Retail & Restaurant
In Downtown, our retail and restaurant distinction is due to diverse culture and a savvy for development. We’ve curated one of the most outstanding collections of restaurants, bars, shops and experiences by providing support for entrepreneurs and a philosophy founded on growth.
Average retail rent per square foot
Newly opened or reopened restaurants
Restaurants opening in the next quarter in Downtown
Deloitte’s State of the US Consumer report shows a 5% dip in consumers perceptions of safety from late November 2021 to the end of the year, fueled by the Omicron variant.
While those surveyed claimed they felt hesitant about going out to shop, dine, fly, or stay at a hotel, their attitude did not curb spending.
Holiday spending rose 8.5% over 2020, according to Mastercard SpendingPulse.
While there is concern that strong holiday spending could bring decreased traffic in the first quarter of the new year, some experts expect cabin fever combined with holiday gift cards and ithe usual gift return spike will keep shopping areas bustling in Q1 of 2022.
U.S. News & World Report noted that consumer confidence rose in December and ended the year on a strong note. The Confidence Index sat at 115.8 while the Expectations Index rose to 96.9 from 90.2, showing the positive consumer view of the short-term economic outlook.
“Consumer confidence improved further in December, following a very modest gain in November,” Lynn Franco, Senior Director of Economic Indicators at The Conference Board, an economic research group, said in a statement. “The Present Situation Index dipped slightly but remains very high, suggesting the economy has maintained its momentum in the final month of 2021. Expectations about short-term growth prospects improved, setting the stage for continued growth in early 2022. The proportion of consumers planning to purchase homes, automobiles, major appliances, and vacations over the next six months all increased.”
Retail leasing is up in the City Center with interests from local one-offs, and national credit juggernauts alike.
Retail vacancy crept up a bit from 4.4% to 5.3% mainly due to new space coming online in the East Quarter. Interested tenants continue to look into Downtown spaces in and around the AT&T Discovery District, the Dallas Farmers Market, The Dallas Arts District.
Openings in the third quarter led to more leases in the fourth.
The interactive art exhibit Sweet Tooth Hotel announced that it will open later this year on Elm Street and Toussaint French Brasserie at the Saint Elm Hotel will be open by the time of this publication. More leases and potential pop-ups are in the works to activate Downtown throughout 2022.
Retail asking rents remain steady at an average of $24.79 per square foot. Generous terms offer great opportunities for local startups and other eclectic retailers.
Vacancy within new construction has remained low, with the majority of new projects incorporating various forms of retail and grocery, including Atelier and 300 Pearl. Leasing of existing space continues with new additions like Parterre on Elm Street, Uno Más on Main, and Rokwood nightclub on the west side of Downtown all welcoming guests.
Interest in the market continues to increase as more tours are being conducted and terms are being discussed for available storefronts throughout Downtown.
The bevy of events and programming at the AT&T Discovery District and throughout Downtown including public art, park activations, parades, not to mention Pegasus City Brewery’s Octoberfest, and DDI’s Trick-Or-Treat and Downtown Stocking Stroll have increased foot traffic throughout the submarket.
The restaurant industry is in a hiring mode now as many eateries are working diligently to hire and train staff.
Along with an increase in lunch, evening and weekend activity, many Downtown restaurants have begun to take advantage of the city’s new street seats program to expand their service areas onto parklet patios. As shoppers and diners return to Downtown streets, they are finding new options.
In Dallas’ trendy restaurant landscape, sometimes what was old is new again.
The fourth quarter welcomed an old friend back to Downtown. At the infamous corner where Ross meets Ervay and Akard, you will find a gold elevator that will take you down about 13 feet. When the doors open, you will be greeted by a pianist and a smiling maître d’ ready to seat you at Dakota’s, one of the most unique steakhouses in Dallas. We’re happy to welcome Dakota’s back with a new owner (Meredith McEneny), new chef (Ji Kang), and new menu.
Another recent opening at another unique intersection: Where Cesar Chavez meets Jackson and Commerce sits one of Dallas’ flatiron-shaped buildings, the new home of National Anthem, Nick Badovinus’ latest restaurant.
For a complete list of open retailers, please visit:
downtowndallas.com/open-businesses.
