The retail sector is set for an even stronger year as grocery is set to deliver an even greater impact in 2026.
In 2026, the retail industry is forecast to hit 95.4% occupancy, according to Bob Young, executive managing director at Weitzman, a Dallas real estate firm. That would be up from 2025’s 95.3%, a record-setting mark that’s based on data from spots that are 25,000 square feet and more.
Already, the Dallas-Fort Worth area is coming off another “year of the grocer” — and it’s set for another, as companies step up to build sites or reimagine old retail space. In 2025, the region landed 18 shops after getting seven new grocery store projects in 2024, Young said.
“We show 34 grocers in the works in 2026 and into 2027,” Young said. “From our lens, D-FW is definitely the most active grocery market in the entire … country.”
D-FW Retail News
The explosive growth comes as the industry looks to satiate a population that’s been increasing for years amid immigration — both domestic and international. The grocery industry once saw smaller numbers with 13 grocery store additions between 2019 and 2023, including zero in 2021.
Locally, H-E-B has been a major investor with new stores throughout North Texas, including its Joe V’s Smart Shop for price-conscious shoppers. But there have been many others with Sprouts Farmers Market, Walmart, Target and Trader Joe’s, among others.
More than 82% of new space last year was built for traditional, specialty and super-store grocers.
“Remember, retail follows rooftops,” Young said.
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While the Dallas-Fort Worth area has been a standout, other major city metros, including Austin, have shown strong retail numbers with around 95% occupancy or better.
“Texas retail is firing on all cylinders,” he said.
In D-FW, while grocery is the most dominant, other types of retail are evolving as well. Malls are recovering from the closure of department stores in the past decade or so, Young said, noting they’re stable with occupancy of 93.3%.
Today, malls are often more entertainment-focused with examples including the new Netflix House at Galleria Dallas. “While a handful of weak malls still remain, these are most likely candidates for redevelopment,” Young said.
Overall, construction on new space deliveries in 2025 covered about 2.4 million square feet, up from 1.5 million square feet in 2024. And new stores are set for 2026, including H-E-B, Kroger, Walmart and Ikea, along with BJ’s Wholesale Club, a new entrant to the local market.
While the market in D-FW may look strong, Young noted there are challenges, including some economic softness with the job market along with inflation and tariffs.
“The runway looks clear but watch out for the potholes,” Young said.
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