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Thursday, December 02, 2021Shoppers Buy Early, Buy Often
Shoppers Buy Early, Buy OftenConsumers evidently started their holiday shopping early amid widespread reports of supply-chain disruptions that could leave shelves bare before Santa makes his appearance. Consumer spending surged by 1.3% in October, according to the latest Personal Income and Outlays report released by the Commerce Department. This was the largest month-over-month increase since March, when the nation was just emerging from winter shutdowns. Despite what appear to be happy shoppers,
Thursday, December 02, 2021Omicron Fears Overshadow Jobs Report, Walmart Uses Pop-Up Container Yards, Toys 'R' Us To Open Flags
By Richard Lawson CoStar NewsOmicron Concern Overshadows Jobs Report A strong jobs report that beat expectations Wednesday sent stocks higher for much of the morning. But the first reported case of the omicron coronavirus variant in the United States triggered a Wall Street tailspin that added to the previous day’s losses. Payroll company ADP reported that private payrolls expanded by 534,000 in November, less than the previous month’s 570,000. Wall Street had projected November’s to be lower at
Wednesday, December 01, 2021Shoppers Flocked Back to Stores Over Thanksgiving Weekend, Retail Group Says
By Linda Moss CoStar News U.S. brick-and-mortar stores regained some popularity during this year’s Thanksgiving holiday weekend, but overall there were fewer shoppers spending. The number of people who shopped in stores — from Thanksgiving Day to Black Friday through Cyber Monday — rose this year, with roughly 104.9 million consumers visiting brick-and-mortar locations, up from 92.3 million in 2020, according to an annual survey released Tuesday by the National Retail Federation and Prosper Insights &
Wednesday, December 01, 2021Stocks Tumble on Fed Chair Comments, Small Business Hiring Hits New High, Consumer Confidence Drops
By Richard Lawson CoStar NewsStocks Fall on Powell's Comments Stocks tumbled on Tuesday on the prospect that the Federal Reserve may scale back stimulus policies faster than planned as inflation persists for longer than anticipated. The major indices dropped nearly 2% after Fed Chairman Jerome Powell told a Senate committee the central bank was discussing the possibility of accelerating the tapering of bond buying that had been done to stimulate the economy. Powell said the bond-buying could end months
Tuesday, November 30, 2021Amazon To Face Union Battle, Holiday Blues for Office Use
By Richard Lawson CoStar NewsAmazon To Face Union Push Online retail giant Amazon will face another union push in Alabama as the company expands its real estate in the state. On Monday, the National Labor Relations Board’s regional director in Atlanta ordered a new election at the company’s fulfillment center in Bessemer, Alabama, near Birmingham that employs some 6,000 people after striking down results of the first election that Amazon won in April. Union leaders protested to the NLRB, which agreed
Tuesday, November 30, 2021Allstate Outlines $232 Million Deal To Sell Headquarters in Chicago Suburbs
By Ryan Ori CoStar NewsAllstate has a contract to sell its suburban Chicago headquarters for $232 million to an industrial developer, moving the sprawling property a step closer to a conversion from Fortune 500 corporate offices to a distribution center. The insurer outlined details of its plan to sell the campus in Northbrook, Illinois, to Reno, Nevada-based warehouse developer Dermody Properties. The securities filings and news release announcing the deal are the first time Allstate has commented on a
Monday, November 29, 2021Holiday Shopping Season Could Set Records With Forecasts of Pent-Up Demand
By Linda Moss and Andria Cheng CoStar News This year consumers started shopping earlier for the holidays, momentum that's expected to carry through the season, with retail brokers and analysts forecasting that spending could reach records. Despite concerns about supply-chain disruptions, holiday-shopping surveys are offering bullish outlooks for retailers for the rest of 2021, a year after foot traffic at stores was suppressed around Christmas and Hanukkah by the COVID-19 outbreak. The National Retail
Monday, November 29, 2021Black Friday Falls Short of 2019, New COVID-19 Variant Raises Concern, Movie Theaters Score Over Hol
