Luxury retailers were riding high a year ago, having enjoyed several years of growth following the COVID-19 pandemic. Today? New headwinds have hit this slice of the retail sector, most notably economic uncertainty and concerns over tariffs.

What do these challenges mean? That’s not yet determined. JLL in its U.S. luxury retail report, released earlier this week, said that while some luxury brands have reported falling revenues, economic concerns have not yet led to a significant decline in luxury store openings.

According to JLL’s report, luxury retailers are opening new locations at a faster pace than they did in the first half of 2024. In the first six months of this year, newly opened luxury square footage jumped by 65.1% when compared to the same period a year ago.

However, the last quarter of 2024 was even more active. JLL said that luxury openings in the fourth quarter of last year totaled 195,563 square feet, the highest quarterly total that JLL has ever recorded in the luxury retail market.

And so far this year? In the first quarter of 2025, retailers opened 146,888 square feet of new luxury retail space across the United States, JLL said. In the second quarter of this year, they opened 79,625 square feet of new luxury space. That’s a total of 226,513 square feet of new luxury openings in the first half of this year.

Challenges do loom, though. JLL reported that Capri Holdings anticipates an $85 million increase in cost of goods sold for fiscal year 2026 because of tariffs, while Tapestry’s Kate Space brand is impacted by the 20% Southeast Asian import tariffs, something that is prompting the retailer to reduce its handbag styles by 30%. The company is projecting a total $160 million tariff-related cost for fiscal year 2026.

At the same time, LVMH says that it is increasing local production in the United States by opening a second Louis Vuitton facility in Texas to reduce import costs.

Much of the strength of the luxury retail market today is fueled by the shopping habits of Gen Z and Millennials, according to JLL.

JLL reported that Tapestry’s Coach brand notched a 14% increase in sales during the fiscal fourth quarter of 2025 and a jump of 10% for the full year. Gen Z and Millennials make up 60% to 70% of the brand’s new North American customers, JLL says.

Prada Group’s Miu Miu saw its retail sales surge by 49% in the first half of 2025, with a sizable portion of these sales coming from younger consumers.

Partners Real Estate arranged a 20,555-square-foot industrial lease for HydroGraph at 2101 East St. Elmo Road in Austin, Texas.

Partners’ Eric Sheaffer represented the tenant, HydroGraph in the transaction. The new lease will provide HydroGraph with a strategic location to support its operations and growth throughout greater Central Texas.

 JLL Capital Markets secured fixed-rate acquisition financing with an insurance company for 3555 Timmons, a 227,064-square-foot, Class-A office building in Houston’s Greenway Plaza district.

JLL worked on behalf of the borrower, DML Capital, to secure financing for the acquisition.

The property, built in 1982 and comprehensively renovated in 2017 and most recently in 2024, showcases modern amenities throughout its 227,064 square feet of rentable space. The building has undergone significant capital improvements, including a complete first-floor lobby renovation, restroom and corridor upgrades throughout floors one through 14, installation of two new 350-ton York chillers and the addition of a state-of-the-art conference center. These enhancements have transformed the building into a contemporary workspace featuring sleek, modern design elements and a welcoming ambiance for tenants and visitors.

The building is currently 95 percent leased and anchored by the Houston-Galveston Area Council, which occupies approximately 34 percent of the building. The tenant roster includes a well-diversified mix across industries, including government, finance, legal services, oil and gas, consulting and logistics, minimizing overexposure to any single sector.

Located within Houston’s inner loop, the property provides unparalleled access to the city’s most affluent residential neighborhoods, including River Oaks, West University Place and Afton Oaks. The office tower sits on 1.84 acres and commands exceptional visibility with frontage along both Timmons Lane and Edloe Street, benefiting from exposure to more than 50,000 vehicles per day.

Additionally, the property benefits from its prime location within the Greenway Plaza master-planned commercial district, offering tenants immediate proximity to upscale retail and dining destinations, including the Shops at Greenway, River Oaks Shopping District, Highland Village and Rice Village.

The JLL Capital Markets team was led by Managing Director Michael Johnson and Director Michael King supported by Analysts Scot Sarlin and James Lovell.

Northmarq’s Dallas Multifamily Investment Sales team, led by Taylor Snoddy, Eric Stockley and Charles Hubbard, brokered the sale of the 248-unit Shiloh Oaks apartments in Garland, Texas. 

Northmarq represented the seller, a California-based investor, and facilitated the sale to Rise48 Equity, an Arizona-based investment group.

Northmarq’s Debt + Equity team of Kevin Leamy and Lauren Bresky secured acquisition financing on behalf of the buyer.

Located at 2379 Apollo Road, Shiloah Oaks is situated on over 10 acres and was built in 1983. The multifamily community features brand-new amenities and features, including updated kitchens with quartz countertops, ADT Smart Locks and a designer lighting package. Residents enjoy close proximity to local restaurants and attractions and on-site amenities, such as a pool, fitness center, playground and more.

