JPI broke ground on a $103.2 million, 415-unit multifamily development in Denton, Texas. 

Located at 3855 Hudsonwood Road, Jefferson Quail Creek marks the company’s fifth construction close in Texas and third workforce community this calendar year. The community also marks the company’s second partnership with the Denton Housing Authority in 2025. JPI recently broke ground on Jefferson Bonnie Brae, a 461-unit workforce housing community located at N Bonnie Brae St & Bronco Wy, Denton, TX. Together, these two apartment communities will deliver 876 multifamily units to the region, expanding housing options for all income levels.

With first units expected in Q2 2027, Jefferson Quail Creek’s three-story, walk-up-style community will comprise 1-bedroom, 2-bedroom and 3-bedroom apartments. Amenities will include a resort-style pool, a courtyard with grills, a beer garden with an outdoor kitchen and seating, a main club room with a café, a resident lounge with TVs and gaming stations, an indoor-outdoor fitness center and yoga studio, open green space, and an enclosed dog park. An indoor mail and package room, tuck-under garages and EV charging stations will also be available on the property.

The fundamentals are strong. That’s the takeaway from Marcus & Millichap’s latest commercial real estate research briefs.

In its third-quarter fundamentals report, Marcus & Millichap said that the CRE market’s fundamentals are holding firm. That’s good news.

But that doesn’t mean that commercial real estate professionals won’t face challenges throughout the rest of 2025 and in 2026.

In its latest report, Marcus & Millichap analyzed the state of the commercial real estate sector’s main asset types. The findings? These sectors might not be booming, but they are, mostly, holding steady even during national economic challenges.

Balance is returning to the multifamily market, according to Marcus & Millichap’s report. Demand growth in this sector is moderating, but so is new supply. That could lead to a more stable multifamily market across the United States, Marcus & Millichap reported.

According to Marcus & Millichap, while the national multifamily vacancy rate is still down 100 basis points on a year-over-year basis, this number did increase to 4.6% in the third quarter of this year.

Certain markets have also seen so much new apartment development that they are now experiencing higher vacancy rates. Marcus & Millichap pointed to markets such as Austin, Dallas-Fort Worth and Nashville. On the other side of the equation, markets with limited development, including Chicago, Cincinnati, Cleveland, Detroit and Minneapolis-St. Paul, have seen rent growth higher than 5%, Marcus & Millichap reported.

In a bit of good news, Marcus & Millichap reported that the U.S. office sector continued to post a positive performance in the third quarter, which might signal a modest recovery in some metropolitan areas.

According to Marcus & Millichap, nearly 38 million square feet of office space was absorbed across the United States in the third quarter. That marks the sixth consecutive quarter of positive net absorption in this sector.

This helped drop the national office vacancy rate down 30 basis points to 16.4% in September, Marcus & Millichap reported.

The office vacancy rate fell a strong 170 basis points in Milwaukee, making this Wisconsin city one of the stronger performers in this sector during the third quarter. Marcus & Millichap reported, too, that Cleveland and Indianapolis ranked among the least-vacant office metropolitan areas in the third quarter.

And in the industrial sector? Marcus & Millichap reported that years of heavy industrial supply continue to influence this sector’s performance.

According to Marcus & Millichap, nearly 20 million square feet of industrial space was absorbed from July to September following a second quarter that saw negative net absorption in this sector. Even with the absorption in the third quarter, though, increased construction activity pushed the vacancy rate in the U.S. industrial sector to a 12-year high of 7.8%.

Construction activity is the reason behind this higher vacancy rate. Marcus & Millichap reported that about 3.5 billion square feet of industrial space has been completed during the past 10 years in the United States. That space is still being absorbed.

The retail sector is holding steady, according to Marcus & Millichap. Net absorption in this sector was positive in the third quarter, but its vacancy rate edged up to a below-average 4.9%.

Retail vacancy rates, though, were below 3.5% in Indianapolis and Minneapolis-St. Paul. Marcus & Millichap reported that well-located retail space, especially space in centers with a higher concentration of necessity retailers, remains in demand by investors.

Transwestern announced the start of construction on the next phase of The RO (pronounced ‘row’). An inspired extension of the River Oaks neighborhood, The RO is a large-scale, once-in-a-generation project for the city of Houston.

This visionary mixed-use development on 17 acres at the intersection of West Alabama and Buffalo Speedway features The Birdsall, Auberge Collection, Houston’s first Auberge-branded hotel and residences; 80,000 square feet of chef-driven restaurants and boutique retail; The Clayton, a luxury multifamily community; and premier office space. The RO’s initial deliveries include a 145,000-square-foot Class AA office building that is nearing completion and scheduled for tenant occupancy in June 2026, with The Birdsall, Retail Village and The Clayton delivering in late 2027.

The Birdsall, Auberge Collection will include 44 private residences situated above a 105-room boutique, luxury hotel. The 34-story tower designed by Kohn Pederson Fox (KPF) includes architectural references to River Oaks, incorporating materials such as reclaimed Cedar Bayou brick, characteristic of the storied neighborhood’s original homes. The hotel’s interiors are designed by internationally acclaimed Roman and Williams, and the residences by one of River Oaks’ most respected architects, Dillon Kyle. Auberge Collection, the award-winning brand and operator of one-of-a-kind luxury hotels, residences, resorts and private clubs, has collaborated with Transwestern’s development and hospitality teams on the planning, design and placemaking of The Birdsall and will manage and operate the completed hotel and residences.

