| TEXAS SNAPSHOT, AUGUST 2008
Dallas Retail Market
New retail development has slowed down in Dallas, in terms of developers purchasing new properties and starting new developments, according to Greg Pierce, executive vice president of leasing and brokerage for the retail division of Colliers International in Dallas.
“Existing projects are going forward, but they are leasing up slower than during the last 5 to 7 years,” he says.
Although the market has taken a downward turn, redevelopment in the Hispanic market is very solid, says Robin Barrow, who serves as vice president of leasing and brokerage in the same Dallas division as Pierce.
“We will continue to see an increase of these redevelopments, in order to keep up with the demand for retail in the Hispanic markets,” she adds. “Dallas has a Hispanic population of 25 percent, and there is more demand for Hispanic-driven retailers.”
One area that is experiencing strong retail activity is the Northeast submarket along U.S. Highway 75, particularly in the cities of Allen and Fairview.
“The Allen/Fairview area is experiencing a 25 percent to 30 percent growth increase in the retail/lifestyle sector in just 1 year with the addition of The MGHerring Group’s The Village at Fairview and The Village at Allen,” Barrow says.
The additional 3 million square feet of space between the two centers will significantly change the drawing power and shopping/eating trends in Collin County, adds Pierce.
“Where Allen was once considered to be the ‘hole in the donut,’ it is now one of the fastest growing communities in Dallas/Fort Worth,” Barrow says. “Five years ago, retailers and restaurants would locate in Plano, then proceed north and skip over Allen into McKinney. With a population of 82,000, Allen has definitely put itself on the map.”
On the southwest side of town in Cedar Hill, Uptown Village at Cedar Hill — another The MGHerring Group project — will change the concentration of higher quality, lifestyle-type tenants, according to Pierce.
In Fort Worth, the West 7th mixed-use project, which will span approximately 950,000 square feet at West Seventh and University, also will significatly impact the market. Grand opening is scheduled for fall 2009.
As evidenced by some of the projects mentioned above, The MGHerring Group is one of the more active Dallas-area retail developers. Some other active retail developers in the market include Trademark Property Company, Cypress Equities/Staubach, Regency Centers, Hermansen Land Development and Harvest Partners.
Pierce says to keep an eye on the Fairview/Allen growth corridor; the West 7th area in Fort Worth; the Frisco 121 Tollway; and Cedar Hill submarket in the near future. Preston Road, located in the town of Prosper, is another area to watch, Barrow adds.
— Greg Pierce is executive vice president of leasing and brokerage for the retail division of Colliers International in Dallas. Robin Barrow is vice president of leasing and brokerage for the retail division of Colliers International in Dallas.
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