DFW Occupancy Rates Remain high Despite New Retail Construction Dropping
Dallas – Fort Worth has seen a drastic decline in new retail construction. Thanks to old box stores being redeveloped, the retail construction has dropped but occupancy rates still remain steady. The rates have surprisingly increased since this time last year.
Dallas Business Journal states, “The mid-year analysis found that Dallas-Fort Worth’s retail inventory will top 200 million square feet for the first time in its history, and the region is set to hit its sixth consecutive year of occupancy above 90 percent.”
There are both positives and negatives to not having new retail construction. Marshall Mills, president and chief executive officer of Weitzman says, it will continue to support rental rates that we need to be profitable. That being said, having no new developments and high occupancy rates versus new retail construction with low occupancy rates really benefits our market better.
Another reason new construction projects are low is due to the cost and also properties being redeveloped are already in prime locations. Dallas – Fort Worth still shows a promising future for the real estate market. Once the older properties get leased up again more construction projects will pop back up.
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