- DFW retail market posts record 95.3% occupancy for a third consecutive year.
- Austin remains Texas’ tightest retail market, nearing 97% occupancy.
- Houston and San Antonio see strong tenant activity and conservative new deliveries.
- Anchor tenants drive most new retail space across major Texas metros.
Major Metros Lead Texas Retail Surge
According to D Magazine, Texas retail markets continued their growth trajectory in 2025, driven by robust population, housing, and job expansion across key metros. A new market report from Weitzman highlights record or near-record retail occupancy rates in Dallas-Fort Worth (DFW), Austin, Houston, and San Antonio, each reflecting strong regional economies and healthy leasing demand.
DFW led the state with a record 95.3% retail occupancy for the third straight year. Meanwhile, Austin, Houston, and San Antonio also posted strong occupancy levels. Each market also reported rising construction activity anchored by major retailers.
DFW Hits Record Occupancy
DFW closed 2025 with a 95.3% occupancy rate across its 202M SF retail inventory. The market set new records in 2023 and 2024. It broke the record again in 2025. The region’s broader commercial real estate sector has also drawn growing national investor interest as companies expand across North Texas.
Developers delivered about 2.4M SF of new retail space in 2025. That figure rose sharply from 1.5M SF in 2024. However, construction still trails overall demand. Grocery anchors led development and accounted for over 82% of new space.
Austin Maintains Tight Market
Austin again led Texas in retail occupancy, ending the year near 97% on an inventory of 53.9M SF. Active construction hit 1.1M SF in 2025, exceeding the 1M SF mark for the first time since 2016. New space was dominated by anchors such as Lowe’s, H-E-B, and Home Depot, supported by junior tenants in fitness and entertainment segments.
Get Smarter About What Matters in Texas
Subscribe to our free newsletter covering the biggest commercial real estate stories across Texas — delivered in just 5 minutes.
Houston Sees Steady Demand
Houston reported a healthy 95.2% retail occupancy at the end of 2025. Demand was highest among restaurant operators, fitness concepts, medical services, and junior anchors. The market delivered 1.1M SF of new and expanded space in 2025, slightly below 2024’s delivery volume. Despite conservative development, competition for well-located vacancies remains strong.
San Antonio Delivers Growth
San Antonio’s retail market held a 95.3% occupancy, fueled by new construction focused on anchor stores and pre-leased shop space. The market added 561K SF in 2025—up from 423K SF in 2024—mainly through high-profile tenants like DICK’s House of Sport and Topgolf. The city’s strong job and population growth underpins a positive outlook for 2026.
Why It Matters
Texas retail markets continue to outpace much of the country in both occupancy and demand. Anchor-based growth, population influx, and limited new small-shop supply are driving sustained low vacancy rates across the state’s largest metro areas. The outlook for 2026 remains optimistic as fundamentals stay strong and major tenants continue expanding.
