Welcome to the Deep Dive. We’re looking at the commercial real estate news for the week ending May 23rd, 2025. Our focus today is really on retail, especially developments and trends that you’ll likely recognize right here in the Dallas Fort Worth market. We’ve got a sense of what’s happening from various sources.

Kind of a snapshot of the current retail scene. Exactly. So our goal is to unpack some of these trends and think about what they mean for DFW retail, maybe particularly for those of you working with firms like like Eureka Business Group. Okay. Sounds good. One of the first things that you know really stands out is just the sheer range of brands that seem to be active.

We’re seeing discount names like Burlington Dollar General, Nordstrom Rack to the off price player. Exactly. But then also apparel, like we noted a Forever 21, but interestingly with a store closing sign. And then you’ve got Home Goods, Walgreens, Kirkland’s, home plus a lot of food and beverage.

Yeah. McDonald’s, Starbucks, Jersey, Mike’s. Potbelly Lululemon’s in there too, which often has that Retail fitness crossover Mini, so the TJX brands, TJ Maxx, Marshalls, home Goods, target of course, and service providers like at and t. It’s a, it’s quite a broad spectrum. It really is. Seeing that mix, deep discount, apparel, services, food, all operating in the same environment.

Oh yeah. It definitely raises questions about the DFW retail market right now. Yeah. What’s enabling this kind of coexistence? And you mentioned the Forever 21 closing sign. Seeing that near, say, a now open like Bolero really highlights the churn, doesn’t it? It does. That contrast is stark openings and closings happening almost side by side.

It speaks to how dynamic things are. Precisely. It shows that retail is constantly evolving. The bolero, that’s a nod towards experiential retail, right? People wanting more than just shopping. They want an experience. Yeah. But the forever 21 closure. Yeah. That could be fashion trends changing, maybe economic pressures on certain segments, or maybe just, too much saturation in that specific niche here in DFW.

And for a brokerage like Eureka Business Group, navigating that churn is key. A closure is one thing, maybe a leasing opportunity, right? An opportunity to help a landlord find a new tenant. While the success of other categories like experiential or discount signals, where the demand might be where we could focus tenant representation efforts.

Okay. So beyond the brands themselves, what about the places they’re choosing? We’re seeing different kinds of shopping centers represented, typical strip malls with tenants like Walgreens, maybe Dogtopia, my gym, Starbucks, the sub shops at and t Leslie’s pool. The convenience driven spots.

Then you’ve got what looked like power centers. You know the bigger boxes, TJ Maxx, Marshalls, HomeGoods, Ulta, yes. Dominated by those large format category killer type stores and maybe even hints of a larger enclosed mall. I think we saw a Macy’s mentioned alongside that closing Forever 21. And that variety in formats is really typical of a large diverse market like DFW.

Each format serves a slightly different purpose. Strip malls are often about, daily needs, convenience, power centers draw people looking for value in selection in specific categories and malls. They’re still around though, maybe having to adapt more, definitely adapting. The successful ones often are incorporating more dining, entertainment, maybe even non-retail uses, but they still have a place.

For us at Eureka Business Group, understanding which tenants work best in which format here in DFW is crucial for advising clients, whether they’re leasing a small shop space or trying to figure out what to do with the big anchor box. Let’s talk more about that tenant mix within the senders. It often seems.

Pretty deliberate, doesn’t it? Like clustering, complimentary businesses. You mentioned fitness places like Retrofit or my gym, often being near food options. McDonald’s, Starbucks, juicy Mike’s, Potbelly, even CAVA showed up. And then service businesses woven in like Walgreens, pharmacy at and t Ideal image.

What’s the the strategy behind that co-location approach in the current DFW market? It’s all about creating synergy, really. The idea is to make it easier for the consumer, right? Get more done in one trip. If you go to the gym, maybe you grab a healthy lunch nearby. If you’re picking up a prescription, maybe you grab coffee.

It boosts foot traffic for everyone involved. Creates more reasons to visit that specific center. Exactly. And you also mentioned the strong presence of those discount and off price retailers earlier. Burlington Dollar General, TJX. Target that prominence likely reflects, a continued focus on value for many DFW consumers, especially given the broader economic climate.

There’s strong demand for space from those retailers, so knowing which combinations work, which adjacencies drive traffic, that’s key for advising property owners here. Absolutely. It helps us guide clients on the optimal tenant mix for their specific property in the DFW area to maximize its potential.

