Record Occupancy Numbers For Retail Real Estate
FORTH WORTH, TX – The retail real estate market in Dallas-Forth Worth when into the COVID-19 pandemic with record occupancy numbers. As a result of the hit from the pandemic to date, there is less than the downturn during the Great Recession of 2008-09. This information is based on a mid-year report from Weitzman, a company that specializes in the Texas retail estate market.
The overall market occupancy was 92.6 percent. It is down from 93.4 percent at the end of 2019. The occupancy dropped to 86 percent during the downturn of 2008-09. Conservative retail construction helps the market from oversupply. DFW retail market inventory of 200.2 is based on the occupancy rate.
Retail Businesses Surviving Challenges Caused by COVID-19
The question is how are the retailers, restaurateurs, and retail landlords dealing and surviving the phenomenon of greater reduced shopper traffic, forced closures, and reduced occupancy?
There are some taking advantage of the Paycheck Protection Program. While others are working on rent deferrals and other accommodations. However, new retail construction has slowed but not stopped. In 2020 so far, the market has been hit with retailers who were already struggling announcing closures.
JCPenney is closing its Music City Mall location in Lewisville, Belk closed its Dallas Galleria store in March. Nordstrom will close its Hurst location in 2021. Six stores will close. Fort Worth-based Pier 1 Imports is going out of business, closing 14 area stores. Bed Bath & Beyond announced it is closing hundreds of stores but hasn’t yet identified local closures.
The region will see more closures and a steeper decline in occupancy, if the COVID-19 pandemic goes into 2021, according to experts. There is no way to tell how long it will last. But it’s been said the downtown would possibly end with a vaccine or better treatment for COVID-19
If the pandemic stretches into 2021, the region will see more closures and a further decline in occupancy, experts say. No one knows how long it will last, but the downturn could end with a vaccine or better treatment for COVID-19.
“Until that sense of safety is achieved, and consumer confidence increases, it’s up to the retail real estate industry and national, state, and local governments to help lessen the massive challenges faced by retailers and restaurants during the current pandemic,” said Herb Weitzman, executive chairman of Weitzman.