Consumers made $12.75 billion in online retail purchases during the five-day period from Thanksgiving Day to Cyber Monday, according to a study by Adobe. This represents a 14.7% increase from the same period last year. Black Friday registered the greatest growth in online sales, rising nearly a quarter (21.6%) above 2015's level. And, a record 40% of online sales on Thanksgiving Day occurred on mobile devices, according to Adobe. Of the $771 million spent via mobile, 67.5% occurred through smartphones and 32.5% on tablets.
This growth highlights the consumer trend towards online retail, but not necessarily away from brick-and-mortar shopping. The majority of these online purchases were made from established retailers with brick-and-mortar locations, according to ICSC. Many of the nation's largest physical retailers invested heavily in expanding e-commerce offers in 2016, which both facilitated holiday online spending growth and helped to capture more of it.
Despite online sales growth, many brick-and-mortar segments also reported traffic and sales gains, says a report by CBRE. Many retailers contend that e-commerce is helping raise in-store conversion rates. Among malls, ICSC reports that a higher proportion of US adults shopped in physical stores during the Thanksgiving and Black Friday period this year compared with last year (57% vs. 51%). Affirming the trend, several major mall operators reported year-over-year traffic and sales increases across portfolios. However, this growth is increasingly concentrated in prime assets such as super-regional malls, while many class-B and C centers face flat or declining traffic—a trend at work throughout the year. Among retailers, many brands found that conversion rates were actually higher than in previous years, as consumers increasingly leverage online channels to browse before purchasing in-store. This raises the proportion of in-store customers who actually spend and offsets flat or declining traffic trends.—Lisa Brown
BY THE NUMBERS
SHREVEPORT, LA—The average asking rental rate per square foot per year for office properties as of midyear was $13.01. This represents an increase of 1.5% compared to the prior three months, with an increase of 1.5% year-over-year. Countywide average rental rates are 1.3% higher at $12.93 per square foot per year for office properties currently for lease, according to LoopNet.
BENTONVILLE, AR—The average asking rental rate per square foot per year for retail commercial properties as of midyear was $17.58. This represents a decrease of 1.6% compared to the prior three months, with an increase of 2.1% year-over-year. Countywide average rental rates are 2.9% higher at $16.52 per square foot per year for retail properties currently for lease, according to LoopNet.
NEWS AND NOTABLES
HOUSTON—David Rodriguez has joined Waterman Steele Real Estate Advisors as a vice president. Rodriguez began his commercial real estate career in 2013 with Houston's KW Commercial. His primary focus is on retail land development, multifamily and owner-occupied real estate. Prior to commercial real estate, Rodriguez was a vice president commercial lender for NationsBank/Bank of America, Banco Popular/BBVA Compass Bank and Bank One/JP Morgan Chase.
OKLAHOMA CITY—BRAVO! Group Services, one of the largest privately held facility support companies in the country, has added Susan Justice to its team as director of business development for the Midwest. Justice will work to expand the firm's client portfolio in Oklahoma and Arkansas, focusing her attention on Oklahoma City, Tulsa, Little Rock and Bentonville, AR.
DEAL TRACKER
LAKEWOOD, CO—Suzanne Jones, senior vice president/senior director of NorthMarq Capital's Dallas regional office arranged the $96.3 million refinance of Ashford Belmar, a 512-unit multifamily property located at 7301 West Ohio Ave. The transaction was structured with a seven-year term with two-years of interest only on a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its seller/servicer relationship with Freddie Mac. Located near downtown Denver, the property benefits from its close proximity to Belmar Park, the Lakewood Cultural Center and the Belmar Shopping District—all made accessible by the available on-site bike rentals for residents.
BROOMFIELD, CO—ARA, A Newmark Company, represented the seller in the $65 million sale of Arista Uptown, a 272-unit multifamily community located in the 200-acre mixed-use development of Arista. Vice chairmen Shane Ozment, Terrance Hunt, Jeff Hawks and Doug Andrews represented the seller, Millburn & Company, a Salt Lake City-based privately held investment firm that owns approximately 4,000 units in the Western United States. Millburn & Company originally purchased the asset in 2014, just one year after the property was built. Denver-based Seagate Colorado Partners LLC purchased Arista Uptown, adding to its portfolio of nearly 3,000 units in Colorado and marking its 12th multifamily acquisition in the state since 2011.
RIO GRANDE CITY, TX—A Jack in the Box ground lease, a 2,522-square foot net-leased property, has sold, according to Donald D. Morrow, regional manager of Marcus & Millichap's Phoenix office. Jack in the Box ground lease is located at 4600 E US Highway 83 and sold for $725,000. Jamie Medress, Mark Ruble, Chris Lind and Henry Kerson, investment specialists in Marcus & Millichap's Phoenix office, had the exclusive listing to market the property on behalf of the seller, a partnership. Tim Speck, broker, assisted in closing this transaction.