Each Birdsall residence features the privacy and sense of space of a gracious River Oaks estate while emphasizing proportion, natural light and material details you would expect to find in a custom home. Residential-only amenities include a covered, open-air swimming pool, outdoor entertainment deck, summer kitchen, game room, and areas dedicated to wellness and fitness. This is coupled with privileged access to the private members’ club, a destination Auberge restaurant, event spaces, a resort-style wellbeing destination, pool, fitness facilities, and dining and social spaces including a European-style café and private garden. Exclusive sales for The Birdsall Residences are being managed by Compass Development Marketing Group in collaboration with Laura Sweeney of Compass and William Wheless of Wheless Realty. 

Retail Village, designed by Michael Hsu Office of Architecture, represents a series of small buildings set within lush landscaping that includes a handful of heritage oak trees original to the site. Brick facades and pavers as well as a paseo will capture the aesthetic of River Oaks, which will be reinforced through restaurants and boutiques that balance sophistication with approachability.

The Clayton is a 317-unit luxury residential tower situated at the corner of West Alabama and Buffalo Speedway. It will integrate seamlessly into The RO through thoughtful architecture that includes masonry façades, gracious window lines and timeless interiors. The Clayton was designed by Pickard Chilton, renowned for iconic buildings around the world, and will be another example of its distinguished work. The RO’s initial office building, which is fully leased, was also designed by Pickard Chilton.

The Birdsall, Auberge Collection has been capitalized by Transwestern and private investor partners with a construction loan from Madison Realty Capital. Retail Village has been capitalized by Transwestern and private investor partners with a construction loan from Citizens and Amegy Bank. The Clayton has been capitalized by Transwestern in partnership with Nomura Real Estate Asset Management with a construction loan from Citizens, Amegy Bank and Texas Capital.

Baker Katz acquired Lakewood Forest Shopping Center, a 108,016-square-foot retail property located at the intersection of Highway 249 and Louetta Road in Northwest Houston. 

Situated alongside Target on 11.26 acres, the center offers a highly visible location within one of Northwest Houston’s most active retail corridors. 

Baker Katz plans to build on the Lakewood Forest Shopping Center’s strong foundation through strategic updates and continued investment in attracting best-in class retailers that complement existing tenants.  

The purchase was spearheaded by the Baker Katz team of Jason Baker, Kenneth Katz, Ben Brown and Jack Moody. 

Retail sales are expected to grow 3.5% to 4% this holiday season, bringing the total expected spend in excess of $1.7 trillion, according to ICSC’s 2025 holiday shopping forecast.

ICSC also released the results of its annual Holiday Shopping Intentions Survey exploring consumer expectations for the season, finding that 243 million consumers (91%) plan to shop this year, an increase from last year.

“Despite economic concerns, our survey shows that consumers are committed to their holiday traditions and plan to shop,” said ICSC President and chief executive officer Tom McGee. “Our forecast reflects that resilience, but our data also signals a selective shopper, putting pressure on retailers to connect with shoppers in new ways and offer memorable shopping experiences that entice them to spend.”

Amid the uncertain economic environment, 65% of consumers agree that it’s more important than ever to celebrate holiday traditions. In line with this, many holiday shoppers are turning to activities and experiences. Respondents that plan to gift activities like tickets to movies and events increased by five percentage points to 21% year-over-year. One in three also plan to spend more on experiences this holiday season compared to last year.

The survey found that 92% of shoppers plan to spend in a physical store, led by younger generations. Omnichannel shopping continues to grow in popularity, with 52% of consumers indicating they plan to take advantage of buy-online, pick-up-in-store options. Discount department stores (63%) and traditional department stores (29%) remain the most popular types of retailers consumers plan to visit. In a sign of opportunity for emerging retailers, 80% of consumers are open to visiting new stores or trying new brands.

Gift cards continue to be the most popular item this holiday season, with 64% of respondents planning to buy them, up six percentage points since 2024. Sixty-three percent of holiday shoppers agree that giving gift cards enables them to stick to a budget and avoid higher prices on individual items. Apparel (55%), toys and games (54%), and food and beverages (43%) rounded out the top categories.

Tariffs are a significant factor shaping consumer attitudes this season – and consumers indicated that they will also impact where they plan to shop. Seventy-one percent of respondents plan to be more selective when making holiday-related purchases due to perceived price increases from tariffs; further, 63% would avoid buying from retailers that raise prices significantly.  

Shoppers plan to use many different tactics to find lower prices. Sixty-four percent plan to spend more time looking for deals this year, and 67% believe the search for discounts or exclusive offers will encourage them to take more trips to stores. Thirty-two percent plan to use AI tools to help them with their holiday shopping and gift ideas, an increase over 25% in 2024.

“It’s clear from our research that economic factors aren’t just shaping consumer sentiment – they’re directly impacting where and how consumers shop,” said McGee. “Convenience, competitive pricing, and attentive service are table stakes in this environment. Retailers that truly listen to consumer signals have ample opportunity to capture consumer dollars this season.”