Texas Retail Market Hits Record Occupancy Across Major Metros
Population growth and grocery-anchored development are keeping Texas retail markets near full occupancy.
Nina Dale
March 12, 2026
Together with
Good morning. Retail occupancy across Texas’ biggest markets remains near historic highs. DFW, Austin, Houston, and San Antonio are all seeing strong demand as limited new supply keeps centers tight.
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Market Snapshot
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Retail Records
Texas Retail Market Hits Record Occupancy Across Major Metros
Image of Bonds Ranch Marketplace in Fort Worth courtesy of Weitzman.
Strong population, housing, and job growth are pushing retail occupancy across Texas’ largest metros to record or near-record levels.
DFW’s record occupancy: DFW reached 95.3% retail occupancy in 2025, marking its third straight record year across roughly 202M SF of inventory. About 2.4M SF delivered during the year—most of it grocery-anchored—while limited small-shop development is pushing tenants like fitness, apparel, and entertainment into existing centers.
Austin remains tight: Austin leads Texas with 97% retail occupancy across about 53.9M SF of inventory. Roughly 1.1M SF delivered in 2025—more than double 2024—driven by anchors like Lowe’s, H-E-B, and Home Depot, along with fitness and entertainment users.
Houston fills vacancies: Houston ended 2025 with 95.2% retail occupancy across about 167.5M SF. Demand from restaurants, fitness, beauty, and medical tenants remains strong, while discounters and specialty grocers are filling larger vacancies. About 1.1M SF delivered in 2025.
San Antonio keeps pace: San Antonio reached 95.3% retail occupancy in 2025 as steady leasing and few closures kept the market tight. About 561K SF delivered—up from 423K SF in 2024—with anchors like DICK’s House of Sport, H-E-B, Academy Sports, and Topgolf driving much of the new space.
➥ THE TAKEAWAY
Retail running hot: Texas retail remains among the nation’s strongest, with population growth and limited new supply keeping occupancy high. Anchor-driven development and tight small-shop availability should sustain demand heading into 2026.
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Around Texas
➥ Downtown Dallas’ growing residential base and shifting office market present a timely opportunity to prioritize walkability and reshape urban streets.
➥ A $700B AI data center surge is driving rapid growth in temporary “man camp” housing for thousands of construction workers.
➥ Rising oil prices are putting Houston developers and lenders in wait-and-see mode amid growing market volatility.
➥ IKEA is opening its first Dallas store, expanding its Texas footprint and evolving its U.S. retail strategy.
➥ One of North America’s largest banks has opened a regional hub in Dallas, reinforcing the city’s growing financial sector.
➥ A new assessment of Dallas City Hall sparked a dispute among council members over the building’s future and renovation costs.
Follow the Money
| IndustrialHouston Mexican steelmaker Ternium selected the Houston area for a new facility, reinforcing the region’s strength as an industrial hub. |
| OfficeDallas CoStar Group is relocating its Dallas office to Ross Tower, highlighting continued demand for upgraded downtown office space. |
| IndustrialBENBROOK Affinius Capital provided financing for Black Mountain’s large DFW industrial acquisition. |
| OFFICEAUSTIN Accesso Partners secured a three-year loan extension and $40M reserve for its 7700 Parmer office campus in Austin. |
| RetailCONROE A Florida investor bought a Montgomery County retail power center, signaling continued interest in Houston-area retail. |
| RetailWebster A Webster shopping center changed hands, highlighting steady investor activity in Houston retail. |
| IndustrialDallas-Forth WorthDemand is rebounding for million-square-foot industrial facilities in Dallas-Fort Worth. |
| IndustrialIRVING Foundry Commercial is planning another office-to-industrial conversion in North Texas. |
| MultifamilyKaty Eaton Vance purchased the 360-unit Elite 99 West apartments in Katy, Texas, financing the deal with a $40M Fannie Mae loan. |
📈 CHART OF THE WEEK
Houston Heights will see no new apartment deliveries in 2026 as high costs and tighter lending stall development.
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