Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • April 18, 2025
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An aerial view of the unintended consequences of measure ula

The Unintended Consequences of Measure ULA


We present evidence suggesting that Measure ULA has reduced higher-end real estate transactions in Los Angeles. Since Measure ULA was enacted, the odds of a Los Angeles property selling at a price above its tax threshold have fallen by as much as 50%. In raw terms, this sharp decline occurred across all types of properties, but our strongest evidence suggests it was particularly pronounced for non-single family transactions, which fell by 30-50%.

A man and woman are shaking hands with a car dealer in a car showroom.

Total retail sales rise 1.4% in March as consumers rush to beat tariffs


Consumer spending was stronger than expected in March, fueled by surging auto-related sales as consumers looked to get ahead of potential tariff-related price increases. 

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

Michaels looks to fill void left by Party City; expands balloons, party supplies


In the wake of the demise of Party City, Michaels is positioning itself as a one-stop destination for all things parties related.

Three people are sitting on a stage at a shoptalk event

How retailers are connecting with younger shoppers


From Sephora embracing its status as a Gen Alpha “playground” to Coach’s Gen Z-focused store concept, retailers are leaning in.

The front of a rite aid store with a sign on it.

Rite Aid reportedly considering filing for bankruptcy — again


Rite Aid is reportedly looking at its options.

The retail pharmacy chain is considering filing for bankruptcy for the second time in less than two years or selling some (or all) of its operations after its recent financial restructuring failed to put the company on “a sustainable path,” reported the Wall Street Journal.

A variety of fruits and vegetables are displayed in a grocery store.

The 2025 SN Power List: meet the emerging power players in U.S. grocery


The $870 billion U.S. grocery industry is evolving faster than ever, driven by shifting consumer habits, technological advancements, and fierce competition. In our inaugural Power List, Supermarket News highlights the players, concepts, and tech shaping the future of food retail. 

A blue building with the word ikea on it.

Ikea expanding in Texas with three smaller-format locations


Ikea is targeting the Lone Star State for expansion.

The Swedish home furnishings giant is building a smaller-format, or “city store,” at The Shops at Park Lane, in midtown Dallas. In addition to the Dallas location, Ikea has two other smaller-format stores in the works in Texas, including a 35,000-sq.-ft. outpost that will open this spring at San Mar Plaza in San Marcos, and one in Rockwell, which is scheduled to open in December. 

A big lots store with a blue sky in the background

Prada agrees to buy rival fashion house Versace in a deal valued at $1.4 billion


ROME (AP) — The Prada Group announced a deal Thursday to buy crosstown Milan fashion rival Versace from the U.S. luxury group Capri Holdings under terms that values one of the most recognizable names in Italian fashion at 1.25 billion euros ($1.4 billion).

An empty store with a parking lot in front of it

Sam’s Club Ramps Up US Expansion With 15 New Stores a Year

IAmid economic uncertainty, Sam’s Club is betting big on value—expanding its store count and upgrading its entire US footprint.

A lot of cars are parked in front of a building

Low Retail Availability Could Cushion Tariff Impacts on Real Estate


Near-record low availability could help retail absorb tariff pressures, with apparel most exposed to import duties.

A gas station with a red and white sign that says meter time

Wawa, Kwik Trip plan expansions as convenience stores race to bulk up


Wawa eyes western Virginia for expansion, Kwik Trip aims for North Dakota

An aerial view of a shopping mall filled with people

Retail Resilience: Five Years After the Pandemic Disruption


Five years after COVID lockdowns upended retail, brick-and-mortar has not only rebounded but regained its central role.

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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