Despite the so-called death of retail, which includes this year’s bankruptcy by Toys R Us returning nearly 350,000 sq. ft. to the local market, Dallas/Fort Worth’s retail fundamentals are strong. Occupancy dipped a mere 10 bps during the quarter following the addition of more than 580,000 sq. ft. of new deliveries, which came online significantly pre-leased.
IKEA scuttles plans for fort worth store
The Swedish furniture giant receded their decision to open a 289,000 sq. ft. location in Fort Worth, scheduled to be a part of a $100 million, 478,000 sq. ft. mixed-use plan. Slated for a summer 2019 opening, this would-be IKEA store has joined the likes of other recently scrapped stores in Nashville, TN, Glendale, AZ and Cary, NC citing a “rapidly changing retail environment.”
DFW’s ongoing Economic/Jobs expansion
For the better part of the last decade, the story of DFW has been one of swift annual growth. The metro added 146,000 new residents in 2017, more than any U.S. metro according to the U.S. Census. Year-to-date, the Metroplex posted a net gain of 55,000 new payrolls with unemployment below 4% since February 2017.
The Sears spiral persists as more store closings are announced
Once the largest retailer in the U.S. has slashed its store count in half over the past five years. The embattled department store chain is quietly closing another 72 stores, in addition to the 166 stores already planned for the chopping block this year. The closures include three stores in North Texas located in Denton, Fort Worth, and Lewisville.