Big Box vacancy giving opportunities for new concepts
Overall big box vacancy totals just over 4 million square feet in 110 properties throughout the metroplex. This compares favorably to the vacancy in 2009 and 2010 when there were nearly 250 vacant big boxes available. During that period, Circuit City, Linens & N Things, and several grocers left our market littered with boxes that allowed many new concepts to expand into DFW and establish a foothold at much lower rents than can be achieved today.
Victory Park’s retail revival
Twenty years after it’s grand opening, Victory Park is seeing a retail revival. In 2012, the 75-acre mixed use development, was only 28 percent leased, but today is seeing an 83 percent occupancy rate. This year the district is opening 10 food and beverage concepts and has already welcomed Orangetheory Fitness, WeWork, and Cinepolis Luxury Cinemas.
DFW’s job growth well above average
Dallas and its surrounding area has added jobs 44,048 jobs for the trailing 12 months ending in August, well above average. Additionally, the metroplex led the country in population growth last year, adding 146,000 residents. This rise and population growth and a healthy job market has created a demand for more shops and restaurant/entertainment.
Class A Box availability on the rise, but demand steady
Currently we count 31 vacant Class A Boxes, with nearly two thirds consisting of former Toys R Us/Babies R Us and Sports Authority locations. Demand for these properties remain strong, with the most active users of this second generation space being Ollie’s Bargain Basement, Burlington Coat Factory, 24 Hour Fitness and Total Wine.