Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • April 11, 2025
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A large store with a lot of blue signs and a black barrier.

Sam’s Club in big store remodeling and expansion move


Sam’s Club is ramping up its expansion along with its investments in existing stores.

A pollo loco restaurant with a famous fire grilled chicken menu.

Activist Investor Sardar Biglari Wants to Buy El Pollo Loco


Steak ‘n Shake owner Sardar Biglari wants to buy El Pollo Loco.

The activist investor, who already owns 15.1 percent of El Pollo Loco through his investment firm Biglari Capital Corp., sent an unsolicited, non-binding indication of interest to buy the rest of the shares it doesn’t already own. If successful, the deal would give Biglari full control of El Pollo Loco and likely result in the company going private.

A group of people are standing outside of a barnes & noble store.

Santa Monica Council OKs measures to boost downtown business


The Santa Monica City Council unanimously approved zoning amendments at their last meeting aimed at revitalizing the city's downtown business district by easing restrictions on community spaces and standardizing digital signage rules.

A woman is standing next to a picture of a building under construction.

L.A.’s ‘Mansion Tax’ Causes Steep Drop in Commercial Sales: UCLA


Los Angeles’ controversial “mansion tax” has generated far less revenue than predicted largely because it’s also driving a serious decline in sales volume across the city, according to a new study by the University of California Los Angeles.

A group of people are walking down a sidewalk in front of a building that says tonal on it.

New managers for Santa Monica Place, Prism Places, hopes to shine a positive light on troubled property


Prism Places, a commercial real estate management firm with $2.8 billion in assets under management, has been appointed to manage the struggling Santa Monica Place shopping center, the company announced Thursday.

A map of the united states with a lot of coins on it

Walgreens shutters over a dozen stores in San Francisco Bay Area


March was another big month for dollar stores across the U.S., with Dollar General again leading the pack opening 60 new locations, according to the monthly Supermarket News store map.

A zara store is located on the corner of a city street.

Zara Bets Big on Union Square With New Flagship Store


Zara will shut its current Union Square location and open a new flagship at 400 Post St.—twice the size—reviving the area’s retail scene.

A big lots store with a blue sky in the background

Big Lots Begins Reopening Spree With 9 Stores in 6 States


Variety Wholesalers is relaunching the first of 219 Big Lots stores this week, marking the start of a major retail comeback after the chain’s 2024 bankruptcy.

A stack of gold coins next to the word tariffs.

This Expert Thinks CRE Will Be a Safe Harbor Amid Tariff Turmoil


In the wake of the sweeping tariffs announced by the Trump Administration on April 2, commercial real estate may emerge as a safe harbor for investors navigating an increasingly volatile economic landscape. Manus Clancy, head of data strategy at LightBox, makes a compelling case for why CRE could outperform other asset classes during this period of uncertainty. His analysis, coupled with recent data from LightBox’s CRE Activity Index, paints a picture of resilience within the sector.

The logos for aldi and dollar general are next to each other.

Aldi, Dollar General shoppers spend more at store than Dollar Tree


Shoppers at Aldi and Dollar General spend twice as much as those who frequent Dollar Tree, according to the latest data from Numerator.

Even though consumers spend more at Dollar General and Aldi, 79% of U.S. shoppers shop at Dollar Tree, compared to 60% at Dollar General and 47% at Aldi, Numerator’s Retailer, Restaurant & Brand Snapshots report found. 

An aerial view of a best buy store with cars parked in front of it

New wave of tariffs expected to rock US retail


President Donald Trump accelerated a global trade war this week in a move that's expected to dramatically disrupt the U.S. retail industry, a major user of commercial real estate.

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • October 31, 2025
Fed Cuts Rates Again, Boosting Confidence in CRE Recovery In a closely watched decision, the Federal Reserve cut its benchmark interest rate for the second consecutive month. The new target range of 3.75% to 4% reflects continued efforts to ease financial conditions and stabilize capital markets, even as economic signals remain mixed...

Will LA’s $30 Minimum Wage Reshape Retail Real Estate or Just Empty Storefronts?

By Marc Perlof • October 27, 2025
If you own retail real estate, here’s what might change for you. The hospitality workers’ union UNITE HERE Local 11 is pushing a bold new initiative to raise the City of Los Angeles $30 minimum wage for all city employees by July 1, 2028¹. While the first ordinance covered hotel and airport workers, the union’s latest ballot measure would extend this wage citywide². As an expert in retail real estate, here’s what that means for your properties. Higher wages will immediately impact tenant affordability and rent-to-sales ratio calculations that drive lease viability. Many retailers operate with payroll costs at 25 to 35 percent of gross revenue, leaving little cushion for a wage that’s nearly double the current state minimum of $16/hour³. When margins tighten, tenants face a choice: raise prices, cut staff, or negotiate rent. For landlords, that translates into valuation pressure because commercial property values depend on stable rental income. The small business impact in Los Angeles could be profound. Independent restaurants, boutiques, and service operators, the lifeblood of local shopping centers, run on razor-thin profits. If forced to meet a $30 wage, some may relocate to cities like Burbank or Glendale, where municipal wage laws are lower, or close entirely⁴. That shift could spark short-term vacancy spikes and longer lease-up periods. Still, there’s a possible upside. When low-wage workers earn more, they spend more locally. For well-positioned centers with necessity-based tenants: grocers, pharmacies, quick-service restaurants, rising wages could strengthen revenue resilience. Key takeaways for retail landlords: Audit tenant financial health and exposure to rising payroll costs. Review lease clauses that address operating-cost pass-throughs. Model new rent-to-sales thresholds under a $30 wage scenario. Track tenant retention and market-rent shifts across nearby cities. Prepare for valuation adjustments as cap rates reflect greater income volatility. If you own retail real estate in the City of Los Angeles, now’s the time to stress-test your portfolio. Let’s review your leases before this wage shift hits. Call or DM me for more information. When the $30 wage arrives, will higher pay strengthen LA’s consumer base or hollow out the city’s small-business retail core? #LosAngeles30MinimumWage #RetailRealEstateInLosAngeles #TenantAffordabilityAndRentToSalesRatio #SmallBusinessImpactLosAngeles #CommercialPropertyValuesLosAngeles

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • October 24, 2025
Toys"R"Us opening 10 flagships, 20 seasonal shops — here are all the locations The brick and mortar comeback of Toys"R"Us is moving into high gear ahead of the toy industry’s busiest season. In September, the retailer said that, in partnership with Go! Retail Group, it was planning to open 10 flagships and 20 seasonal holiday shops in the U.S. by year's end...
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