What's Happening?
Texas is experiencing a significant boom in retail real estate construction, driven by a positive net domestic migration rate of 0.9% since January 2021. According to Colliers, over 17 million square feet of retail space is under construction in Texas, particularly in major cities like Dallas, Houston, Austin, and San Antonio. This contrasts with the national trend, where retail construction remains historically low. Austin leads in construction intensity, with 2.8% of inventory under construction, and has achieved high occupancy rates due to rising population and household incomes.
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Why It's Important?
The retail construction surge in Texas reflects the state's growing economic and demographic influence. As more people migrate to Texas, the demand for retail spaces increases, attracting businesses and boosting local economies. This trend highlights Texas's role as a key player in the national retail market, potentially influencing investment strategies and economic policies. The construction boom also underscores the importance of adapting to demographic shifts and consumer needs, which can drive economic growth and urban development in the region.
