(December 8, 2025) — Black Friday 2025 delivered another historic milestone for U.S. retailers, with shoppers spending heavily online while traditional brick-and-mortar stores saw mixed performance. Early data shows consumers spent an estimated $11.8 billion online on Black Friday alone, according to Adobe Analytics—up 9.1% from 2024 and one of the strongest single-day e-commerce totals ever recorded.

Overall retail spending (online + in-store, excluding autos) grew 4.1% year-over-year, Mastercard SpendingPulse reported, signaling a solid but more measured consumer appetite compared to past holiday surges. Analysts say shoppers are becoming more selective, focusing on targeted purchases rather than broad impulse buying. While total spending is up, consumers are buying fewer items per transaction, but at higher price points—a trend attributed to ongoing inflation and product mix shifts.

E-commerce Dominates the Holiday Kickoff

Digital sales once again outperformed physical retail, continuing a trend that has accelerated sharply over the last decade. Online spending grew by 10.4%, fueled by price-sensitive consumers using comparison tools, mobile shopping, and AI-powered deal alerts. Cyber Week, now often called the “Cyber Five,” is expected to exceed $44 billion in online sales when tallied across Thanksgiving through Cyber Monday.

Retailers with strong digital platforms, fast-shipping options, and integrated loyalty programs were among the biggest winners. Electronics, toys, and apparel saw some of the deepest discounting, driving online conversion rates higher than the year prior.

In-Store Traffic Soft but Steady

Despite strong online performance, physical stores saw uneven results. Early foot-traffic data indicates a 3.6% decline in Black Friday store visits compared to last year. Analysts attribute the dip to several structural changes in consumer behavior:

• Many shoppers now spread purchases across November, reducing the urgency of in-person visits.

• Doorbuster events have been scaled back as retailers manage margin pressure.

• Consumers increasingly prefer hybrid models and buy online, pick up in store (BOPIS), which reduces traditional in-store browsing traffic.

Still, retailers with experiential environments, strong loyalty tie-ins, or unique in-store promotions reported steadier traffic.

Consumers Are Value-Focused but Still Spending

Despite persistent inflation, shoppers showed they are willing to spend, but strategically. Retail Dive reports that retailers are observing “transaction compression”: fewer items in the cart, but higher average selling prices. This suggests consumers are prioritizing big-ticket items or specific needs rather than stocking up on discretionary products.

Shoppers were also more likely to use buy-now-pay-later services, which generated over $1 billion in sales on Cyber Monday alone.

What It Means for Retailers and CRE

For commercial real estate owners and retail operators, the 2025 Black Friday results reinforce ongoing sector divergences:

• Strong digital performance benefits retailers with highly integrated omni-channel strategies and last-mile logistics capacity.

• Weaker foot traffic challenges older centers that lack experiential anchors or updated tenant mixes.

• High consumer selectivity suggests retailers will continue to focus on store productivity rather than footprint expansion.

• Power centers and grocery-anchored centers remain comparatively insulated due to necessity-based spending patterns.

Outlook Heading Into December

With the strongest online Black Friday ever recorded and a steady, if restrained, lift in total retail spending, analysts expect a moderate but healthy holiday season. Retailers may face tighter margins due to discounting and cost pressures, but demand signals remain positive.

Cyber Monday broke $14.25 billion in online spending, extending momentum and setting the stage for what could become the most digitally driven holiday season to date.

TUCSON, AZ (December 8, 2025) — The Arizona Corporation Commission has approved Tucson Electric Power’s special energy supply agreement (ESA) with Humphrey’s Peak Power LLC, an affiliate of Beale Infrastructure, paving the way for TEP to serve a Pima County Data Center being planned. The measure passed on a 4–1 vote, with Commissioner Rachel Walden dissenting.

“TEP has an obligation to serve all customers within its territory,” said Commissioner Lea Márquez Peterson. “While the County Board of Supervisors has voted to rezone and sell the land for this development, the Commission’s vote this week to ensure that residential ratepayers are protected from cost shifts is vitally important to the region… as a Commissioner and a Tucson resident, I believe it is in the best interest of the ratepayers to approve the Special Contract and the protections it provides.”

“Regrettably, I had to vote against this contract”, said Commissioner Rachel Walden. “I am fully supportive of the buildout of this industry in our state, and the potential it holds for Arizona. But TEP’s contract with the developer did not go far enough in providing ratepayer protections for existing customers. I want to see longer-term contracts that contain upfront requirements to offset infrastructure needs, and early exit consequences that will make TEP whole; not leave existing customers holding the bag.”

The 10-year agreement includes minimum monthly billing requirements, a gradual increase in load over 18 months to ensure safe and reliable service for all TEP customers, and provisions confirming that Humphrey’s Peak Power LLC will be financially responsible for all costs related to building new infrastructure serving only the proposed data center campus.  More than 100 comments were submitted to the docket, and more than three dozen members of the public spoke before the Commission during the Open Meeting.  The Commission asserts that its jurisdiction in this case is limited to the generation tie lines and transmission infrastructure, the rates charged to customers, and whether those rates are just and reasonable for all customers; the Commission’s vote is not affected by the type of project associated with the ESA.

The vote followed extensive public comment reflecting high community interest. Commissioner Rene Lopez addressed concerns by clarifying the Commission’s jurisdiction and reiterating that the ESA is structured to prevent cost shifts and protect TEP from undue financial risk. With Arizona preparing for significant load growth driven by data centers and other large users, Lopez underscored the importance of special contracts like this one in supporting grid reliability, safety, and affordability.

The Villas at 5850 on East 22nd Street, Tucson

TUCSON, AZ (December 5, 2025) — A 12-unit multifamily community along East 22nd Street has sold for $1,100,000 in a value-add investment transaction that reflects the continued strength of Tucson’s small-unit rental market. The property, known as Villas at 5850, includes six one-story duplex buildings constructed in 1954 and situated across four commercial-zoned parcels in the Craycroft Addition subdivision. The community features renovated one-bedroom, one-bathroom units with in-unit washer and dryer setups, private gated backyards, and a fully fenced lot. One unit was vacant at the time of sale.

The seller, Villas at 5850 LLC of Scottsdale, transferred the property to CT2 Properties LLC of Walnut Creek, California, in an investment sale recorded on November 7, 2025. With a price per unit of $91,666, the transaction underscores investor interest in stabilized, updated rental housing in established infill neighborhoods. The East Tucson submarket continues to attract out-of-state buyers seeking durable occupancy, steady rent performance, and properties well-positioned for long-term cash flow.

Joseph Bernard Investment Real Estate represented both sides of the transaction. Joe Chaplik acted for the seller, while Joe Boyle represented the buyer. For more information, Chaplik and Boyle can be reached at 480-305-5600.

Source: RED Comp #12194