Welcome to the Deep Dive. We’ve gathered quite a stack of sources, articles, research, various notes, and our job is to pull out the really crucial insights for you. That’s right. The mission’s pretty straightforward. Cut through all the noise, help you get well informed and do it quickly. And today we’re diving deep into the latest in commercial real estate news.

We’ll have a sharp focus on the retail sector and especially what’s developing right here in Texas, particularly the Dallas-Fort Worth market, which is seeing a lot of activity. Our sources for this cover, roughly late May through early June, 2025. Okay, so let’s start with the the big picture. The broader economy seems to be casting a bit of a shadow over commercial real estate values right now.

Yeah, the economic context is it’s really key here. City research, for instance, recently flagged housing market weakness. They called it the top threat to the US economy. And how is that playing out? We’re seeing it, with mortgage rates, they’re staying stubbornly high. You’re 7% that directly hits home sales pushes inventory up. And analysts are definitely warning that this kind of housing slowdown, historically, it’s often been a sign, a precursor to broader recessionary pressures. And those pressures are now hitting commercial real estate. They are quite visibly. What’s really notable according to MSCIs, RCA indices, is that for the first time since, 2010. We’re seeing value declines. Across all the major CRD sectors at the same time, all of them. So office retail, industrial, and multifamily. Yeah. The indices show declines both months over month and year over year. Multifamily, which had quite a strong run, is down about 12.1% year over year in these specific indices.

Wow. Yes, even retail properties are seeing value drops nationally within this broader environment. So this isn’t just, an office story we’ve been hearing about. It’s really a cross sector impact tied to those economic headwinds, and I assume higher interest rates, precisely the Federal Reserve stance on rates, which is obviously influenced by indicators like housing or, potential job market shifts.

It is a direct impact on CRE valuations, the cost of debt. And speaking of debt, are we seeing signs of strain there too? We are. It’s showing up in the delinquency data. There’s an MBA report indicating rising loan delinquencies back in Q1 2025 for commercial properties. Which sectors specifically?

Lodging and industrial saw increases, but it’s also worth noting that government backed multi-family loans. Also saw a jump. Okay. It suggests that these sustained higher rates, combined with the general uncertainty are just making it tougher for some borrowers to service their CRE debt across different property types.

Okay? So nationally values are broadly ticking down debts, showing some stress signs, but if we drill down specifically into retail. Are there maybe different dynamics happening there? Perhaps a bit of a counter story. We’ve heard reports about supply shortages in some retail areas. That’s exactly where the picture gets well more nuanced.

While that national macro data points towards overall value declines, there’s a very real supply site issue affecting certain types of retail, and that’s creating pockets of strength. Pockets of strength, yeah. Major developers like Regency Centers for example, they’re highlighting a significant shortage of new high quality neighborhood.

Community shopping centers, the kind people visit regularly. How significant is this shortage? What kind of scale are we talking about? Sources like G Globalist and other industry reports show that retail construction completions nationally from 2021 through 2023. Were incredibly low, like over 80% below the levels we saw back in the mid two thousands, 80% below.

Wow. Yeah. And this has resulted in what’s estimated to be a national deficit of roughly 200 million square feet of new retail space compared to those historical building rates, 200 million square feet that didn’t get built. That must put some serious pressure on the available space. It absolutely does.

Yeah. And developers are. Responding strategically. They’re focusing more now on partnering with masterplan communities, especially in these fast growing suburban areas. Makes sense. And they’re anchoring their centers with necessity based retailers. Think grocery stores, whole Foods, HEB here in Texas.

Places people go every week. Almost regardless of the broader economy. Building in that reliable foot traffic. Exactly. It aims to build in demand and stability and despite those economic headwinds we just talked about reports from mid-May, were still showing robust leasing activity and consistent foot traffic in these types of necessity, anchored, convenience focused retail centers.

It seems driven by basic consumer habits. That’s fascinating how that supply constraint creates opportunities even while national values are maybe softening. Overall, it suggests certain retail assets must still be pretty desirable for investors. Oh, absolutely. And the investor appetite for these specific assets really confirms it.

We just saw Nuveen real estate close on, what was it, $320 million for? Its US City’s retail fund. Okay. And its specific goal is targeting grocery anchored centers. Their head of retail actually described the current market as a great vintage moment for buying these types of necessity based assets. A great vintage moment.

That’s quite a statement. It is that level of capital formation specifically for this niche within retail. It just underscores the perceived resilience and attractiveness of these daily needs centers, even in a, let’s say, more challenging environment. Okay, so there’s definite strong demand in capital chasing certain kinds of retail, especially necessity based, but.

If we look at the broader national leasing picture, across all types of retail space, what’s the story there? Is that also showing strength? The broader national leasing picture, that’s where those macro factors we discussed earlier really bite and it creates more of a mixed bag. Frankly, I.

Data from Cushman and Wakefield, for instance, points to shrinking US retail, net absorption. Net absorption, meaning the overall change in occupied space. Exactly. And Q1 2024 actually saw retailers vacate nearly 6 million square feet more than they leased nationally. That was the worst quarter since 2020.

Oh and Q1 2025 also showed negative net absorption around negative 5.9 million square feet. So nationwide, more space is being given back than is being taken up by new tenants. That’s the trend. Correct. And that negative absorption is partly driven by, retailer distress and bankruptcies.

Companies like Joanne Party City, their closures contribute. But there’s another significant factor impacting leasing activity right now and may be a less obvious one. Tariffs. Tariffs, really. How do trade tariffs directly affect a retailer’s decision to sign a new lease? It mainly creates uncertainty and impacts their costs.

