Texas Comes Out on Top in Retail Space Added for 2016
TEXAS – As retailers look to expand and continue the race to win over consumers’ hearts, prime real estate and flourishing markets can be key to a successful strategy. As one grocery outlook report has outlined, Texas looks to be the new leading focus for expanding chains.
According to JLL’s 2017 Grocery Tracker, buy-side growth over 2016 put Texas as the most coveted state, with 3.04 million-square-feet of new grocery space. This number accounts for little over 16 percent of the total growth throughout the year across the U.S.
JLL emphasized that Texas is particularly attractive to retail strategies, as strong residential growth allows for chains to potentially capitalize on the strong shopper base and inherent opportunities.
“Grocery operators have been capitalizing on Texas’ continued population growth, especially in metro areas like Houston and Dallas. 2016 data revealed that the Houston market experienced record single-family sales for the second time in three years and is second in annual new home starts behind Dallas,” the report stated.
The chains to lay the biggest claim on the Texas market were Kroger and H-E-B, specifically in the Houston and Dallas regions. JLL note that Kroger opened around 35 percent of all new Texas stores in 2016, with mainly a suburban focus.
Close behind the Texas appeal for growing chains in 2016, came California. The state boasted almost 11 percent of total square footage added last year, with a heavy focus in Southern California.
As the buy-side sector looks forward to the rest of 2017, JLL stated that a continued focus will be convenience. As consumers shift their needs and the way they shop, the chains at the top of the list are projected to be the ones who match and meet those consumer requirements. Value-added, grocery delivery, speed through technology, and urban concepts will all be ongoing points of focus.
To download the report and read the rest of JLL's retail insights, click here.
Will Texas stay on top for 2017, or will another state soon take over as key expansion territory? AndNowUKnow will report.