Dallas Dominates Nationally in Retail Construction

Retail isn’t dead in Texas.

Lone Star State metros lead the nation in retail construction, according to a new report from CoStar, with Dallas on top.

Dallas’ pipeline has nearly 7 million square feet of retail real estate, and almost 5 million square feet of that space is already pre-leased. Houston ranks second with a pipeline of just under 4 million square feet. With over 3 million square feet of retail space in the pipeline, Austin comes in third nationally.

Overall, retail construction has dropped since the Great Financial Crisis and the pandemic. Nationwide, about 64.2 million square feet of retail space was under construction in the first quarter, CoStar reported, down from 70 million square feet in the first quarter of 2025 and below the 90 million-square-foot 10-year average.

Dallas’ new retail construction takes the form of strip malls that anchor master-planned communities in the booming northern suburbs, like Prosper, which is home to Gates of Prosper. The retail portion of the mixed-use development from Jerry Jones’ Blue Star Land includes anchors Dick’s Sporting Goods, Kohl’s and Hobby Lobby. Prosper has been growing at a rate of almost 10 percent annually, according to the town’s economic development corporation. The town, which was home to 46,000 people in 2025, expects to add 25,000 new residents in the next 20 years.

Meanwhile, the closures of big box chains like Party City have provided opportunities for expanding retail tenants, many of which provide experiences rather than products, like gyms and pickleball courts. Once-dying bookseller Barnes & Noble has even made a comeback, scooping up large leases throughout the Texas Triangle.

The strength of retail real estate in Texas also translates to investor interest. In March, Dallas-based developer Younger Partners scooped up three shopping centers in Fort Worth: Presidio Towne Crossing, Tehama Towne Crossing and Vista Ridge, in North Fort Worth. The buyer acquired the 375,000-square-foot portfolio with a $113.7 million loan from a life insurance company. The property, at I-35W and North Tarrant Parkway, is near the $1.1 billion, 148-acre North City development.