News Summary
Texas has made history by becoming the leader in retail construction in the U.S., with approximately 17 million square feet of retail space currently under construction. This accounts for one-third of the nation’s total retail development, driven by in-bound migration and an economic boom, particularly in the Dallas-Fort Worth area. Other major Texas cities like Austin, Houston, and San Antonio are also experiencing significant retail expansion, reflecting the rising demand for retail space amid population growth.
Texas Takes the Lead in Retail Construction
Texas has become the leader in retail construction for the first time in U.S. history, with approximately 17 million square feet of retail space under construction by the second quarter of 2025. This impressive figure accounts for nearly one-third of the nation’s total retail space being built, which stands at around 48 million square feet.
What’s Fuelling This Growth?
The surge in retail construction across Texas is primarily driven by an influx of residents migrating from other states, bringing significant economic activity with them. The Dallas-Fort Worth (D-FW) area leads the nation with 7.2 million square feet of retail space currently under construction as of the third quarter of 2025. This region is rapidly transforming into an economic powerhouse, poised to compete with coastal markets.
A Closer Look at the Numbers
The DFW area has demonstrated a healthy annual rent price growth of 4.1%, consistently outperforming other Texas metros such as San Antonio and Austin. This trend indicates increasing developer confidence, suggesting that Texas is ready to embrace high-density retail environments like never before.
Nationally, since 2020, only 21 million square feet of newly constructed retail has been listed for lease, representing less than 5% of all available retail space. Elevated financing and construction costs have led developers to shift their focus toward multifamily, industrial, and mixed-use projects, rather than traditional standalone retail spaces.
The Retail Landscape in Other Texas Metros
Austin stands out in the retail construction landscape with approximately 2.8% of its total retail inventory currently under construction and the highest retail occupancy rate among Texas metros at 97.1% as of the last quarter of the previous year. This strong performance suggests that Austin is experiencing a retail boom.
Houston is another active player, with a retail development pipeline totaling 3.6 million square feet. The city’s vacancy rate remains low, fluctuating between 5%-6%, indicating a healthy marketplace. Meanwhile, San Antonio is on the rise, with 1.7 million square feet of retail space under construction, marking its most active period in several years.
Texas’s Retail Expansion and Population Boom
The expansion in retail construction is part of a broader economic transformation influenced by robust population growth, particularly in major cities such as Austin, D-FW, Houston, and San Antonio. As more residents settle in these areas, the demand for retail space continues to rise, driving developers to compete in meeting this escalating need.
In conclusion, Texas’s recent achievements in retail construction highlight a significant shift in the market landscape, fueled by an increasing influx of residents. As this trend continues, Texas is emerging as a prime destination for retail development.
Deeper Dive: News & Info About This Topic
- Dallas News
- VirtualBX
- Chain Store Age
- Houston Chronicle
- D Magazine
- Wikipedia: Real estate development
- Google Search: Texas retail construction
- Google Scholar: Texas retail construction
- Encyclopedia Britannica: retail construction
- Google News: Texas retail development
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