Sources like Reuters linked slower national retail sales back in April, they were almost flat. Up only 0.1% directly to the effects of higher tariffs. This added cost pressure leads some retailers to cut their financial guidance, reduce inventory orders, and that uncertainty around tariffs combined with ongoing inflation.

I. It’s cited as a reason why some tenants are just pausing decisions on new leases. Little back. Yeah. They’re in a wait and see mode about how tariff policies are gonna shake out. That makes perfect sense. If your cost for goods could change unpredictably because of tariffs committing to a long-term fixed rent payment suddenly looks.

A lot riskier. Precisely. Simon property group’s, CEO specifically mentioned this. He said tariff uncertainty is causing retailers to delay purchases and in some cases even walk away from potential lease deals they were considering. Wow. And he expressed particular concern for the smaller tenants, the less capitalized ones, who are just more vulnerable to these kinds of cost fluctuations.

Sure. Meanwhile, you see the larger players, Macy’s, target. Apple. They’re actively trying to shift parts of their supply chains away from China to mitigate future tariff risks, but that often involves short-term cost increases and logistical hurdles. Not an easy switch. Not at all. And while there’s some temporary relief for specific inputs, the White House extended certain tariff exclusions through August 31st.

The overall climate of uncertainty is still there and it’s influencing retail expansion plans nationally. Okay, so nationally values dipping some debt stress overall retail leasing negative, partly due to bankruptcies in this tariff uncertainty, making tenants cautious. But as you said, that seems to contrast pretty sharply with what we’re hearing about the Texas market.

Let’s shift our focus right here. Yeah. Let’s connect this back. If we look at Texas and DFW and Houston specifically, they really stand out as well a counterpoint to some of those national trends. The NAR Commercial Insights report had a really surprising data point. What was that? Dallas and Houston were the top two US markets for retail space absorption in the first quarter of 2025.

The top two in the whole country while the national number was negative. That is quite a contrast. It really is. And the NAR report specifically highlighted that suburban and grocery anchored retail properties in Sunbelt metros like Dallas and Houston are remaining strong, even while demand is softening in some of the, legacy gateway markets.

That fits perfectly with what you were saying about necessity retail and growing areas. Exactly, and you see this strength reflected in just the sheer scale of development happening here in DFW that integrates retail components. This is where the local story gets really interesting, especially for us focused on DFW.

Tell us about some of these multi-billion dollar developments. Particularly up in Frisco. Frisco is, yeah, arguably the prime example of this integrated growth model right now. Yeah. You have the Fields master plan, which is just immense. Multi-billion dollar Cara hand companies just broke ground on the preserve.

Okay. It’s a large gated residential community, and it’s specifically designed to provide shoppers for the adjacent $2 billion. Fields West mixed use part. Ah, building the customer base right next to precisely, and that Fields West Retail Center. It’s about 55 acres already around 70% pre-leased.

Apparently it’s planned to be 20% larger than Legacy West, if you can believe it. Wow, when is that supposed to open? They’re expecting retail elements to start opening by early 2028. So they’re not just building retail in isolation, they’re building the whole ecosystem around it. The homes, the offices, all designed to generate demand, right On site.

It’s about creating that density that built-in customer base, you mentioned. Exactly. And Fields isn’t even the only massive project up there. You’ve also got the mix. That’s a $3 billion project and Firefly Park valued somewhere between 2.5 and $4 billion. Both are adding millions of square feet of various uses, including a lot of retail, and these are all moving forward despite the national headwinds.

Yes. Which really shows the immense capital and confidence pouring into DFWs growth story. And it’s not just Frisco. McKinney also has some big plans announced recently. That’s right. Billing Z Company is planning Huntington Park. That’s a huge 800 acre master plan community in McKinney. 800 acres. Yeah, it includes thousands of new homes, but alongside that, 175 acres are specifically designated for commercial development, mixing retail and office space.

The same strategy again, integrate retail within large scale residential growth in these expanding suburbs. It confirms that strategy of securing large land tracks and planning comprehensively, but it’s not just about brand new development. Even existing centers are showing some resilience and adaptation.

The Town East Mall story in Mesquite comes to mind there. That seems like an interesting case of survival. It does. Brookfield Properties managed to avert foreclosure at a pretty large loan for Town East. The mall is reportedly still holding strong, around 90% occupied. I. That’s high occupancy these days for a traditional mall.

It is, and they’re actively adding new anchors like a Main Event Entertainment Center, going into a former Sears space. The city’s even providing support, including tax incentives to help keep the Macy’s anchor store there. So it shows that even some traditional suburban centers, which face challenges nationally, can remain viable here with solid occupancy, adaptive reuse strategies, and crucially local support.

Exactly. And we see continued investment hints across Texas too, beyond just EFW Walmart opening. Its first new US Supercenter in years down in Cyprus, near Houston. A Costco site plan approved near Austin, Amazon planning a distribution center down in Brownsville. Texas clearly remains a major target for retail and related logistics investment.

Okay. So Texas, especially DFW, showing incredible growth, resilience in retail absorption, huge integrated projects. But you mentioned a unique Texas challenge, looming something that could disrupt things. Yeah, it raises an important. Potential issue. While we see all this growth and focus on necessity retail, there’s a specific Texas legislative challenge that could potentially disrupt a significant chunk of retail space quite rapidly.

You must be referring to the Texas Hemp Bill Senate Bill three, precisely Texas Senate Bill three, which is basically designed to outlaw the sale of intoxicating hemp products. Delta eight and similar things. It’s currently sitting on the governor’s desk awaiting a decision. Okay. If it gets signed into law, analysts are estimating, it could force the closure of something like 8,500 hemp shops across the entire state.

