Over 1 million sq. ft. of retail space has become vacant since the beginning of July, mainly was mainly attributed to several big box closures. Despite this high amount of negative absorption, occupancy only dropped 70 basis points (bps) to 93.1%.
The increase in available retail product has created more opportunities in the tight DFW market, causing more tenants to look at expanding into the metroplex and an uptick in deal flow.
DFW has seen one of the strongest rebounds amongst the major U.S. metros. After hitting a record high unemployment rate of 12.8% in April, DFW has almost cut that number in half, ending September with an unemployment rate of 6.3%, lower than the national rate of 8.4%.
Following the summer’s wave of COVID-19 cases that restrained economic activity in July, key indicators suggest activity rebounded in August and into September. The U.S. consumer is the star performer with some measures of retail sales now on a par with year-ago levels.