Weekly Retail Real Estate News

Marc Perlof • February 2, 2024
A computer generated image of a building with cars driving underneath it.

Inglewood transit connector project delayed until 2030

 

Another automated people mover project in Los Angeles has run into its fair share of roadblocks. The $2 billion Inglewood Transit Connector Project, which would connect the Metro K Line to Inglewood and provide easier access to venues like SoFi Stadium, Kia Forum and Intuit Dome, has also ran into several delays in its preliminary stages.


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A man in a suit and tie is giving a speech in front of an american flag.

The Fed Declares Interest Rates Have Reached Their Peak

 

Federal Reserve Chairman Jerome Powell declared the end of the current monetary tightening cycle on Wednesday as policymakers decided to hold interest rates steady. "The policy rate is at its peak in this tightening cycle," Powell told reporters after the Fed's policy-making committee's first meeting of the year. 


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A woman is standing in the middle of a clothing store.

Walmart to add more than 150 larger-format stores during next five years


Walmart is moving back into brick-and-mortar expansion.The retail giant said it plans to build or convert more than 150 larger-format stores during the next five years while also continuing its program to remodel existing locations. During the next 12 months, Walmart expects to remodel 650 stores across 47 states and Puerto Rico. 

 

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A man in a suit and tie is standing at a podium giving a speech.

USPS installs EV charging stations, plans 66,000 EVs by 2028

 

The U.S. Postal Service (USPS) is moving forward with plans to deploy one of the nation's largest electric vehicle (EV) fleets. As part of a 106,000-vehicle acquisition plan for deliveries it launched in 2022 (which is included in a larger $40 billion investment strategy to upgrade and improve processing, transportation, and delivery networks), USPS has implemented  its first set of EV charging stations at its South Atlanta sorting and delivery center (S&DC).

 

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A variety of smoothies and desserts are sitting on a colorful table.

South Block and Savory Fund Ink Deal to Bring Açai to the Masses


He first learned about the company when a friend and mentor shared an article with him. The private equity firm built its reputation on investing in emerging quick-service chains, even through COVID. As the founder and leader of South Block, a rising fast casual in the DMV area known for its selection of made-to-order smoothies, açai bowls, toasts, and cold-pressed juices, Mostafavi seemed to fit what Savory typically looks for.


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A woman is eating a bowl of food with a spoon.

QDOBA Will No Longer be an ‘Afterthought’ on the National Stage


At 750 restaurants in 45 states, Canada, and Puerto Rico, QDOBA is the No. 2 player in the Mexican fast-casual space. What’s more impressive, according to CEO John Cywinski, is that the brand reached this height while dealing with lackluster ownership. 


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Target’s ‘winning retail format’ includes large — and small — store expansions


Target Corp. is pulling back the curtain on its 2023 new store openings and remodels for a glimpse of what’s to come as the retailer set an ambitious pace moving into 2024.“From more stores to more deliveries, we’ve set an ambitious pace moving into 2024," the company said in a blog post, in which it offered up details about its “winning retail formula.”

 

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An aerial view of a jack in the box restaurant.

Jack in the Box Believes it’s a Challenger, but that’s Changing Soon


With Jack in the Box being the fifth-biggest quick-service burger chain in the U.S. and Del Taco positioned as the second-largest Mexican brand in the space, CEO Darin Harris honestly can’t think of any other chains that have that type of scale and proof of concept, yet still maintain “such tremendous whitespace across the United States for growth.” 


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A white truck is parked in front of the dartmouth mall.

Retailers are finding more of what they want off mall


After decades together, some retailers are redefining their relationships with malls. Stores like Macy's, Dillard's, Belk and J.C Penny have long been seen as pillars of stability for America's indoor shopping malls. But in recent years, those retailers have increasingly been looking and moving-off-malll. The pandemic accelerated

the trend. 


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The front of an aldi store with a blue sky in the background.

Aldi acquisition of Southeastern Grocers moves forward with divestiture of Fresco y Más


Southeastern Grocers Inc. has completed its divestiture of Fresco y Más to Fresco Retail Group, LLC, the company announced Thursday. Southeastern continues ownership and operation of Harveys Supermarket and Winn-Dixie grocery stores. 


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Two women are walking in front of a gas station.

Love’s Travel Stops details 2024 store opening, remodeling plans


Love’s Travel Stops is celebrating its 60th anniversary by continuing to expand its footprint and service offerings. The travel stop and convenience-store retailer plans to add 20 to 25 new locations and update 35 to 40 aging stores and in 2024. It also will completely rebuild four stores in 2024. 