8,500 shops potentially closing down. That is a huge number of storefronts that could suddenly become vacant. The potential footprint is, yeah, pretty substantial. The Texas hemp industry is estimated as a $5.5 billion annual business supports maybe 50,000 jobs statewide. Yeah. And what analysis suggested these shops collectively occupy maybe up to 17 million square feet of retail space across Texas 17 million square feet.

Yeah, that’s significant. To put it into perspective, just in the Houston area, analysts estimate around 407 shops could close. That could vacate somewhere between say, 600, 10,800 14,000 square feet. Yeah, that’s roughly the size of the Toyota Center arena, just in Houston. Good grief. Yeah. One source even noted there were actually more Houston area hemp shops than there were McDonald’s locations.

That really drives home the scale. It could have a very visible impact on local retail strips and centers. Absolutely. It creates what one Dallas landlord, Monte Anderson called a potential ripple effect when he was urging the governor to veto the bill. He highlighted the disruption it could cause to local leasing markets.

Sure. Now, obviously there are differing perspectives. Legislators cite concerns about youth safety. Industry advocates argue it’s become a legitimate, almost necessity based retail sector for some consumers similar to alcohol sales. But regardless of the viewpoint, landlords and the industry are.

Actively mobilizing now lobbying the governor to make sure the potential impact on potentially thousands of commercial properties across Texas, including right here in DFW is fully understood. It really is a complex mix of forces, isn’t it? You’ve got the national economic pressures, the supply constraints, creating specific opportunities, shifting retailer strategies because of things like.

Tariffs. Then this massive local growth here in DFW, side by side, with a potential very sudden regulatory shock that could create a lot of vacancy. How is the CRE industry itself, like the brokerages responding to navigate all this? The response from brokerage firms kinda reflects this split market picture we’ve been talking about.

We’re seeing firms strategically positioning themselves to capitalize on where the opportunities clearly are, particularly in these growth markets like Texas and in those resilient sectors like necessity, retail. So they’re adding resources. Yeah. Newmark, for example, has been expanding its retail teams nationally.

More relevant for our focus here, Avison Young promoted leadership specifically to target Texas retail and land development deals, and JLL recently hired a new lead specifically for development projects right here in Dallas. Okay. These kinds of moves, they signal confidence in the pipeline of retail and mixed use activity, especially in Texas, and they see the need for specialized teams to actually execute those deals effectively in this environment.

And we also see adaptation in the existing market, right? Like that. City place, office to apartment conversion in Dallas, getting city incentives. That seems like another piece of the puzzle. Exactly. That’s a great example of adaptation. Working to reposition underutilized assets and often it requires that public support, that local government collaboration, which is really key to navigating these changing demand dynamics, especially in denser urban areas like parts of DFW.

Creative approaches to existing buildings shows that need for local market knowledge and partnership. So let’s try and bring this all together for you, our listener. Trying to stay on top of what’s happening in commercial real estate, especially retail, especially here in DFW. We’ve definitely seen that nationally there are clear headwinds, right?

Macroeconomic caution tied to housing interest rates, uncertainty from tariffs. That’s all impacting overall CRE values and slowing down national retail leasing. We saw that negative absorption in Q1, but to, and it’s a big, but the story here in Texas, particularly Dallas-Fort Worth is remarkably different.

We’re actually leading the nation in retail absorption. Yeah, quite the contrast. We’re seeing these massive multi-billion dollar master plan developments. Actively integrating retail with residential to create built in demand. Existing suburban centers are finding ways to adapt and survive, even thrive sometimes, and significant capital like that.

Nuveen Fund we mentioned is flowing specifically into necessity based retail assets right here. Precisely because of their perceived stability in this market. So understanding this crucial contrast of the national challenges versus the specific drivers of resilience and frankly, booming growth here in DFW, that’s essential.

Absolutely. And then you add to that, the potential very sudden disruption from something like the Texas hemp. Bill and you have a market that really requires navigating the local specifics, not just relying on national headlines. It just underscores why understanding these really granular dynamics, the interplay of growth, resilience, potential challenges is so important.

If you’re involved in, or even just following the DFW commercial real estate market, it’s true. We’ve seen that while national retail does face those challenges from tariffs, economic uncertainty, the DFW market is demonstrating really distinct strength. It’s propelled by population growth, these huge integrated developments and very robust necessity retail.

So maybe a final thought to leave you with, yeah. Perhaps consider this. How will the sheer scale of all this planned residential growth, we talked about places like Frisco and McKinney combined with the potential for sudden widespread retail vacancy if that hemp bill passes. How will those two forces fundamentally reshape the precise balance of retail supply and demand, and even the tenant V in different sub-markets across Dallas-Fort Worth over the next few years?

There’re really dynamic interplay unfolding right now with potentially significant local impacts to watch.

 Okay, let’s dive in. If you’ve been anywhere near North Texas recently, you can definitely feel it, can’t you? That kind of buzz, the constant hum of activity. Oh, absolutely. Cranes everywhere. New projects, breaking ground, it seems every week deals getting done. It’s a really dynamic environment.

Seems like the region is just pulling in a lot of capital, a lot of development interest, even while, other places might be seeing things cool off a bit. For sure. And that’s really what we wanna untack today. We’ve gone through a whole stack of recent reports Dallas Business Journal, bno, CoStar Globes, that kind of thing from the last say, 10 days or so.

The goal here is it’s to cut through all the noise, pull out the really important bits of news and insight. We’re focusing especially on what’s happening right here in Dallas-Fort Worth commercial real estate, and we’ll spend a good amount of time on retail today too. There are some really interesting shifts happening there, but also connecting it back to the bigger picture.

Exactly, so get ready. The the climate right now, it feels like this mix of a really big development moving forward, but also some ongoing challenges and definitely some shifting dynamics in how space gets used and funded. I. Yeah, you really need to look past just the headlines to understand what’s driving things.

