Overbuilding Not Evident as in Other Cycles

Castle Hills Marketplace’s Lewisville location opened in 2015 as the first phase.

DALLAS—Every up cycle before this one ended due to overbuilding. Thus far, that is not happening in the retail sector, according to the mid-year retail report by The Weitzman Group/Cencor Realty Services. Dallas/Fort Worth’s retail market as of mid-year 2016 continues to report overall occupancy right at 91.6%, thanks to new pre-leased construction that adds to occupancy, the backfilling of large retail vacancies and only a few retail closings, most notably Sports Authority and Fresh Market.

The Weitzman Group/Cencor Realty executive chairman Herbert D. Weitzman tells GlobeSt.com: “In my experience, we’ve seen every major upward cycle for DFW retail halted by a wave of overbuilding. We’re not seeing that in this cycle, and because of the balance in supply and demand, we expect this positive cycle to continue for a good while.”