It’s no secret that the commercial real estate industry in Texas has been on fire for some time now. The retail real estate sector has certainly not been left out in the cold, executives from JLL told us, focusing on the Dallas, Austin and San Antonio markets.
“The Texas retail market is very robust,” says Clay Smith, an executive vice president at the firm, who is the retail market leader for the Dallas region. The Dallas-Fort Worth market in particular is is strengthening. For one thing, when a retailer new to Texas first makes inroads into the state, Dallas is first on the list.
One retail sector that Smith points to as particularly strong and competitive is the supermarket business. Right now Walmart and regional player H-E-B are vying for the top spot. At the same time, Kroger is building its larger format stores, which average 120,000 square feet, up from its usual 90,000-square-foot prototype, in order to carry more merchandise.
Two specialty players are also coming into the mix, and Texas, specifically Dallas, is where they might have a showdown. While Phoenix-based Sprouts Farmers Market—with two stores in Dallas and upwards of 10 in the market—is looking for more space and is moving east,Greensboro, NC-based Fresh Market—which is mostly in eastern states—is pushing west and wants a Dallas presence. Additionally, Tom Thumb will remain an active player in the grocery industry, due to their presence in the urban core, and their merger with Albertson’s will strengthen their market share.
To learn more about the Dallas, Austin and San Antonio retail market in the full story on GlobeSt.com.