Now something else we saw hinted at was a closed Sears that touches on a big topic anchor vacancies. Yeah. Here in DFW, like everywhere, a big empty anchor box can really impact a shopping center’s health, can’t it? Oh, definitely. It’s a major challenge. It reduces foot traffic, can trigger co-tenancy clauses for smaller tenants.

It really requires creative solutions. What kind of solutions are we seeing? Sometimes it involves subdividing, that huge space for multiple smaller tenants, sometimes attracting non-traditional anchors. Think entertainment venues, maybe even medical clinics or educational facilities. Or sometimes it necessitates a full redevelopment.

But then we also saw a Macy’s still operating. So it’s not like all department stores are gone? No, not at all. It suggests that the model. While definitely evolving and adapting still works in certain locations, particularly perhaps in stronger well located malls within the DFW Metroplex, they’re finding ways to stay relevant.

So it’s a mixed bag for traditional anchors. It is. And for Eureka Business Group, dealing with these anchor situations is a core part of what we do, whether it’s marketing a vacancy, and finding those creative solutions or representing department stores as they navigate their own real estate strategies In markets like DFW.

We touched on Bolero earlier that highlights the rise of experiential retail. It seems less about just buying stuff now. That’s a huge trend. People are seeking experiences, entertainment, things to do, not just transactions, and also the consistent presence of food and beverage everywhere. Starbucks, the sandwich shops, McDonald’s.

Their importance seems undeniable. Absolutely critical. Food and beverage drives traffic, increases dwell time, and serves that basic need. You see it thriving across all formats from strip centers to malls. Are these trends experiential and food bev particularly strong here in Dallas-Fort Worth? I’d say yes.

DFW is a dynamic market with a growing population that values, experiences and dining out. So the demand for entertainment venues, unique fitness concepts, interactive retail, and diverse food options is definitely high. For us, identifying and attracting these kinds of experiential and food tenants is increasingly important for making retail centers successful and vibrant here.

They’re often key traffic drivers now. Okay, so even though these specific examples might not be physically located in DFW. The patterns feel very familiar, don’t they? The mix of discount and other retail, the different formats, the experiential element, the service providers. This sounds like the DFW commercial real estate scene we work in every day.

Very much these national and regional trends are definitely playing out strongly in our local market. So thinking specifically about DFW, what do these observations suggest for a retail focused firm like Eureka Business Group? What are the immediate opportunities or challenges? The Visual Cues act as good indicators that Forever 21 closing, for example, it reminds us there will be leasing opportunities arising from similar situations right here in North Texas.

We need to be ready to help landlords backfill that space. Makes sense. The strength of discount retailers, that’s signals ongoing demand in that sector. We can help those chains expand here or help landlords attract them as stable tenants. That’s a reliable segment. And the growth in experiential and food and beverage points to where a lot of the leasing velocity is.

That’s where we need to be active in tenant representation and advising landlords on how to position their properties to attract those users. So understanding these broader visual trends helps refine the local strategy precisely. It helps us give informed strategic advice tailored to the specific dynamics of the Dallas-Fort Worth market.

And just briefly, we should acknowledge that retail doesn’t exist in a vacuum. Some of those background shots showed office buildings, maybe some industrial space. That’s a good point. The retail sector here in DFW is definitely interconnected with the broader commercial real estate ecosystem. Strong job growth in office or industrial sectors usually translates to more consumer spending, which.

Obviously benefits retailers. Understanding those connections gives us a more complete picture when advising clients. Okay, so summing up this week’s look at the retail landscape through these snapshots, it’s clear things are very fluid. We’re seeing diverse retailers, different types of centers serving different needs, and this ongoing evolution in the tenant mix towards experiences and food and that constant churn, the openings and closings happening simultaneously.

Really underscores how dynamic the market is right now. Absolutely. Staying on top of these trends, even just from visual cues, is really vital for anyone involved in DFW retail. It helps us at Eureka Business Group anticipate what’s next, spot the opportunities and serve our clients effectively by being knowledgeable advisors in this market.

So here’s something to think about as we wrap up. Looking ahead, maybe over the next few years here in Dallas-Fort Worth, which specific retail categories or maybe which shopping center formats do you think will see the most significant change or evolution? And what could that mean for businesses and investors active in our region?