Texas, August 19, 2025
News Summary
Texas is witnessing a remarkable upswing in retail construction, fueled by strong population growth and domestic migration. Major cities like Austin, Dallas, Houston, and San Antonio are at the forefront, with significant amounts of retail space under development. In stark contrast to the nationwide trend of low retail construction levels, Texas’s robust growth highlights a thriving economic landscape and a burgeoning opportunity for investors and businesses in the retail sector.
Texas
Texas is experiencing a significant surge in retail construction, driven by strong domestic migration and notable population growth. Between January 2021 and January 2025, the state recorded a positive net domestic migration of 0.9%. By early 2025, more than 17 million square feet of retail space was under construction, primarily in large metropolitan areas such as Dallas, Houston, Austin, and San Antonio.
In stark contrast to this robust activity in Texas, nationwide retail construction remains at historically low levels. Only 6 million square feet of retail space was delivered across the United States in the second quarter of 2025, bringing total retail space under construction nationwide to 47.9 million square feet overall. Since 2020, just 21 million square feet of newly built retail space has been listed for lease nationally, making up less than 5% of all available retail space. Significantly, nearly one-third of first-generation retail space available for lease is located in Texas.
Austin
Austin is leading the state’s construction trend, with the highest overall construction intensity at 2.8% of its retail inventory under active development. The city achieved a retail occupancy rate of 97.1% in the last quarter of the previous year. A lack of new construction in the 2010s has led to a high demand imbalance, resulting in an average net absorption of over 2 million square feet of retail space annually. Austin’s population is also growing at a rate of 2.6%, along with rising household incomes which attract more retailers to the area.
Dallas-Fort Worth (DFW)
The Dallas-Fort Worth area leads the nation in retail construction, with approximately 7.2 million square feet in the pipeline as of the third quarter of 2025. This booming economy is supported by around 296,828 businesses and approximately 3.36 million employees in a population of 8.34 million residents. DFW also enjoys a strong net absorption rate with an average of around 3.6 million square feet sold annually, reflecting a thriving retail environment.
Houston
Houston is another key contributor to Texas’s retail construction growth. In the first two months of 2025, the city issued 11,000 building permits, leading all U.S. markets in this area. The retail market vacancy rates in Houston have remained stable, fluctuating between 5% and 6%. The development pipeline in the city totals 3.6 million square feet, incorporating diverse retail options to meet rising consumer demand.
San Antonio
San Antonio has maintained a high retail occupancy rate of over 96% for consecutive years. In 2025, retail construction activity surged, with around 1.7 million square feet under development. The city currently reports a retail occupancy rate of 96.3%, showcasing its consistent growth and attractiveness to retailers.
Conclusion
Texas is not only leading the retail construction boom in the nation but also demonstrating a vibrant economic growth trajectory. With its largest cities pushing the envelope with high occupancy rates and development projects, the state’s retail landscape positions itself as a robust opportunity for potential investors and businesses alike in the coming years.
What is driving the retail construction surge in Texas?
The surge is primarily driven by positive net domestic migration, strong population growth, and high occupancy rates in Texas’s major metropolitan areas.
Which Texas cities are witnessing the most retail construction?
Dallas, Houston, Austin, and San Antonio are leading the state in retail construction, with each city contributing significantly to the overall growth.
What are the occupancy rates in major Texas cities?
Austin has a retail occupancy rate of 97.1%. Dallas-Fort Worth maintains a strong presence with 96% occupancy. Houston ranges between 5-6% vacancy rates, and San Antonio averages over 96%.
How does Texas’s retail construction compare to the rest of the United States?
Texas is experiencing a retail construction boom with over 17 million sq. ft. under construction, while nationwide only 6 million sq. ft. was delivered in Q2 2025.
| City | Retail Space Under Construction (sq. ft.) | Vacancy Rate | Current Occupancy Rate |
|---|---|---|---|
| Austin | Data Not Provided | Data Not Provided | 97.1% |
| Dallas-Fort Worth (DFW) | 7.2 million | Data Not Provided | 96% (Approx.) |
| Houston | 3.6 million | 5-6% | Data Not Provided |
| San Antonio | 1.7 million | Data Not Provided | 96.3% |
| Date/Time | Event | Status/Source |
|---|---|---|
| Jan 2021 | Start of positive net domestic migration in Texas | 0.9% recorded |
| Early 2025 | Over 17 million sq. ft. of retail space under construction | Primarily in major cities (Austin, Dallas, Houston, San Antonio) |
| Q2 2025 | Nationwide retail space delivered | 6 million sq. ft. |
| 2025 | Houston construction permits issued | 11,000 permits in first two months |
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Additional Resources
- Chain Store Age
- Wikipedia: Texas
- CoStar
- Google Search: Austin Retail Construction
- D Magazine
- Google Scholar: Dallas Fort Worth Retail
- Yield Pro
- Encyclopedia Britannica: Houston Retail
- Shopping Center Business
- Google News: San Antonio Retail Development
Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar 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 Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
