September 2, 2025

Texas Leads Retail Construction in U.S. History

News Summary

Texas has made history by becoming the leader in retail construction in the U.S., with approximately 17 million square feet of retail space currently under construction. This accounts for one-third of the nation’s total retail development, driven by in-bound migration and an economic boom, particularly in the Dallas-Fort Worth area. Other major Texas cities like Austin, Houston, and San Antonio are also experiencing significant retail expansion, reflecting the rising demand for retail space amid population growth.

Texas Leads Nation in Retail Construction, Fueled by In-Bound Migration and Population Growth

Texas has emerged as the leader in retail construction for the first time in U.S. history, according to a recent report. As of the second quarter of 2025, approximately 17 million square feet of retail space was under construction in the state, accounting for about one-third of the total retail space under construction nationwide, which stands at around 48 million square feet.

Driving Factors

The surge in retail construction across Texas is primarily driven by a significant influx of in-bound migration from other states. This demographic shift has created a growing demand for retail space, as new residents settle in the state. The Dallas-Fort Worth (D-FW) area, in particular, is leading the nation with 7.2 million square feet of retail space currently underway, signaling strong developer confidence in the region.

Regional Highlights

The D-FW Metroplex is not only the leader in construction but is also characterized by its transformation into an economic powerhouse that rivals coastal markets. The region has experienced impressive annual rent price growth of 4.1%, outperforming other notable Texas metros, including San Antonio and Austin. This upward trend demonstrates the D-FW area’s appeal to both developers and retailers alike.

Austin, while lagging behind D-FW in construction with 2.8% of its total retail inventory under construction, holds the distinction of having the highest retail occupancy rate among Texas metros, standing at 97.1% in the final quarter of the previous year. Meanwhile, Houston has a retail development pipeline totaling 3.6 million square feet, maintaining a historically healthy vacancy rate of 5%-6%.

Additionally, San Antonio has joined the construction boom with 1.7 million square feet of retail space under construction, marking the most active construction period in recent years for the city. The expansion in these major urban areas is part of a broader economic transformation in Texas, spurred by strong population growth.

National Context

Nationally, since 2020, only 21 million square feet of newly constructed retail space has been listed for lease, representing less than 5% of all available retail space. Elevated financing and construction costs have limited new standalone retail developments across the country, pushing developers to pivot their focus toward multifamily housing, industrial projects, and mixed-use developments. This scenario is further compounded by the fact that Texas’s retail expansion is outpacing many other states due to its robust economic environment.

Conclusion

The current construction surge in Texas reflects the state’s maturation as a prime business destination capable of supporting high-density retail environments. As the state continues to attract new residents and businesses alike, the growth in retail space serves as an indicator of both consumer confidence and ongoing economic vitality within Texas.

Deeper Dive: News & Info About This Topic

Author: STAFF HERE COLLEGE WRITER

The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

STAFF HERE COLLEGE WRITER

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