges: Over 7,325 store closures added 100M+ SF of vacancy, pushing retailers to find creative solutions for expansion.
• Election Uncertainty & Market Adaptation: The 2024 election impacted deal-making, but focus now shifts to policy changes and opportunities in 2025.

Dallas-Fort Worth

• Strong Retail Market & Tenant Demand: DFW leads the nation in net absorption (2.4M SF), driven by a strong construction pipeline, with 65% of new developments preleased.
• Suburban Growth & Rising Rents: Most new development is occurring in fast-growing Collin and Denton counties, where tenants are paying premiums for high-quality space, fueling 11 consecutive quarters of 4%+ rent growth.
• Declining Sales Volume & Investor Shifts: Despite strong leasing, retail property sales fell 31% below the five-year average, with private investors now making up 60% of buyers.
• Sustained Economic Strength: DFW leads U.S. metro areas in job growth since 2020, with corporate relocations and an affordable business climate supporting long-term retail stability.

With access to nearly 400 retail markets nationwide, we provide invaluable insight to support your commercial real estate investment goals. Reach out to us today to begin a conversation about how we can help you navigate the complexities of the retail real estate landscape.