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By Marc Perlof February 2, 2026
Retail Real Estate 2026: Why Some Properties Stay Strong While Others Struggle By Marc Perlof | MarcRetailGuy February 2, 2026 If you own retail real estate, here is what just changed. Retail real estate in 2026 is no longer one market. It has split into clear winners and clear losers. Owners who understand this are protecting value. Owners who do not are feeling pressure. The biggest change is how people spend money when things feel uncertain. Interest rates are higher. Costs are up. Households are more careful. That shift shows up first at the property level. Some retail feels stress faster than others. Lifestyle centers, nightlife areas, entertainment districts, and tourist retail depend on optional spending. When people cut back, visits drop. Sales slow. Tenants push back on rent. Vacancies last longer. This is not a crash. It is a pressure issue tied to spending people can delay. Other retail performs differently. Grocery anchored centers, pharmacies, medical and dental, quick-service food, auto service, and personal care are built around daily habits. People cut wants before needs. That makes income steadier and easier to support in a cautious market. Recent retail market reports show this split clearly. National retail vacancy stayed fairly stable through late 2025, mostly in the mid-5 percent to high-6 percent range, with necessity-based centers performing better than discretionary locations¹. Leasing slowed in 2025, with longer decision times and more rent pushback, especially from non-essential tenants². Buyers are still active, but they are more careful. They now focus on tenant quality, lease length, and operating costs more than rent growth³. What retail owners should focus on right now • Daily-needs tenants reduce risk. Properties with grocery, medical, pharmacy, and quick-service food see more stable rent and fewer concession requests. That helps protect sale price and lender support in slower markets¹. • Grocery-anchored centers sell faster. Buyers still want these assets because traffic is predictable and costs are easier to pass through. These deals tend to fall apart less often³. • Discretionary retail carries pricing risk. Properties tied to optional spending face longer vacancies, rent resistance at renewal, and wider gaps between buyer and seller pricing. Waiting too long to adjust can hurt value, not just cash flow². One thing is becoming clear in early 2026. The market is not pricing retail as one category anymore. It is pricing risk. Two properties with the same income can be worth very different amounts based on tenant mix, lease terms, and rising expenses. Owners who understand this protect equity. Others only see the gap after a buyer or lender points it out. The takeaway is simple. Retail real estate in 2026 is about quality, not hype. Stable income matters. Lease terms matter. Tenant mix matters. Insurance and operating costs matter. Owners who match strategy to how their tenants actually perform stay in control. Owners who rely on old assumptions end up reacting. If you want a clear, property-specific review of how buyers and lenders would view your retail asset today, I can prepare a short market positioning summary. No templates. No guesses. Just how your property would really trade in this market. Ask yourself this. Is your property built around spending people can delay, or spending they rely on every week? #RetailRealEstate2026 #RetailMarketOutlook #EssentialServicesRetail #GroceryAnchoredRetailCenters #DiscretionaryRetailProperties
By Marc Perlof January 30, 2026
Smoothie King plots 90-plus new openings for 2026 The world’s largest smoothie franchise isn’t planning on slowing down its growth after a strong 2025.  Smoothie King says it plans to open more than 90 new store openings in 2026, in addition to launching a targeted franchisee incentive program spanning several key states, including Arizona, Illinois, Massachusetts, Michigan, Pennsylvania, Virginia and more. Through the program, Smoothie King says it is offering financial incentives to “growth-minded franchisees,” designed to accelerate brand awareness and density in these markets...
By Marc Perlof January 26, 2026
By Marc Perlof | MarcRetailGuy January 26, 2026 If you own retail real estate, here’s what just changed for you. 2026 is shaping up to be a year where retail property owners need to pay attention. Not to fear. Not to headlines. To real signals in the market. There is more global and domestic uncertainty right now. Conflicts overseas, trade tension, higher government debt, and political changes in the U.S. all affect interest rates, insurance markets, and investor behavior. This does not mean panic. It means owners need clear, reliable information. Here is where the retail market stands today. Local retail remained steady through late 2025. In Los Angeles County, vacancy ranged from about 5.6 to 6.9 percent in the second half of the year¹²³. That tells us demand is still healthy, even as some tenants adjust space needs or renew leases at new rent levels. Leasing activity slowed in some areas. Spaces are taking longer to fill, and asking rents softened slightly as owners and tenants reset pricing². This is a normal market adjustment, not a collapse. On the investment side, commercial real estate transactions increased nationally through mid 2025. Both the number of deals and total dollar volume rose, showing capital is still moving⁵. Buyers are active when pricing reflects today’s risks and returns. This is exactly what I am seeing in live pricing discussions and negotiations right now. Insurance remains one of the biggest issues for retail owners. Property insurance markets became more stable in 2025, and rate increases slowed in some areas. However, insurers are still selective. Coverage terms matter more than ever, especially for properties exposed to wildfire or coastal risk⁴. Insurance costs directly affect net income, lease negotiations, and buyer interest. Retail Outlook for Q1 and Q2 2026 In early 2026, the retail market is likely to stay steady but measured. Vacancy is expected to remain near current levels. Leasing will be deliberate, not rushed. Rents should hold close to where they ended in 2025 as owners and tenants continue to agree on realistic pricing. Capital will remain active for properties with solid income, strong tenant credit, and durable lease terms. Buyers are selective, but they are still moving forward when risk and return are properly aligned. Insurance markets will stay selective in the first half of 2026. Owners need to plan renewals carefully and understand how insurance affects operating costs, tenant negotiations, and future sale value. Here is a simple retail risk check for 2026: • Local vacancy around 6 percent, stable but uneven by location¹ • Leasing takes longer than peak years, making pricing discipline critical² • Capital remains active, but underwriting is conservative⁵ • Insurance coverage is improving in some areas, but terms still matter⁴ Not all retail performs the same. Discretionary-driven destinations like lifestyle centers, nightlife districts, and tourist-focused shopping streets feel more pressure when consumer spending slows. Retail that serves daily needs and essential services tends to perform better during uncertain cycles. The best strategy now is disciplined and data-driven. Focus on tenant credit strength. Protect lease term and income stability. Price based on real market data. Understand insurance risk clearly. This is how value is protected in changing markets. I help retail property owners position assets based on real tenant behavior and real buyer demand. Not headlines. Call or DM me if you want a clear view of how your retail property should be positioned for 2026. How will you adjust your leasing or investment strategy this year based on what the market is actually telling us? #RetailRealEstate #LosAngelesCRE #CommercialRealEstateOutlook #RetailInvestment #CRE2026 #MarcRetailGuy
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