HOUSTON—Waterman Steele Real Estate Advisors' Mike Easely, senior vice president, represented the lessee in the lease execution of 6,500 square feet at 4112 Old Spanish Trail for Houston-based Encore Theater. The lessor was self represented. Encore Theatre is a non-profit theatrical group founded in 1994 by prolific playwright and Professor Harold J. Haynes who believed that the Houston community needed a source to teach fledgling African American and Hispanic actors. Encore Theatre presents original plays, most written by Professor Haynes, as well as classical and contemporary works.
HOUSTON—NAI Partners represented Adkisson Development in leasing 12,000 square feet of industrial office/warehouse spec building on 0.92 acres of land located 5808 Hamblen Rd.–Logistics Park at World Houston. John Ferruzzo, SIOR and Nick Peterson represented the landlord, Adkisson Development, in the lease negotiations while John Ginder, Caldwell Companies represented the tenant, Winchester Source Technology LLC. There are two remaining building for sale or lease in the park.
HOUSTON—CJG Engineers Inc. signed a 5,115-square-foot office renewal at 3200 Wilcrest Dr. JLL's Ed Prejean represented the tenant in the transaction. Moody Rambin's Kurt Kistler represented the landlord, Westchase III Properties LP.
HOUSTON—Gulfcoast ARD Inc. signed a new 21,299-square-foot industrial lease at Westpark Business Center, 8798 Westpark Dr. JLL's Anya Marmuscak and Richard Quarles represented the tenant in the transaction. Stream Realty's Jeremy Lumbreras and Blake Warren represented the landlord, SCG Greater Houston.
EL PASO, TX—Hunt Mortgage Group provided a $4.2 million Freddie Mac loan to refinance an affordable multifamily property. Mesa Place Townhomes is located at 5450 Suncrest Dr. and consists of 128 multifamily townhouse units. Proceeds from the loan will be used to refinance existing debt, buy out the borrower's existing limited partner and provide cash to fund future acquisitions by the sponsor. The borrower is LEDIC Realty Company LLC. The loan is a seven-year loan, with one year of interest-only payments and 30-year amortization schedule beginning in year two of the loan.
BUILDING BLOCKS
HOUSTON—According to JLL's latest report on United States construction activity, construction spending in 2016 has continued to hit cyclical highs, reaching $317 billion in the third quarter, a 1% growth increase year-over-year. While this may be the highest point this cycle, compared to past third quarter growth averages of 7 to 10% year-over-year, the small increase could indicate an impending slowdown. A robust construction pipeline, combined with rising building and materials costs and a shrinking labor pool, could explain the lackluster growth. Materials costs have reached a 2.2% growth rate year-over-year, a five year high, largely due to a high demand for lumber. Building costs as a whole have increased in the third quarter, which is a slow but steady rate of 2.6% growth year-over-year.
Consumers made $12.75 billion in online retail purchases during the five-day period from Thanksgiving Day to Cyber Monday, according to a study by Adobe. This represents a 14.7% increase from the same period last year. Black Friday registered the greatest growth in online sales, rising nearly a quarter (21.6%) above 2015's level. And, a record 40% of online sales on Thanksgiving Day occurred on mobile devices, according to Adobe. Of the $771 million spent via mobile, 67.5% occurred through smartphones and 32.5% on tablets.
This growth highlights the consumer trend towards online retail, but not necessarily away from brick-and-mortar shopping. The majority of these online purchases were made from established retailers with brick-and-mortar locations, according to ICSC. Many of the nation's largest physical retailers invested heavily in expanding e-commerce offers in 2016, which both facilitated holiday online spending growth and helped to capture more of it.
Despite online sales growth, many brick-and-mortar segments also reported traffic and sales gains, says a report by CBRE. Many retailers contend that e-commerce is helping raise in-store conversion rates. Among malls, ICSC reports that a higher proportion of US adults shopped in physical stores during the Thanksgiving and Black Friday period this year compared with last year (57% vs. 51%). Affirming the trend, several major mall operators reported year-over-year traffic and sales increases across portfolios. However, this growth is increasingly concentrated in prime assets such as super-regional malls, while many class-B and C centers face flat or declining traffic—a trend at work throughout the year. Among retailers, many brands found that conversion rates were actually higher than in previous years, as consumers increasingly leverage online channels to browse before purchasing in-store. This raises the proportion of in-store customers who actually spend and offsets flat or declining traffic trends.—Lisa Brown
BY THE NUMBERS
SHREVEPORT, LA—The average asking rental rate per square foot per year for office properties as of midyear was $13.01. This represents an increase of 1.5% compared to the prior three months, with an increase of 1.5% year-over-year. Countywide average rental rates are 1.3% higher at $12.93 per square foot per year for office properties currently for lease, according to LoopNet.