Dig into the actual deals, the specific trends. Okay, so let’s kick off with just the sheer amount of development and growth across DFW. It’s it’s not just downtown Dallas anymore. Is it? Big mixed use stuff, huge land deals popping up all over. That’s what strikes me too. It’s not just the core, it’s really pushing outwards, often sparked by, big employer moving in or new infrastructure. Perfect example. Sherman up north, that massive new Texas Instruments client is obviously the catalyst and right nearby that $250 million mixed use village. They’re building. Yeah. Tailored for the TI workforce. Exactly. It’s moving fast. Reports, say the infrastructure work, roads, utilities, that stuff should be done by the end of June.

Wow, that is fast. It just shows the kind of demand that a huge anchor like PI creates. It can really accelerate things in what maybe was a quieter area before. Then you go bit south Pilot Point. A really big land deal just closed there. 260 acres. And the reports connected straight to North Texas’.

Growth overall saying it could, really reshape that town with housing and commercial space. It tells you the growth wave is still spreading out. Developers are clearly betting on population boom, reaching further into those caller counties and you can’t talk DFW without mentioning Frisco Ray.

Never that, $350 million mixed use place near the PGA headquarters in the Omni. It’s hitting its final fate. Yeah, definitely benefiting from all the buzz around the PGA campus, the whole $5 billion mile thing they talk about. What’s wild though is even with all that construction, Frisco’s, EDC says something like 13% of the city’s land is still undeveloped.

And a lot of that is apparently earmarked for commercial use. There’s still a lot of runway there for future growth, plenty of potential. Okay, let’s swing down into Dallas itself. Near UNT Dallas, over in the University Hills area. A 65 acre mixed use project. Just got its initial. Okay. From the city.

Ah, interesting. What’s the plan there? Housing, retail, commercial space. The idea is really to bring, a significant investment boost to that part of South Dallas. That’s good to see spreading the investment around, not just concentrating it in the usual spots, trying to lift other areas and closer in the Cedars neighborhood just south of downtown.

It’s seen a real comeback lately. It really has. Lot of interest there. A big piece of land just hit the market there. Given the location and the interest in the Cedars, that could be pretty significant. Maybe another big mixed use or commercial project. Yeah. Large sites like that, right next to the core, they’re getting harder and harder to find, so it’s availability is definitely gonna draw Attention could be impactful.

It’s not all new construction either. We’re seeing companies expanding, taking up space, adding jobs. Denton, for example. The city is looking at incentives for several companies, planning expansions there. Could be over 200 jobs potentially. That’s a positive sign for Denton shows. Businesses are still growing and cities are, willing to step up to keep them or attract them.

And Richardson landed a really big one. At and t they signed a lease for what, 186,000 square feet? Yeah. For a call center expansion. Bringing a thousand jobs with it. That’s one of the. Biggest corporate moves in Richardson lately, according to the reports. That’s particularly interesting, isn’t it? A large physical footprint for a call center.

You hear so much about remote work, but some operations, they still need that big centralized space, and DFW is clearly attracting those. Okay. Shifting gears slightly, let’s talk major redevelopment. Taking older assets and giving them a new life. The Dallas Convention Center Overhaul, that’s a huge one.

Massive multi-billion dollar project. It keeps moving forward. Just secured more funding, more contracts signed. That’s so critical for downtown revamping the convention center. The goal is to really boost that convention and meeting business, which helps hotels, restaurants, retail, everything down there and near Uptown City Place Tower.

Getting a huge makeover. The city council just approved almost $14 million in tax incentives for that. Yeah, a $445 million project, I think to turn that office tower into more of a mixed use hub. Exactly. That’s a great example of adaptive reuse. Taking an older office building, maybe one that’s struggling a bit in the current office climate and re-imagining it, adding other uses to revitalize it and the area around it.

But these giant projects, they’re not always smooth sailing. Look at the Fort Worth stockyards that. A billion dollar redevelopment plan. The partnership between Majestic and Hickman. Yeah. Apparently they’re caught up in a legal dispute now. That highlights the risks, doesn’t it? Even in a super popular historic area, like the Stockyards, big complex projects with multiple partners can hit snags.

Sounds like some construction is still going, but a dispute like that definitely adds uncertainty. Okay. Let’s zoom in now specifically on DFW Retail. Yeah, there’s, there’s a lot happening there beyond just the retail parts of those mixed use projects. We mentioned retail is, yeah, it’s a really interesting story in DFW right now, you’ve got parts that are doing really well, expanding even, and then other parts facing, pretty significant challenges on the positive side.

Barnes and Noble, the bookstore? Yeah. What about them? They’re actually expanding here, opening a new store in a part of DFW where they didn’t have one before, which. Fits their recent national strategy of actually opening stores, not just closing them. That is interesting. It suggests that for certain retailers, maybe ones that offer more of an experience like browsing books, physical stores still make sense, especially in growing areas.

They see an opportunity and cities fighting hard for the big retail anchors. Mansfield down south, they’re offering up to $8 million in incentives to try and lure new Costco. Wow. $8 million. Yeah, for a big 150,000 square foot warehouse club. That just shows you how valuable cities think those big anchors are.

Costco brings tons of traffic jobs, tax dollars, but they can really kickstart development around them. But then on the other side of the coin, you have older formats, really struggling town, east Mall out in Mesquite. Big regional mall. It was scheduled for a foreclosure auction, but got pulled off literally at the last minute.

Oof. That’s usually a sign of distress. Getting pulled means they bought some time. The owners are likely scrambling to work something out with the lender, maybe restructure debt, or figure out how to reposition the mall for, today’s retail world. It’s a reprieve, but the pressure’s clearly on.

