Texas Emerges as the Epicenter of U.S. Retail Growth

A recent CoStar Insight confirms what many investors and developers already sense: Texas is the undisputed leader in U.S. retail construction. All four of the nation’s top retail development markets are within the Texas Triangle, with 14.5 million square feet currently underway.

This surge reflects a unique mix of population growth, suburban expansion, and large-scale urban redevelopment — proving that even in a cautious financing environment, demand for well-positioned retail remains strong.

Dallas–Fort Worth: Scale Meets Luxury

DFW tops the list with 6.8 million SF under construction.Highlights include:

• Fields West in Frisco, a major luxury retail destination.

• Multiple build-to-suit projects for H-E-B and Costco, underscoring the dominance of grocery and value-driven retail in the region.

DFW’s scale, strong demographics, and business-friendly environment continue to fuel both suburban growth and high-end retail projects.

Austin: Retail’s Rising Powerhouse

Austin is in the midst of its biggest retail boom since 2007, with 2.7 million SF under construction.

• 1.24 million SF is set to deliver in 2025, reflecting a major wave of projects.

• Despite the pipeline, occupancy remains strong at 97%, proving the market’s resilience.

Austin is increasingly viewed as a standalone retail powerhouse, driven by rapid population growth, a strong tech ecosystem, and expanding suburban corridors.

Demand Remains Strong Despite Caution

Across Texas, most projects are already 75–80% preleased, showing that tenants remain eager to secure space even as financing remains conservative. This level of preleasing underscores the region’s robust demand and market confidence.

Takeaway

Texas is not just keeping pace with retail growth — it’s setting the pace nationally. From luxury destinations in DFW to grocery-anchored centers in Houston and Austin’s surge into powerhouse status, the Texas Triangle continues to prove why it is the epicenter of U.S. retail development.

For investors, developers, and retailers, the message is clear: Texas is where retail’s future is being built.