Oat milk latte-sipping urbanites may rue the abrupt closure of Chicago-based luxury grocer Foxtrot Market, but it isn’t bad news for everyone — especially folks in the market for premium retail space.
The grocer’s April 23 closure suddenly freed up thousands of square feet of space in Dallas’ most sought after neighborhoods. Retail space is in such high demand that landlords could see higher rents for the vacated storefronts.
Foxtrot’s demise was so quick that its stores closed during service. The company plans to file for bankruptcy protection, the Dallas Morning News reported.
The four Foxtrot outposts in Dallas were situated in Knox/Henderson, Lower Greenville, Uptown and University Park. The company operated 33 shops nationwide.
Foxtrot leased a 3,500-square-foot unit at 3606 Greenville Avenue in the city’s popular Lower Greenville neighborhood.
“It’s sad to lose them, however, we’ve gotten a number of offers,” said Lynne Lowder of Lowder Real Estate.
The asking rent for the space is in the low $60s plus $13.66 triple net per square foot. That is more than what Foxtrot paid, but Lowder declined to say how much more. She expects a similar concept or a restaurant will fill the unit.
“It’s probably one of the most walkable areas of Dallas,” Lowder said.
The Knox/Henderson Foxtrot was located at 3130 Knox Street, in a main artery of the posh neighborhood. The store shared a 6,800-square-foot building with STAG, a men’s clothing store.
JLL recently named Knox Street one of the country’s most-expensive streets for office rents. Office space on the prestigious street averages $79.25 per square foot.
The former Foxtrot location at 2822 McKinney Avenue spans just over 4,000 square feet, according to appraisal district records. It’s situated just south of Dallas’ trendy Uptown neighborhood, which is known for attracting corporate relocations with luxury office developments.
The grocer’s fourth retail location was in a 119,000-square foot office building located at 6565 HIllcrest Avenue in University Park. The $60 million Hilltop Plaza was built in 2019.
Developers virtually stopped building retail during the Great Financial Crisis; now, good retail space is hard to come by. As a result, rents are climbing, and not just in DFW’s most prestigious neighborhoods.
In the third quarter of 2023, average asking triple net rents were $19.75, a 10 percent increase from the year before, according to data from Partners Real Estate.
Foxtrot’s parent company, Outfox Hospitality, had just acquired Chicago grocer Dom’s Kitchen, whose two locations in the Windy City also closed.
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