By Richard Lawson CoStar NewsBlack Friday Falls Short of 2019 Black Friday, the biggest shopping day of the year, fell short of 2019 sales in terms of foot traffic in stores, according to firms tracking the data. Retail analytics company RetailNext reported on Sunday that traffic at brick-and-mortar stores was down 27% from 2019 levels. Average transaction value per shopper was 18% higher than 2019, which put overall sales at just 5% lower than two years ago. Sales were significantly higher than last
Wednesday, November 24, 2021Thanksgiving Travel Expected To Nearly Hit Pre-Pandemic Levels
Daily travelers passing through TSA checkpoints. By Marissa Luck and Rohit Diwadkar CoStar News After a huge drop in holiday travel last year, Americans are back at it this year, filling freeways and piling into airports at almost pre-pandemic levels. Travel organization AAA forecasts that 53.4 million Americans will travel this Thanksgiving weekend, a 13% jump from 2020 and within 5% of the numbers in 2019, before the pandemic.*Projected number of travelers “This Thanksgiving, travel will look a
Wednesday, November 24, 2021Doing More With Less: Average Retail Lease Size Continues To Decline
Retailers with smaller stores such as Starbucks have dominated leasing activity so far this year, expressing a clear preference for "tall" over "venti" when it comes to store sizes. (Getty Images) By Brandon Svec CoStar AnalyticsThe retail property sector is having a bit of a resurgence in 2021. Store openings are at their highest level in five years, and more retail space has been leased over the first three quarters of this year than in all of 2020. Also, the more than 205 million square feet of
Tuesday, November 23, 2021US Commercial Service News
Here is a list of terrific upcoming events to give you the information, tools, and resources you need to meet your top international expansion goals! Click on the event to get details below. Trade Winds Middle East and Africa2021 South America Virtual Market Updates and NetworkingCentral America Trade Mission and Business ConferenceVirtual Events & ResourcesCan I sell to that foreign buyer? Check this list.Contact UsTrade Winds Middle East and AfricaJoin us in Dubai, UAE for the largest U.S. government-led
Tuesday, November 23, 2021Rising Inflation
INSIGHTS ON DATA POINTS AND ECONOMIC POLICY Rising Inflation Helps Push Household Debt to Record Levels The latest inflation reading released last week was worse than expected. The consumer price index registered a 6.2% year-over-year increase, according to the Bureau of Labor Statistics. This is the fastest rate of price increases in more than 30 years, and an entirely new experience for millennials and those younger.So it did not come as a surprise to read the preliminary results of the University of
Monday, November 22, 2021Largest Weekly US Hotel Demand Gain
New York City weekday hotel occupancy reached 68%, the highest in the market since the week before the first lockdown and an indication that business travel is picking up. Pictured is the TWA Hotel lobby on the grounds of John F. Kennedy International Airport in New York, New York on Nov. 16, 2021. (Getty Images) By Isaac Collazo STR The strength of weekday bookings, which typically indicate business travel, propelled U.S. hotel demand to its largest weekly gain since early October, as revenue per
Monday, November 22, 2021Air Freighter Demand Rises, Another Spending Bill Passes, Ford and Rivian Split
Qatar Airways, already a Boeing customer, may buy the company's newest air freighter. (Boeing) By Richard Lawson, CoStar NewsAir Freighter Demand Rises Boeing could be filling its Washington state factory with orders for more of its new freight version of the 777 jetliner as demand for air freighters surges with the shipping ports clogging up and trucking having difficulty keeping up. German airline Lufthansa has been in discussions with Chicago-based Boeing to buy the company’s 777X, which would
Friday, November 19, 2021Pritzker Signs the Reimagining Electric Vehicles (REV) Act to Incentivize Electric Vehicle Manufactu
Pritzker Signs the Reimagining Electric Vehicles (REV) Act to Incentivize Electric Vehicle Manufacturers to Expand in Illinois Building on Illinois’ role as a leading state in the burgeoning electric vehicle (EV) manufacturing industry, this week Governor JB Pritzker signed the Reimagining Electric Vehicles (REV) in Illinois Act into law, aimed at incentivizing EV production across Illinois. The new incentives benefit the state’s entire EV ecosystem, by helping to build facilities, boost workforce training,
Friday, November 19, 2021CVS To Close 900 Stores Over the Next Three Years