Maybe the biggest bet on adapting retail is that whole experiential trend, universal theme parks. They’re still moving forward with that huge $7 billion. Theme park plan for Frisco, right? The one aimed at younger kids. That’s a massive long-term gamble on experience-driven real estate. If it works, it’ll be a total game changer for all the commercial development around it.

A huge new draw for the region. Okay, so let’s pull back a bit. How does all this stuff we’re seeing in DFW, how does it line up with the bigger picture, the national retail and CRE trends? DFW is definitely influenced by what’s happening nationally, for sure. I. And the national picture right now is it’s pretty mixed.

Some good signs, some definite warning signs, like reports from the big ICSC conference in Vegas recently. The big retail real estate convention sounded surprisingly upbeat, didn’t they? Yeah, that was the chatter I. Deal making was apparently pretty strong. Even with all the economic worries floating around, retailers are still looking to expand, apparently even competing for the best spots, which suggests maybe retail real estate is finding its footing again, maybe better than some other sectors, it seems that way.

And related to that, other reports mentioned investors are starting to, cautiously put money back into retail, deploying that dry powder they’ve been sitting on, especially for centers that are well leased and well located nationally. The numbers actually look pretty decent for retail overall.

In many places, vacancy is still relatively low. Rents are holding up or growing, especially for things like neighborhood centers, grocery anchored spots, standalone buildings, right? And landlords seem to be getting creative with backfilling spaces, bringing in grocers, fitness places, medical users, those experiential concepts.

We talked about a more diverse tenant mix. Grocery anchored centers especially seem to be the real bright spot. Consistent traffic makes them feel like a safer bet for investors. Definitely they provide that essential service. So foot traffic holds up pretty well even when consumers pull back elsewhere.

Okay. But now for the the less rosy side, the headwinds, and there’s a big one specific to Texas, let me guess. The Dallas Fed survey Yep. Showed Texas retail sales actually contracted sharply in May. The report said consumers are pulling back on non-essential spending, citing uncertainty, higher costs.

That’s a really important flag for DFW. You can have all the development boom you want, but if consumers in the state aren’t spending that directly impacts retailers on the ground. Something to watch closely. And then there’s the whole tariff situation. Yeah. Trade tensions, new tariffs that could eventually hit consumer’s wallets too.

Potentially dampen spending, even if vacancy is low now. Exactly. It just adds another layer of uncertainty for retailers and for the landlords who depend on their sales. Hard to plan long term. Another Texas specific issue. That potential ban on intoxicating hemp products like Delta eight, right?

The bill moving through the legislature, if that passes reports, say it could shutter something like 8,000 retail outlets across the state, mostly vape shops, CBD stores, places like that. Yeah, that would definitely create a wave of vacancies in those smaller retail spaces. Landlords would suddenly have a lot of, specific types of spaces to fill ripple effects for sure.

And filling space isn’t always easy. We hear about competition for good spots, but some markets like LA apparently are still dealing with a lot of empty big box stores. Needs creative thinking to fill those. It really underscores how much location and local dynamics matter. In retail, you can’t just paint the whole country with one brush.

We’re also seeing specific retailers and even big projects hitting rough patches. The American Dream Mega Mall in New Jersey. Its value reportedly got slashed by $800 million. Ouch. Yeah. Shows the financial strain. Some of those massive debt heavy retail complexes are under. McDonald’s is pulling the plug on most of its cosmic spinoff locations already.

That was fast. Shows how quickly strategies can shift if the initial hype doesn’t translate into sustainable business and closer to home at home group, the home decor retailer based here in Texas. Reports say they might be preparing for chapter 11 bankruptcy. Facing cash issues from tariffs, maybe softer demand.

Yeah, that’s concerning. It just shows that even within retail, which seems resilient overall, specific companies or formats can still be under immense pressure. So given all these moving parts, how are developers, cities, retailers, adapting? I. We’re seeing moves on the policy front and with data, right? Like that new Texas zoning reform bill, the one that could let developers build housing on land that was previously zoned only for commercial uses, like maybe an old shopping center.

Yeah. In certain cities. Dallas and Houston included. I. The idea behind it is, boost Housing Supply, maybe find a new use for underperforming commercial sites. But it also raises questions, right? Does it reduce the land available for future commercial needs? It’s a complex change. And on the data side, retailers seem to be getting much more sophisticated, definitely using analytics, foot traffic data, sales numbers, all that stuff to guide where they open new stores trying to take some of the guesswork out of it, especially when the economy feels uncertain.

Makes sense. Okay. Let’s pivot to the money side of things. Financing, investment. That’s really the fuel for all this CRE activity, absolutely critical. And the picture there is it’s nuanced, some caution, but also some clear areas of activity. Industrial and multifamily seem to be the favorites right now, office and parts of retail.

Maybe facing a tougher climate. Yeah. Reports from the Mortgage Bankers Association, the Fed, they confirm banks have definitely tightened up their lending standards for CRE, especially for office and hotels, citing the uncertainty, falling values. In some cases, we even saw that news about a major German bank pulling back from U-S-C-R-E lending altogether because of the volatility.

So less traditional bank lending available makes things harder for borrowers needing new loans or refinancing for sure. Pressure, but despite that investment volume actually went up in the first quarter, year over year, about 14%. Driven mainly by industrial and multifamily. Like you said, the forecast for the full year suggests growth is possible, but it really depends on conditions.

Staying stable and the capital that is flowing seems very selective. Wow. Going for the best quality assets and definitely favoring growth markets like the Sunbelt, like DFW. Exactly. It’s not like capital has dried up completely, but investors are being much, much more careful and picky than they were a couple of years ago.