BENTONVILLE, AR—The average asking rental rate per square foot per year for retail commercial properties as of midyear was $17.58. This represents a decrease of 1.6% compared to the prior three months, with an increase of 2.1% year-over-year. Countywide average rental rates are 2.9% higher at $16.52 per square foot per year for retail properties currently for lease, according to LoopNet.
NEWS AND NOTABLES
HOUSTON—David Rodriguez has joined Waterman Steele Real Estate Advisors as a vice president. Rodriguez began his commercial real estate career in 2013 with Houston's KW Commercial. His primary focus is on retail land development, multifamily and owner-occupied real estate. Prior to commercial real estate, Rodriguez was a vice president commercial lender for NationsBank/
OKLAHOMA CITY—BRAVO! Group Services, one of the largest privately held facility support companies in the country, has added Susan Justice to its team as director of business development for the Midwest. Justice will work to expand the firm's client portfolio in Oklahoma and Arkansas, focusing her attention on Oklahoma City, Tulsa, Little Rock and Bentonville, AR.
DEAL TRACKER
LAKEWOOD, CO—Suzanne Jones, senior vice president/senior director of NorthMarq Capital's Dallas regional office arranged the $96.3 million refinance of Ashford Belmar, a 512-unit multifamily property located at 7301 West Ohio Ave. The transaction was structured with a seven-year term with two-years of interest only on a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its seller/servicer relationship with
BROOMFIELD, CO—ARA, A Newmark Company, represented the seller in the $65 million sale of Arista Uptown, a 272-unit multifamily community located in the 200-acre mixed-use development of Arista. Vice chairmen Shane Ozment, Terrance Hunt, Jeff Hawks and Doug Andrews represented the seller, Millburn & Company, a Salt Lake City-based privately held investment firm that owns approximately 4,000 units in the Western United States. Millburn & Company originally purchased the asset in 2014, just one year after the property was built. Denver-based Seagate Colorado Partners LLC purchased Arista Uptown, adding to its portfolio of nearly 3,000 units in Colorado and marking its 12th multifamily acquisition in the state since 2011.
RIO GRANDE CITY, TX—A
HOUSTON—Waterman Steele Real Estate Advisors' Mike Easely, senior vice president, represented the lessee in the lease execution of 6,500 square feet at 4112 Old Spanish Trail for Houston-based Encore Theater. The lessor was self represented. Encore Theatre is a non-profit theatrical group founded in 1994 by prolific playwright and Professor Harold J. Haynes who believed that the Houston community needed a source to teach fledgling African American and Hispanic actors. Encore Theatre presents original plays, most written by Professor Haynes, as well as classical and contemporary works.
HOUSTON—NAI Partners represented Adkisson Development in leasing 12,000 square feet of industrial office/warehouse spec building on 0.92 acres of land located 5808 Hamblen Rd.–Logistics Park at World Houston. John Ferruzzo, SIOR and Nick Peterson represented the landlord, Adkisson Development, in the lease negotiations while John Ginder, Caldwell Companies represented the tenant, Winchester Source Technology LLC. There are two remaining building for sale or lease in the park.
HOUSTON—CJG Engineers Inc. signed a 5,115-square-foot office renewal at 3200 Wilcrest Dr. JLL's Ed Prejean represented the tenant in the transaction. Moody Rambin's Kurt Kistler represented the landlord, Westchase III Properties LP.
HOUSTON—Gulfcoast ARD Inc. signed a new 21,299-square-foot industrial lease at Westpark Business Center, 8798 Westpark Dr. JLL's Anya Marmuscak and Richard Quarles represented the tenant in the transaction. Stream Realty's Jeremy Lumbreras and Blake Warren represented the landlord, SCG Greater Houston.
EL PASO, TX—Hunt Mortgage Group provided a $4.2 million
BUILDING BLOCKS
HOUSTON—According to JLL's latest report on United States construction activity, construction spending in 2016 has continued to hit cyclical highs, reaching $317 billion in the third quarter, a 1% growth increase year-over-year. While this may be the highest point this cycle, compared to past third quarter growth averages of 7 to 10% year-over-year, the small increase could indicate an impending slowdown. A robust construction pipeline, combined with rising building and materials costs and a shrinking labor pool, could explain the lackluster growth. Materials costs have reached a 2.2% growth rate year-over-year, a five year high, largely due to a high demand for lumber. Building costs as a whole have increased in the third quarter, which is a slow but steady rate of 2.6% growth year-over-year.
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