CVS Health will be turning to three models for its brick-and-mortar locations, including its traditional pharmacy stores. (CVS Health) By Linda Moss CoStar News Pharmacy giant CVS Health, a chain that was allowed to remain open as an essential retail operation during the peak of the pandemic, has deemed 900 of them not so essential anymore. The Woonsocket, Rhode Island-based company said Thursday that following a strategic review it will be shutting about 300 retail sites a year in the next three
Thursday, November 18, 2021Target Sets Up Remodeled Stores, New Distribution Sites for Holiday Season
Target officials said they added permanent storage capacity in more than 200 high-volume stores. (Target) By Linda Moss CoStar News Target said it’s ready for the expected holiday shopping crush this year, in-store and online, with plans to complete remodeling 100 brick-and-mortar locations and open two sorting centers in the fourth quarter. It's also joining the industry trend by trying out small stores while adding sales counters for other retailers in its aisles. The Minneapolis-based chain,
Thursday, November 18, 2021Nation's Largest Home Improvement Retailers Nail Higher Sales With New Delivery Models
Home Depot and rival Lowe's reported increased sales in their most recent quarter even with supply chain challenges and higher inflation. (CoStar) By Richard Lawson CoStar News The nation’s largest home improvement chains are changing how they distribute big, bulky items from their warehouses, putting less in their stores and instead shipping directly to consumers to join other types of retailers in boosting their financial performance through changes in logistics and how they use their
Wednesday, November 17, 2021Walmart Says Stores Filled With Holiday Inventory Despite Supply-Chain Bottlenecks
By Linda Moss CoStar NewsWalmart said it’s entering the holiday season with plentiful inventory at its stores despite global supply-chain disruptions as the retailer’s relatively low prices lure more cost-conscious shoppers concerned about inflation. The Bentonville, Arkansas-based company raised its guidance for the year in its fiscal third-quarter earnings report Tuesday, telling Wall Street analysts it had particularly strong market-share gains in the portions of its stores that sell groceries. And
Tuesday, November 16, 2021Burger King Parent Buying Firehouse Subs, Office Use on the Rise, GDP Growth Forecasts Shrink Furthe
Burger King's parent company is buying franchise chain Firehouse Subs. (CoStar) By Richard Lawson CoStar News Burger King Parent Buying Firehouse Subs Burger King’s parent company is expanding its footprint in the sandwich sector with a deal to buy Firehouse Subs for $1 billion and promises to increase the brand’s locations. Toronto-based Restaurant Brands International said Monday it plans to close on purchasing the Jacksonville, Florida-based sandwich franchise in the coming months using a
Tuesday, November 16, 2021Capital Markets Heat Up as Appetite Grows for US Hotel Deals
By Bryan Wroten Hotel News Now, CoStarThe pace of the U.S. hotel industry recovery from the pandemic has created unique financial opportunities for hotel owners, including a substantial amount of pent-up capital and potential transactions. There’s not just a lot of capital out there, but perhaps the most equity capital that has ever existing in this industry, Rob Hays, president and CEO of Ashford Hospitality Trust, said during the “Capital Outlook” session of the NYU International Hospitality Industry
Monday, November 15, 2021Containers Spending Less Time on Ships in Positive Sign for Nation’s Busiest Ports
By Jack Witthaus and Rohit Diwadkar CoStar NewsContainers are spending less time on ships at the ports of Los Angeles and Long Beach in a positive sign for the busiest ports in America, which have been jammed because of a surge in demand during the pandemic. Cargo that has spent more than nine days on ships, referred to as dwell time in the shipping industry, fell roughly 20% in the first week of November, according to data from the ports of Los Angeles and Long Beach. The dwell time declines came after
Monday, November 15, 2021Department Store Foot Traffic Rises, Consumer Confidence Drops, Trump DC Hotel Deal, Quitting Jobs H
Bloomingdale's and Nordstrom, such as the ones in Westfield San Francisco Centre, saw foot traffic increase in October. (CoStar) By Richard Lawson CoStar NewsDepartment Store Foot Traffic Rises Major department stores could be seeing early signs of holiday cheer with foot traffic pushing higher than in 2019. Kohl’s, Macy’s, Nordstrom, Neiman Marcus, Bloomingdale’s and J.C. Penney saw foot traffic rebound in October after a two-month slide when the coronavirus delta variant surged, according to