They want proven fundamentals. Which opens the door for alternative capital, right? Private equity debt funds, KKR, raising that big $850 million credit fund was mentioned precisely. These non-bank lenders are stepping into the gap left by some of the more cautious traditional banks. They can provide financing for deals that might not fit the bank’s current criteria.

Family offices too, apparently increasing their real estate focus, looking for income from necessity retail or multifamily. But at. Adjusted prices. They’re playing a really important role right now in keeping deals moving. Different risk tolerance, maybe different timelines. Definitely. So what about property values overall?

Are we seeing a bottom? With the Green Street Index, which tracks read owned properties, it was basically flat over the last year after some earlier declines. So stabilization may be, at least for the higher quality stuff that index tracks doesn’t mean everything is fine. Of course, there’s still distress in older, weaker assets.

For sure and the office sector is where you really see that valuation pain still. Yeah. Just look at some recent sales suburban office parks selling for 50% off their previous value in places like the Bay Area, that Houston Tower sale at a big loss, a building in Maryland trading for half its prior price.

Yeah, those headlines really highlight the ongoing struggle in office driven by remote and hybrid work. It stands in pretty stark contrast to the relative stability or even growth we’re seeing in parts of retail, like grocery anchored or well located neighborhood centers. And it’s driving those office tourism conversions we mentioned earlier, like that project at five Times Square and potentially more here in Texas with that new bill trying to find a viable future for those buildings.

It’s adaptation in action, born out of necessity for that sector. Okay. One last piece on the macro level. Yeah. The risk to the financial system from all this CRE stuff. There were some scary headlines, studies pointing to banks at risk. But Fetcher Powell seemed relatively calm about it recently.

Yeah. He basically said the risks seem manageable overall for the banking system, acknowledged its concentrated more in smaller banks, but didn’t sound like he saw a systemic crisis brewing. Some analysts are even predicting bank CRE loan losses might peak later this year in 2025. So the sense is, yes, there will be pain for some lenders and some properties, but hopefully not something that takes down the whole system still.

It’s definitely something regulators are watching very closely. Okay. Wow. That was a lot. Let’s try to bring this all back home. Tie it together for you, the listener, especially if you’re active or interested in the DFW commercial real estate scene. So the DFW picture, big picture, it’s still one of pretty significant growth.

Ambitious development is happening. Large scale projects moving forward. Companies are expanding here. Bringing jobs, bringing people, pushing the boundaries of the metroplex outward and looking just at DFW retail. We see clear pockets of strength. Barnes and Noble, expanding into new areas. Cities like Mansfield competing hard to land at Costco.

Huge bets being placed on experiential retail like the Universal Park and Frisco. Real demand there. But, and this is important, it’s not all smooth sailing. Older formats like maybe townie small, are clearly facing pressure and you have those broader economic factors. The dip we saw in Texas, retail sales, potential tariff impacts down the road.

Those are real headwinds to keep an eye on. Then you look nationally, the CRE market overall is a mixed bag. Financing’s definitely tighter from banks, but alternative capital sources stepping up and retail. Nationally seems to be holding up better than many predicted, especially certain types like grocery anchor plus retailers and landlords are adapting, using experiential concepts using data.

So what does this all mean for you listening? I think it means that even with economic uncertainty swirling around, and even with the obvious problems in other sectors like office, the DFW market still shows real resilience and opportunity, especially in well located retail spaces that have adapted.

It’s fundamentally driven by population growth here and supported by very specific targeted investment in development. Yeah. It’s definitely not a market where you can just throw a dart. You really need to understand the specific sub-markets, the property types, the strategies that are working now Exactly.

Requires focus. Which brings us to maybe a final thought to leave you with something to chew on, given this really unique mix, we’re seeing, strong local growth signals right here in DFW, but happening against a backdrop of national economic headwinds. And you layer on top the way retail itself is evolving new strategies, new formats.

Where are you going with this? Is it possible that this specific moment right now is actually the ideal time to identify those prime DFW retail opportunities? The ones showing that resilience maybe get in before the broader market sentiment fully catches up to how well certain segments are actually performing here.

That’s a provocative question. It’s really about balancing that that ground level optimism in specific deals in some markets here with the, the necessary caution that the bigger economic picture demands, finding that sweet spot. Definitely something to think about as you watch how things unfold.

Thanks for joining us for this deep dive into the latest CRE News.

 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?

 Welcome to this deep dive. We’re here to pull out the really key commercial real estate news specifically what’s impacting the Dallas-Fort Worth retail market. Our goal today, it’s pretty simple. Give you a clear, quick rundown. For the week of May 16th, 2025, we wanna flag the important trends, the big deals in DFW retail.

And this is brought to you by Eureka Business Group? Absolutely. And the information we’re looking at this week, it gives a really interesting view of how different parts of commercial real estate are, connected here in Dallas-Fort Worth, especially through that retail lens. We’re definitely seeing signals from different asset types that all kind of feed into where retail is now and maybe where it’s heading.

Okay. Good place to start. How about the industrial market? The info we have suggests it’s. Generally pretty strong. How does that strength, in industrial usually filter down to the retail side here in DFW? It’s fascinating ’cause there’s such a direct link. A strong industrial market really supports an efficient retail system.

Think about it. All those warehouses, the distribution centers, the logistics hubs, they’re basically the backbone. They let retailers get their goods, store them, and ultimately get them to you, the consumer. We even saw a mention of the Cisco facility out on Meridian Parkway. That’s a big operation and it just highlights the kind of industrial muscle we have in the market, and that efficiency, it can mean lower costs, maybe better service for retailers, which, makes DFW even more attractive for them.

