North Texas is expanding and growing. So is the retail scene.

Dallas, Texas – Midway through 2024, the retail scene in Dallas-Fort Worth is demonstrating unheard occupancy rates of 95.2%. An influx of grocery stores, which are fast expanding to satisfy the needs of a rising population, is mostly driving this spike. A new analysis by real estate company Weitzman indicates that this pattern reflects the ongoing desire in physical stores all throughout the Dallas-Fort Worth Metroplex.

Executive chairman of Weitzman, Herb Weitzman, commented on the strong market dynamics and said that this record occupancy in 2024 is evidence of balanced principles of the market. The ongoing growth marks the continuance of the increase seen in 2023 when yearly retail occupancy in DFW first exceeded the 95% mark—a trend maintained by continuous population increase and a robust economy.

Courtesy of H-E-B

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The study finds a clear change in the kind of retail driving expansion. Grocery stores, particularly in booming areas like Denton and Collin counties, are at the forefront of this expansion. Based on U.S. Census Bureau statistics, Celina, which is inside these counties, was identified as the fastest-growing U.S. city of its size between 2022 and 2023.

These demographic patterns indicate that, by the end of the year, around 1.9 million square feet of additional retail construction is projected to be built, the greatest degree of new development since 2018. Texas supermarket behemoth H-E-B LP is leading the drive; it now runs 12 shops in the area and intends to open one in Frisco this August. The expansion of major big-box stores including Walmart, Target, and Costco as well as additional stores from well-known companies like Tom Thumb and Kroger are also fueling the growth. Bob Young, managing director at Weitzman, predicts, “2025 and 2026 will likely go down as the ‘years of the grocer.'”

“There is certainly room for additional grocers all across the Metroplex,” he said.

Moving into previously occupied areas, such the new Joe V’s Smart Shop, an H-E-B affiliate, which recently opened in a former Albertsons site in Dallas, specialty grocery chains such Sprouts, H Mart, and Trader Joe’s are making their presence more apparent.

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Interestingly, the spread of grocery stores does not always inspire more retail growth.

“When a grocer goes and builds a new grocery location … whatever they build benefits them and there isn’t a lot of extra retail real estate that’s built,” Young said.

Many of these establishments provide complete services including delis, pharmacies, and barbecue restaurants, therefore lessening the demand for surrounding supplementary retail venues.

Beyond supermarkets, DFW’s retail scene is also being propelled by the appeal of local businesses and entertainment places. Examples of how entertainment is progressively taking front stage in the retail mix are new ideas like pickleball courts and Netflix’s intended “experiential entertainment venue” at Galleria Dallas.

Courtesy of Walmart

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Weitzman analysts point out that retail construction stays rather conservative even with the strong expansion. With home improvement stores, budget department stores, bookstores, dollar stores, and dine-in theaters filling the void left by past tenants, retailers are creatively using second-generation locations. High occupancy rates and energetic retail environments around Dallas-Fort Worth are being maintained in part by this imaginative reusing of space.