Friday, November 12, 2021Industrial Vacancy? No Problem, Say Brokers Who Advise Against Rushing Into Leases
Earlier this year, Bridge Development said it was partnering with Link Logistics to build a 480,000-square-foot industrial campus in the Lehigh Valley in Pennsylvania. (Bridge Partners) By Linda Moss CoStar News U.S. industrial property is so in demand that real estate developers and brokers say it’s often best to leave a building vacant and hold out on signing a lease because rents are skyrocketing so much and so fast. “What’s fundamentally changed is actually now vacancy is not necessarily a
Friday, November 12, 2021Rivian’s Value Surges Past Ford, Consumer Prices Shoot Higher, Jobless Claims Drop Further
An electric pickup truck on Rivian's assembly line in Normal, Illinois. (Rivian Automotive) By Richard Lawson CoStar News Rivian’s Value Surges Past FordElectric vehicle company Rivian Automotive, on the hunt to build a second U.S. factory, officially began trading on the Nasdaq Composite on Wednesday and soared to a higher stock market value than either Ford Motor Co. or General Motors. Rivian priced its shares at $78 Tuesday evening, but they opened the day at $106.75, putting the company’s
Thursday, November 11, 2021The Jobs Report We’ve Been Waiting For
The Jobs Report We’ve Been Waiting For It's long been thought that employment would surge once enhanced unemployment benefits, handed out to cushion the pain of the pandemic, were allowed to expire. While many unemployed workers may not yet be ready to return to work, last week’s Employment Situation reportshowed robust hiring in October.Nonfarm employment grew by 531,000 jobs, while September figures, which could have captured the immediate effect of expiring benefits in all states, were upwardly revised
Wednesday, November 10, 2021Biden Unveils Port Plans, General Electric To Spin Off Companies, Panera Going Public
The Port of Savannah is getting help in relieving congestion under a new Biden administration plan. (Jeremy Polston/Georgia Ports Authority) By Richard Lawson CoStar News Biden Unveils Port PlansPresident Biden rolled out a plan to begin as quickly as possible to alleviate problems with supply chains bogged down by congested ports. The biggest piece of the plan calls for $4 billion in funding to go out in the next 60 days for the Army Corps of Engineers to repair outdated systems at coastal
Wednesday, November 10, 2021D.R. Horton, America's Largest Homebuilder, Plans Growth Spurt for Rental Business
Homebuilding giant D.R. Horton plans to invest more than $1 billion as it scales its rental business in fiscal 2022. (iStock) By Candace Carlisle CoStar News The nation's largest homebuilder, D.R. Horton, is setting aside $1 billion to invest in its multifamily and single-family home rental platform as that market surges across the United States. D.R. Horton is positioning its rental operations to be "a significant contributor" to its revenue, profits and returns in coming years, executives said in
Tuesday, November 09, 2021Allstate Headquarters Campus in Chicago Suburbs Eyed as Distribution Center Site
Allstate wants to sell its headquarters campus in Northbrook, Illinois. (CoStar) By Ryan Ori Insurance giant Allstate’s headquarters campus in Chicago’s suburbs could be headed for a new life as a sprawling distribution center in a high-profile deal that highlights the disruption the pandemic is having on commercial real estate. Industrial developer Dermody Properties is negotiating to buy the 186-acre campus in Northbrook, Illinois, for more than $200 million, according to people familiar with
Tuesday, November 09, 2021AMC Theatres Looks at Alternative Cash Generators, From Tokens to Sports, As Moviegoers Return
AMC Theatres reported its third-quarter net loss narrowed as revenue rose significantly from a year earlier. (Getty Images) By Lou Hirsh CoStar News James Bond and Marvel superheroes are bringing patrons back to AMC Theatres after its properties remained empty for much of the past year as the world’s largest cinema chain is looking for other ways to draw customers. The company added live music concerts, NFL games, UFC and pro boxing matches to its screened entertainment options in the third
Monday, November 08, 2021Residential Construction Spending Dips for Second Month