Yeah, that makes perfect sense. A smooth supply chain is. It’s everything for retail. Now let’s shift gears a bit to the apartment market. We saw some data talking about supply peaks in other US cities, different rank growth rates in places like San Francisco, Baltimore, Chicago back in April. How’s the Dallas-Fort Worth apartment seen looking in comparison?

And what could that mean for, say, retail demand locally? So when you look at Dallas Fort Worth, specifically the apartment market here tells its own story. The data pointed to, what was it, $541 million in sales just in Q1 2025. That’s a huge jump. 61.1% from the quarter before, and the year ending number for Q1 was big two, like $1.687 billion of 13% year over year.

So that kind of sustained activity, it suggests we’re keeping residents maybe attracting new ones. And for retail that’s your customer base right there. It’s a really key sign of a growing pool of consumers who need, shops and services near where they live. Strong apartment areas often become hotspots for retail.

Okay, so the apartment market health kind of builds the foundation for retail growth. The information also listed quite a few retailers we see around, bank of America, Walmart pickup, Ross Five Below even places like Lululemon, CVA, Potbelly, EOS Fitness. What does that mix? Tell us about the DFW retail landscape right now.

The sheer variety is what stands out. You’ve got banks, discounters, home goods, restaurants from fast food to fast casual gyms, even specialty shops like vape stores. It really indicates a broad range of consumer needs being met here, which suggests. A pretty healthy and resilient retail environment overall.

It caters to different people, different preferences, and for anyone in retail real estate like us at Eureka Business Group, it shows there’s potential for lots of different kinds of retail spaces to succeed across the metroplex. And there was also Dave and Busters mentioned that brings in the whole entertainment side of retail.

How important is that type of tenant these days? Oh, very important. Entertainment, retail like Dave and Buster’s, they act as destinations. They really drive foot traffic. These places become anchors, right? People go there for fun, for social reasons, and then the other businesses nearby, the shops, the restaurants they benefit to.

It really taps into that trend of experiential retail. Consumers want more than just buying something. They want an experience. The info also mentioned ICSC, the International Council of Shopping Centers. Why is that significant for DFW Retail? ICSC is basically the main trade group for the whole shopping center industry globally.

Their presence or activity in a market, it usually signals what the broader industry trends are. It’s also about networking, connecting developers with retailers, investors, everyone involved. So for DFW, having active ICSC members. Points to our market’s importance. Its attractiveness on a national, even international level.

You often see trends discussed at their conferences show up locally in development and leasing. Okay, now thinking about development, there was some visual suggesting new projects, maybe some established centers being looked at. Even if we don’t know the exact DFW location for all of them, what can we infer from that?

Seeing those kinds of visuals, whether it’s a potential new layout or existing center, it points to constant change, constant evolution in retail, real estate. New spaces mean ongoing investment, right? A belief that retail will keep growing in the region, and that definitely includes a market as strong as DFW and even older centers.

They often get redeveloped or get new tenants to keep up with what shoppers want. For us at Eureka Business Group, spotting these shifts early is well. It’s key for advising clients on where the opportunities are popping up. We also saw the Arbor Realty Trust logo mentioned that hints at the money side, the financing, so that Arbor Realty Trust.

They’re a major lender in commercial real estate. Seeing their names suggest that capital is flowing. Money’s available for building new retail, or maybe refinancing existing properties and that flow of capital. It’s a really good sign of the health and the perceived potential of the market, including retail right here in DFW.

Makes sense. And finally, let’s touch on those broader economic drivers. Things like business climate, lower taxes, incentives and access to consumer base Were highlighted. Why are those factors so crucial for retailers thinking about Dallas-Fort Worth? They’re really fundamental, aren’t they?

They’re the reasons businesses, especially retailers, keep choosing DFWA good business climate, lower taxes, maybe some incentives that directly hits a retailer’s bottom line, their ability to succeed long term. And when you combine that with a large, easy to reach customer base it’s a very powerful draw for any retailer looking to set up shop or expand DFWs population growth.

And its pro-business stance. Just keep making it competitive. The information also flagged growth, opportunity and real estate. I. Specifically things like building amenities or lower costs. How did those fit into the retail picture? Yeah. That perception of strong growth potential is huge. Retailers naturally gravitate to markets where they think demand will increase, and DFW has consistently shown that potential.

Plus, if the real estate itself is relatively affordable, maybe easier to find compared to other big cities, perhaps with modern features, that’s a big cost advantage. It makes DFW even more appealing if you’re trying to manage your operating expenses. And one last one, labor availability. How does DFW stack up there for retail workers?

Having enough qualified staff is obviously essential for any retailer. DFW generally has a large and pretty diverse labor pool. That’s a significant plus for retailers needing to staff stores manage operations smoothly. So yes, labor availability definitely adds to the overall stability and attractiveness of the DFW retail market.

Okay, so let’s try to pull this all together. It sounds like the DFW retail market is sitting on a strong foundation. You’ve got the industrial sector supporting it, the apartment market showing consumer demand. Is there a really diverse mix of retailers already here and growing ongoing development, showing confidence and these core economic factors making DFW attractive?

I. That’s a great summary. Exactly. All these pieces, they fit together to create this compelling picture for DFW retail and understanding how they connect. That’s really where we at Eureka Business Group focus our energy. We see these trends playing out on the ground, and that helps us provide the insights needed to, make smart decisions in this market.

So the quick takeaway for you listening. Industrial strength helps retail run smoothly. The busy apartment market means more shoppers. The variety of stores shows a healthy demand, new development signals future growth, and df W’s business friendly environment keeps drawing retailers in. It all highlights why, we at Eureka Business Group are so focused on a knowledgeable about this specific market.

