The Evolution of Brick-and-Mortar: Hybrid Retail Experiences in Texas

Why This Matters for CRE Professionalsin Texas

Texas is a national bellwether for commercial real estate trends, andDFW—home to over 8 million residents and some of the most ambitious retaildevelopments in the country—is leading the charge. National and regionaltenants alike are rethinking their physical presence, not as simpledistribution points, but as brand experience hubs, logistics nodes, andhybrid storefronts. This evolution has significant implications forlandlords, developers, brokers, and investors navigating the retail CRElandscape in 2025.

The Hybrid Model: Retailers Aren’tJust Selling—They’re Engaging

The modern shopper isn’t choosing between online or offline—they wantboth. Retailers are responding with hybrid models that include:

• BOPIS (Buy Online, Pick Up In     Store)
• Curbside and locker pickup
• Experiential showrooms
• In-store tech integrations like     AR, mobile checkout, and digital wayfinding

These approaches are changing how retailers value and design physicallocations. Instead of just focusing on square footage, they prioritize:

• Foot traffic quality over     quantity
• Digital conversion support
• Proximity to logistics or     affluent residential pockets

Case Studies: Texas Retailers Leadingthe Shift

1. Neighborhood Goods – Plano, TX

Located at Legacy West, Neighborhood Goods blends boutique experiencewith e-commerce infrastructure. It rotates DTC brands in a showroom-styleenvironment and provides in-store events and community programming. For CREstakeholders, this model shows how temporary space with tech-poweredturnover can create a buzz and drive sustained foot traffic.

2. H-E-B – North Texas Expansion

While known as a grocery giant, H-E-B’s new locations are models of hybridfunctionality. Many include curbside pickup lanes, micro-fulfillmentcenters, and event spaces for cooking demos and communityengagement. This blend of logistics and experience signals a shift in what anchortenants bring to a retail center.

3. Dick’s House of Sport – Katy, TX

More than just a sporting goods store, this format includes climbingwalls, golf simulators, and turf fields. It’s not just a store—it’s avenue. Dick’s move into experience-first retail illustrates the CRE trendtoward flexible, modular space that supports leisure and interaction asmuch as sales.

Rethinking Store Footprints and TenantMix

Retailers moving toward hybrid experiences are reducing squarefootage—but increasing utility. Some examples:

• Digitally native brands entering physical retail with “guide     shops” (e.g., Warby Parker, Bonobos) need only 1,000–2,000 SF, but     demand prime visibility and tech infrastructure.
• Traditional big-box stores are subdividing or reformatting     into multi-tenant pods or adding drive-thru lanes.
• Medical-retail hybrids (e.g., MinuteClinics in CVS,     wellness pop-ups) are joining the retail mix, demanding non-traditional     layouts.

For CRE professionals, this means smaller, smarter footprints arein demand—often with higher TI (tenant improvement) requirements but longer-termupside in retention and adaptability.

Site Selection: The New Criteria

In the hybrid era, the “location, location, location” mantra hasexpanded. Now, tenants want:

• Demographics that support     lifestyle branding (young families, digital natives)
• Co-tenancy with service-oriented     or health-focused tenants
• Accessibility for delivery and     curbside infrastructure
• High-speed internet and IoT     compatibility for tech integrations

Submarkets like Frisco, Mansfield, and Grapevine are seeing newretail nodes emerge, especially near master-planned communities, last-milehubs, and transit corridors.

What It Means for Landlords andDevelopers

To thrive in 2025, landlords must adapt to:

• Shorter lease terms with high     buildout flexibility
• Stronger demand for data (foot     traffic, dwell time, mobile conversion)
• Increased value on modular or     mixed-use designs
• Amenity-rich retail environments, even for neighborhood centers

Developers, meanwhile, have an opportunity to differentiate withtech-forward design, open-air layouts, and zoning for flexibleusage.

Final Thoughts: The Store Is NotDead—It’s Just Smarter

Texas retail isn’t shrinking; it’s specializing. As the linebetween online and offline continues to blur, brick-and-mortar is evolvingfrom transaction center to touchpoint—and in DFW, it’s doing so faster thanalmost anywhere else.

For CRE professionals, staying ahead means embracing this shift:understanding how hybrid retail reshapes deal structures, design priorities,and tenant expectations.

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