Texas, August 25, 2025

News Summary

Texas is experiencing a remarkable surge in retail construction, dominating the U.S. market with over 17 million square feet of retail space underway. Key cities like Austin, Dallas-Fort Worth, Houston, and San Antonio are leading this expansion, capitalizing on population growth and economic opportunities. With impressive occupancy rates and significant projects, Texas showcases its strategic advantages in attracting businesses and residents, establishing itself as a vital player in the retail landscape. Despite economic challenges, the state’s construction market remains robust and poised for continued growth.

Texas

Texas is experiencing an unprecedented boom in the retail construction market, marking the first time in U.S. history that all top retail construction markets are concentrated within the state. With over 17 million square feet of retail space currently underway, Texas is responsible for nearly one-third of all first-generation retail space under construction nationally, as it capitalizes on rapid population growth and an influx of businesses.

Significant Growth and Key Markets

In the second quarter of 2025, only 6 million square feet of retail space was delivered across the entire United States. Austin, Dallas-Fort Worth (DFW), Houston, and San Antonio stand out as critical players in this development surge, contributing significantly to the Texas retail landscape:

Austin

• The metro area leads in construction intensity, with 2.8% of its inventory under development.
• Its retail occupancy rate is at 97.1%, the highest in Texas.
• The construction surge is a reaction to years of underbuilding and rapid population growth, particularly as the city establishes itself as a tech hub.

Dallas-Fort Worth (DFW)

• DFW holds the nation’s forefront with 7.2 million square feet of retail space under construction.
• The metro area benefits from substantial economic scale and ongoing population growth, establishing itself as a significant retail hub.

Houston

• The city is adding 3.6 million square feet of retail space.
• Key drivers include suburban housing growth, a thriving culinary scene, and strong grocery anchors like H-E-B.
• The retail market exhibits strong absorption rates and consistent vacancy figures.

San Antonio

• Currently, San Antonio has 1.7 million square feet under construction, indicating the highest activity in years.
• With a retail occupancy rate of 96.3%, the city is experiencing positive in-migration trends.
• Major projects underway include the expansion of Live Oak Town Center and a new 117,000-square-foot H-E-B.

San Antonio is seeing its most robust construction year since 2019, with projections suggesting the continued health of its retail environment. The city has maintained a retail occupancy rate above 90% for the past 15 years, showcasing impressive stability.

Market Trends and Challenges

Despite external challenges such as tariffs and inflation, as well as ongoing highway construction affecting sector forecasts, recent market reports indicate a healthy balance of supply and demand. This emerging landscape reflects a stark contrast to the historical lows observed in other regions of the United States.

Conclusion

The Texas retail construction boom not only signals significant economic growth but also highlights the state’s strategic advantages, including favorable migration trends and its reputation as a business-friendly environment. As Texas continues to dominate the retail landscape, the implications for employment, economic diversification, and local communities could be profound.

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Additional Resources

• San Antonio Express-News
• Wikipedia: Texas Retail Construction
• Virtual Builders Exchange
• Google Search: Texas Retail Growth
• Chain Store Age
• Google Scholar: Texas Retail Economy
• San Antonio Express-News
• Encyclopedia Britannica: Retail Construction
• KENS 5
• Google News: Texas 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.