TEXAS SNAPSHOT, OCTOBER 2005

Fort Worth Retail Market

The retail market in Fort Worth has felt the affects of Wal-Mart's presence, which has caused a number of grocery chains to expand with caution. This has led to a remarkable amount of unanchored retail space being developed for retailers that traditionally follow grocery stores. Still, Fort Worth's retail occupancy rates remain approximately 90 percent and new developments are planned along the Interstate 35/Highway 287 Corridor in north Fort Worth, according to Collin Lasater, senior director of NAI Stoneleigh Huff Brous McDowell. “However,” says Lasater, “the retail market has seen its largest growth in Fort Worth's northwestern and western suburbs due to the growing residential market.”

Hillwood, Trademark Property Company, Margaux Development Company, Weber and Company and Omni Group are some of the most active retail developers in Fort Worth. In north Fort Worth, Hillwood and Trademark Property Company are developing Alliance Town Center, which is projected to be more than 2 million square feet of retail, office, entertainment, medical and residential space in a pedestrian-friendly environment located at the intersection of I-35 and Heritage Trace Parkway. Phase I will cover approximately 700,000 square feet centered around a public square park.

In addition, Margaux Development Company is developing Westover Plaza, a 61-acre mixed-use development that will offer specialty retail, office, hotel and residential space. Located at the southeast corner of Green Oaks Road and State Highway 183, Westover Plaza will benefit from current area retailers Lowe's Home Improvement Warehouse, Wal-Mart and Sam's Club.

Leases have recently been closed in the refurbished Montgomery Plaza development as well as the new Lake Worth Towne Crossing development. Dallas-based Weber and Company is renovating the historic Montgomery Ward building for Montgomery Plaza. The St. Louis-San Francisco-Texas Railroad, West Seventh and Carroll streets bound the development, which will be anchored by a 173,890-square-foot SuperTarget and will total up to 918,083 square feet. Tenants that have signed leases include PetsMart, Linens 'n Things, Sportsman's Warehouse, Ross Dress For Less, Marshalls and Fort Worth-based Pier 1 Imports. The $50 million project was granted $19.8 million in tax rebates by the city of Fort Worth. It is scheduled to open in October.

In Fort Worth's northwest suburb of Lake Worth, Weber and Company is developing the 48-acre, 423,000-square-foot Lake Worth Towne Crossing development. The development, located at Jacksboro Highway and Paul Meador Drive in Lake Worth, is anchored by a 123,735-square-foot Target and has agreed to terms with Circuit City, Ross Dress For Less, Hobby Lobby and PetsMart.

New retailers continue to enter the market in response to Fort Worth's suburban growth. “P.F. Chang's China Bistro and Cabela's are noteworthy retailers that have recently entered the Fort Worth market,” says Lasater.  

Most of that suburban development lies westward and Walsh Ranch plans to continue the trend. The Walsh family will transform their 60-year-old cattle ranch, located west of Fort Worth, into a mixed-use development. “Walsh Ranch is strategically placed for both single-family growth and commercial use,” says Lasater. The 7,275-acre site development will include retail, office and residential space that approximately 45,000 people will call home over the next 30 to 40 years.

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