Yes, these elements together really paint that picture of a resilient expanding retail scene right here. Our job at Eureka Business Group is to analyze all this complexity and turn it into clear, actionable advice for your goals in this really vibrant DFW market. And that wraps up this deep dive into the latest commercial real estate news impacting Dallas-Fort Worth retail, brought to you by Eureka Business Group.

We hope this focused look gave you some valuable perspective on the trends shaping things locally. And remember, Eureka Business Group is here as your authority for commercial real estate needs in DFW, particularly in retail. Feel free to reach out if you have questions or wanna discuss how we can help.

And just one final thought for you to chew on. Considering everything we’ve discussed today, what specific types of retail maybe sub-sectors do you think have the biggest growth potential here in the Dallas-Fort Worth area over the next year or so?

 Welcome to the Deep Dive. Glad to be diving in. This week we’re looking at commercial real estate news, focusing on the week ending May 9th, 2025, and really trying to see what it means for us here in the Dallas-Fort Worth retail market. Yeah, we’ve pulled info from, the usual CRE news sources, right?

And our goal, as always is to pull out the key developments, what’s really happening, and what could the impact be specifically for DFW retail. Okay. So one of the big picture items we need to talk about is, national Unemployment claims. Okay. There’s a CoStar graph out using Department of Labor data from April, just last month.

April, 2025. And what’s it showing? It shows initial claims spiking up a bit hitting around 225,000 near the end of April. And continuing claims are also, trending upwards, getting close to 1,850,000. Okay. Unemployment’s ticking up nationally. The obvious question for anyone in our field, especially retail, CRE, is what’s the FI out for consumer spending? Exactly. That’s the direct link. If more people are out of work or worried about it, that naturally impacts how much money they have or feel comfortable spending. So less spending means retail businesses feel the pinch. It does lower sales can make it harder for them to cover costs like rent.

And that eventually influences demand for retail space itself. And given how significant DFW is as a retail market, we absolutely need to keep a close eye on how these national numbers might start showing up locally. It’s a key indicator. Okay. But then. It’s interesting. Alongside these maybe slightly worrying economic signs, we’re also seeing things on the ground.

Like visual signs of retail activity. We are like Skecher Storefronts mentioned both in malls and strip centers. Yeah. And you’ve got the grocers, whole Foods market. Aldi still very much present and active. So how do we square that? Yeah. We’ve got rising unemployment claims, but then we see these retailers seemingly doing okay.

Or at least staying visible. That’s the nuance, isn’t it? Seeing Sketchers in different formats, for instance, might suggest they’re resilient. Or maybe it’s just, investment plans made earlier that are still playing out. Okay. So it’s not an immediate reaction. Not always. And having both a Whole Foods kind of premium and an Aldi.

More value focused, thriving side by side. That could say something specific about the DFW consumer base. Maybe adapting, looking for value, but still wanting options. So maybe not a broad downturn hitting everyone equally, but perhaps. Different segments reacting differently. Especially here in DFW, that’s quite possible.

You often see that retailers focused on value or essential goods. They might hold steady or even do better when people are being more careful with money. So the activity we’re seeing could reflect that. Or like I said, it might just be that lag time between, the big economic shifts and what you actually see happening with leases and store openings, real estate moves slower.

Makes sense. Now, let’s shift gears slightly. There was also mention or visuals of a big distribution warehouse and industrial facility. How does that fit into the retail picture, especially for DFW? Oh, hugely important. Logistics and distribution are like the backbone of retail now for both online and physical stores.

Absolutely. They support the traditional stores getting their stock, but they’re also critical for e-commerce getting goods directly to shoppers. Oh, and mentions in the news related to this global brands dealing with tariffs. The role of platforms like Shopify, it all points to needing strong supply chains.

And DFW is a major hub for that, right? The massive hub, our location, the transport links, it makes Dallas-Fort Worth vital for moving goods around the country, even globally. So seeing investment there supports the whole retail ecosystem. Got it. And while retail is our main focus today, we also saw mentions of.

Modern office buildings. Yeah. Mixed use developments. They’re not strictly retail, but do they influence it? They definitely do. Think about it, new office buildings bring daytime workers, people who need lunch spots, coffee, maybe run errands nearby. Exactly. I. That foot traffic supports surrounding retail and mixed use projects where you combine living, working, and shopping.

They create their own little ecosystems precisely. They build in a customer base. So continued development of offices and mixed use in DFW. It signals ongoing investment in creating these active environments, which ultimately helps the retail component thrive. Okay, so let’s try and summarize what we’re seeing for the week of May 9th.

As relates to DFW retail feels like a bit of a mixed bag. It does. You’ve got the national unemployment numbers creeping up, which you know, raises a flag about consumer spending maybe cooling off. But at the same time, at the same time, we see physical retailers, different types, still active, and we see ongoing investment in the things that support retail, like logistics and in broader commercial projects that create retail demand.

So for anyone involved in DFW retail. Real estate investors, developers, brokers, tenants, understanding both sides of this is key, isn’t it? You have to weigh those potential macroeconomic headwinds against the actual activity and investment happening on the ground here. It requires a nuanced view, not just looking at one piece of data.

Definitely you need that balanced perspective to make smart decisions right now. So maybe the final thought for you, our listener, is this, how do you see these forces interacting, the potential caution from rising unemployment nationally versus the visible signs of retail life and development here in Dallas-Fort Worth?

Yeah. Where do the challenges lie? And importantly, where might the opportunities be for retail businesses and commercial real estate in DFW over the next few months? It’s about figuring out that balance, right? Between maybe shifting consumer habits and that ongoing need for physical stores, services, and the logistics to back it all up in our market.

That’s the puzzle to watch right now.