IRR-Fort Worth Mid-Year Viewpoint 2015 Local Market Report - Retail
The Fort Worth retail market is strengthening and has moved from recovery into the expansion stage within the market cycle. Strong population growth within the region, low unemployment, and expanding business within several key industry sectors has created a favorable climate for retail. Overall vacancy rates have been on a decline for the past several years and are expected to remain relatively unchanged over the coming months. Overall rental rates continue to improve and will likely continue on this inclination over the next year. Absorption turned positive in the first quarter of 2014 and is expected to remain positive, even with a recent increase in construction activity.
Retail projects are under construction in both downtown Fort Worth and in the suburban areas, with an estimated 695,000 square feet expected to be completed over the next year. Both cap rates and discount rates decreased slightly over the past 12 months and will likely stay relatively flat through the second part of 2015.
North Fort Worth continues to see new retail development with the recently completed second phase of Alliance Town Center, which includes nearly 250,000 square feet of retail space. Additional projects include North Tarrant Marketplace nearing completion in North Richland Hills, Park Village in Southlake, and Clearkfork, a new master-planned, mixed-use development in west Fort Worth that will include offices, residences and up to 1.2 million square feet of retail space upon completion. Other large retail developments under construction in the Fort Worth area include Glade Parks in Euless which will encompass 800,000 square feet at completion and Presidio Towne Crossing in northwest Fort Worth which includes 1 million square feet. Given continued increases in occupancy, new construction, and rental rates, the Fort Worth retail market should continue to expand through 2015.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.