RM Crowe simultaneously sold and formed a 6.84-acre parcel at 4250 N Belt Line Road in Irving, Texas, which will be redeveloped into a 118,032-square-foot Class-A industrial facility — a strategic addition to one of DFW’s most active industrial submarkets. RM Crowe will remain a key player in the project as a general partner and equity investor.

The project is a joint venture between RM Crowe, Foundry Commercial and Crow Holdings (which is providing additional equity). Holt Lunsford Commercial has been selected to handle leasing for the project, bringing market-leading insight and reach to attract top-tier tenants.

The development will replace an existing structure with a modern industrial facility featuring 32-foot clear heights and highly functional design tailored to meet the needs of today’s logistics, manufacturing, and e-commerce users. Demolition is scheduled to begin in September 2025, with project delivery anticipated by Summer 2026. The new facility will help meet continued demand for Class A space in the Dallas-Fort Worth industrial market — one of the most competitive and fastest-growing in the country.

Hillwood, developer of the 27,000-acre AllianceTexas master-planned development in Fort Worth, Texas, announced two new Class-A speculative industrial buildings — Alliance Westport 15, a 798,494-square-foot facility at Mobility Way and Intermodal Parkway, and Alliance Gateway 34, a 310,036-square-foot building at Westport Parkway and Independence Parkway.

These buildings mark the next step in Hillwood’s industrial design and delivery strategy to deliver next-generation industrial space across AllianceTexas for new and existing customers looking to relocate or expand operations. Designed for modern logistics and manufacturing users, both facilities feature top-tier specifications and benefit from direct access to major transportation infrastructure. Alliance Westport 15 offers direct connectivity to Intermodal Parkway, FM 156, Perot Field and the BNSF Railway’s Alliance Intermodal Facility. Alliance Gateway 34 is located four miles east, between U.S. 377 and the recently expanded State Highway 170.

Construction is scheduled to begin on both buildings in September, with completion expected on both in 2026.

“Demand at AllianceTexas remains strong among top-tier logistics and manufacturing users,” said Bill Burton, executive vice president of Hillwood. “Alliance Westport 15 and Alliance Gateway 34, located in two distinct industrial sectors within AllianceTexas, reflect our ongoing strategy to deliver move-in-ready Class A facilities with enhanced power and infrastructure resilience. Maintaining a pipeline of high-quality speculative space is essential to supporting both new and existing customers.”

These projects follow two recent speculative space milestones at AllianceTexas:

• SGS Studios, in partnership with Hillwood, launched a 450,000-square-foot film and television production campus — now the largest operating studio facility in Texas — at the previously named Alliance Center East 2 & 3 speculative sites (completed in 2024).
• Wistron, one of the world’s largest electronics manufacturers, announced plans for two AI supercomputing facilities within AllianceTexas, including Hillwood’s Alliance Westport 14 speculative project (completed in July 2025).

These achievements also underscore the City of Fort Worth’s leading role in attracting new industries.

Alliance Westport 15 and Alliance Gateway 34 will leverage AllianceTexas’ world-class transportation infrastructure, anchored by the AllianceTexas Mobility Innovation Zone (MIZ), Perot Field Fort Worth Alliance Airport (AFW) and the BNSF Alliance Intermodal Facility. As a one-of-a-kind ecosystem, the MIZ provides mobility innovators with infrastructure and strategic partnerships to scale and commercialize new technologies and propel transformational mobility solutions. AllianceTexas’ supply chain network amenities include the FedEx Ground Hub, two UPS Ground Sort Hubs, the FedEx Express Southwest Regional Air Hub and the Amazon Air Regional Hub.

Alliance Westport 15 will benefit from Denton County’s low-tax cost structure and up to 60 percent drayage cost savings due to its proximity to the Alliance Intermodal Facility. The facility will include a 40-foot clear height, 570-foot building depth, 60-foot loading bays and a cross-dock configuration with two 190-foot truck courts and land to construct a third. The building will initially provide 199 trailer parking spaces and 360 car parking spaces.

Alliance Gateway 34 will be 310,036 square feet, divisible to 146,947 square feet and will include a 36-foot clear height, 310-foot building depth, 60-foot loading bays and a rear-load configuration with a 190-foot truck. The building will initially provide 73 trailer parking spaces and 286 car parking spaces. Spec tenant improvements, including +/-2,500 square feet of main office space, LED warehouse lighting, warehouse power and dock door packages, will be constructed with the shell building, allowing a customer to immediately occupy and operate within the building upon completion of construction.

The buildings are designed byGSR Andrade Architects, Westwood Professional Services provided the buildings’ civil engineering design, and Hillwood Construction Services will serve as the general contractor for the projects. Frost Bank financed Alliance Westport 15, and Alliance Gateway 34 is financed by b1BANK.