Retail Construction Surges in Dallas

Retail construction surges in Dallas, Houston, and Austin, with Dallas leading as the pipeline nears 7M SF and demand stays strong.

April 9, 2026

Nina Dale

Dallas leads US markets, comprising 10% of the national retail construction pipeline.
Nearly 7M KSF of new retail space is underway in Dallas, with almost 5M KSF pre-leased.
Houston and Austin are the next top markets, at roughly 4M KSF and 3M KSF respectively.
Investor interest is strong as the region expands retail offerings and repurposes big box space.

Key Takeaways

Texas Retail Markets Build Momentum

Retail construction remains strong in Texas, with Dallas dominating activity nationwide. According to The Real Deal, CoStar says that Dallas accounts for nearly 7M KSF of the US retail construction pipeline, with most of that space already committed to tenants. Houston and Austin follow as the second- and third-ranked markets, with pipelines of 4M KSF and over 3M KSF, respectively.

Shifting Trends and Steady Demand

Nationally, overall retail construction has slowed since the peak years prior to the pandemic, but Texas defies this trend. The Dallas pipeline represents about 10% of all retail space under construction in the US. Much of the new development centers on strip malls and mixed-use projects, often anchored in fast-growing northern suburbs such as Prosper. Projects like Gates of Prosper attract major brands and steady consumer traffic. This expansion comes as apartment demand in Dallas continues to absorb new supply more efficiently, reinforcing confidence in mixed-use formats tied to residential growth.

Retail Real Estate Drives Investment

Texas’ robust retail construction also draws investor attention. In March, Younger Partners acquired a 375K KSF shopping center portfolio in Fort Worth using a $113.7M loan. The locations are strategically situated near major developments like the billion-dollar North City project, highlighting confidence in continued retail sector growth.

New Tenants and Redefined Spaces

Shifting retail demand is influencing property usage across Texas. Vacant big box storefronts, such as former Party City locations, are being repurposed for experiential retail. Gyms, entertainment concepts, and even Barnes & Noble are making a resurgence statewide. The retail sector’s evolution underpins continued construction activity and a competitive market for well-situated properties.