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
In an exciting twist, Texas has become the leader in retail construction for the very first time in U.S. history. This remarkable feat is highlighted in a recent report, which reveals that around 17 million square feet of retail space was bustling with construction activity in Texas by the second quarter of 2025. To put this in perspective, that figure accounts for a staggering one-third of the total retail space being built in the entire country, which is approximately 48 million square feet.
What’s Fuelling This Growth?
The surge in retail construction across Texas is largely driven by a wave of in-bound migration from other states. People are flocking to the Lone Star State, bringing their economic activity with them. The Dallas-Fort Worth (D-FW) area is taking the crown once again, leading the nation with an impressive 7.2 million square feet of retail space currently under construction by the third quarter of 2025. This region is not just a hot spot; it’s undergoing a significant transformation into an economic powerhouse that can compete with coastal markets.
A Closer Look at the Numbers
With a healthy annual rent price growth of 4.1%, DFW has consistently outperformed other Texas metros like San Antonio and Austin. This shows how developer confidence is shifting and maturing, signaling that Texas is ready to support high-density retail environments like never before.
Nationally, since 2020, only 21 million square feet of newly constructed retail has been listed for lease, which is less than 5% of all available retail space. Due to elevated financing and construction costs, we’re seeing a shift in focus as developers increasingly turn to multifamily, industrial, and mixed-use projects instead of standalone retail spaces.
The Retail Landscape in Other Texas Metros
Looking closer at the retail construction scene in Texas’ major metros, Austin stands out with about 2.8% of its total retail inventory currently under construction. Interestingly, it has the highest retail occupancy rate among Texas metros at an impressive 97.1% in the last quarter of the previous year. It’s safe to say that Austin is thriving!
Meanwhile, Houston is actively working on a retail development pipeline totaling 3.6 million square feet. The city’s vacancy rate remains historically low, hovering around 5%-6%, which is quite healthy for such a bustling marketplace.
And not to be overlooked, San Antonio is also experiencing a construction boom with 1.7 million square feet of retail space currently being built. This marks the most active construction period the city has seen in several years.
Texas’s Retail Expansion and Population Boom
This exciting expansion in Texas retail is part of a broader economic transformation driven by strong population growth, especially in major cities like Austin, D-FW, Houston, and San Antonio. As more people settle in these areas, the demand for retail space naturally increases, leading to a race among developers to meet this ever-growing need.
In summary, Texas’s recent achievements in retail construction are not just about numbers; they represent a shift in the market landscape fueled by a robust influx of residents. Who knows what the future holds? But one thing’s for sure: Texas is now the place to be 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 HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris 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 Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