One Bright Spot: Retail Construction Ticks UpBy Rohit Diwadkar CoStar News According to a recent U.S. Census Bureau data release, total spending on residential construction in September fell 0.4% from a month earlier, dropping to a seasonally adjusted annual rate of $773.5 billion. That's the second month in a row the total has dipped. Still, on a year-over-year basis, spending by private develpers increased by 19.3%. That total has also increased 24.9% year to date compared to a year ago.Single-family
Monday, November 08, 2021Planet Fitness Bests Peloton, Infrastructure Bill Passes, Better Jobs Picture, AMC To Open Popcorn S
Planet Fitness locations such as this one in Buckeye, Arizona, helped the company ring up strong sales in its latest quarter. (CoStar) By Richard Lawson CoStar News Planet Fitness Bests PelotonGym franchise chain Planet Fitness muscled aside in-home fitness company Peloton on the most recent profit report and expects to finish this year with as many as 120 new openings. The fitness chain posted total revenue of $154.3 million for the quarter that ended Sept. 30, a 46.4% gain over the same time
Friday, November 05, 2021$15 Million Rebuild Capital Grant Helps Jumpstart Metra's Newest Station
$15 Million Rebuild Capital Grant Helps Jumpstart Metra's Newest Station On Monday, the Illinois Department of Commerce and Economic Opportunity's (DCEO) Acting Director, Sylvia Garcia, joined Metra, elected officials and members of the community to break ground on the new Peterson Ridge Station in Edgewater. Funded in part by a $15 million Rebuild Illinois capital grant - construction on the brand-new station will provide more
Friday, November 05, 2021U.S. Commercial Service
Here is a list of terrific upcoming events to give you the information, tools, and resources you need to meet your top international expansion goals! Click on the event to get details below. Building Resilience in Exporting: What has happened to the global supply chain?Trade Winds Middle East and AfricaVirtual Events & ResourcesNew Reports to Plan Your Global Business: RENEWABLE ENERGY FOCUSResources on How to Export and Find New MarketsContact UsBuilding Resilience in Exporting: What has happened to the
Thursday, November 04, 2021Slowing Economy
Slowing Economy Brings the Third Quarter to a CloseLabor shortages, supply-chain disruptions, severe weather conditions and a rise in COVID cases during the summer each weighed on economic output recently. The economy grew by 2.0% annualized in the third quarter of 2021, according to the advance estimate released by the Bureau of Economic Analysis last week — a pandemic-era low and sharply slower than economist expectations from earlier in the year. Among the major categories, the most
Thursday, November 04, 2021Conference Board Lowers GDP Forecast, Job Growth Increases, Services Sector Activity Hits Record
Wage increases at the lower end of the pay scale are pushing inflation as businesses raise pay to attract employees. (Getty Images) By Richard Lawson CoStar News Conference Board Lowers GDP ForecastAnother organization lowered its forecast for U.S. economic growth this year, citing the delta variant of the coronavirus that slowed the economy’s momentum. In its latest global economic forecast, The Conference Board, a 105-year-old business membership-driven research organization, projected that
Wednesday, November 03, 2021Small Business Hiring Rises, Zillow Quits Flipping Houses, Home Price Growth Hits Record
Small businesses hiring rose in October. (Getty Images) By Richard Lawson CoStar NewsSmall Business Hiring Rises Small business hiring rose for the fifth consecutive month in October to reach the highest level since 2017, according to a monthly payroll company. Kicking off a week when monthly jobs numbers start rolling in, Paychex reported that its index with data analytics firm IHS Markit passed 100 for the first time since June 2017. The index hit 100.45, just shy of where the index was in April
Wednesday, November 03, 2021Public Storage Goes on Buying Spree as At-Home Workers Use Self-Storage Units to Declutter
Public Storage has made more than $5 billion in self-storage property acquisitions during 2021. (CoStar) By Lou Hirsh CoStar News Public Storage, already among the nation’s largest owner-developers of self-storage units, is spending $2.3 billion to buy more than 100 facilities across 16 states as America's remote workforce declutters to add space while working at home. The Glendale, California-based company is capitalizing on shifts home office life that accelerated in the pandemic and it
