Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • April 4, 2025
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An aerial view of a yellow excavator digging in the dirt.

Governor Newsom suspends permitting rules, expands FEMA cleanup, extends ROE Deadline to April 15


California Governor Gavin Newsom has signed several executive order aimed at accelerating the rebuilding of fire-ravaged communities in Los Angeles County. A new order, announced on Thursday, March 27, suspends permitting and environmental review requirements to fast-track infrastructure repairs and prevent future wildfires.

A sign for the santa monica civic auditorium

City Approves Redevelopment Deal for Civic Auditorium


Officials said the next phase of the process includes site analyses to assess redevelopment viability

The Santa Monica City Council has taken a step toward revitalizing the long-shuttered Civic Auditorium, approving an Exclusive Negotiating Agreement with Revitalization Partners Group on Tuesday.

A chick-fil-a restaurant with a parking lot in front of it.

Chick-fil-A’s Sales Surpassed $22 Billion in 2024


While Chick-fil-A’s year-over-year sales growth wasn’t as robust as recent years, percentage wise, it continued to push unrivaled volumes at scale. In 2024, of the roughly 2,179 domestic franchised restaurants not located in malls (freestanding or drive-thru-only units), opened and operated for at least year a calendar year, the median annual sales volume was $9.227 million and the average annual sales volume $9.317 million, according to the brand’s FDD, which was released Wednesday.

An aerial view of a city skyline with a bridge over a river at sunset.

Retail rent gains slow as store closings provide more leasing options


Landlords still see elevated rent increases for spaces that turn over, just not at previous record levels

A person is typing on a laptop computer with a graph on the screen.

NRF predicts 2025 retail sales growth of 2.7% to 3.7%


The National Retail Federation said conditions remain relatively positive for consumer spending in 2025, and predicted that retail sales—excluding auto dealerships, gas stations, and restaurants—would grow between 2.7% and 3.7% this year. That compares with 3.6% retail sales growth in 2024.

A white truck is parked in front of an advance auto parts store

Investors favor small-dollar deals as large properties face rising vacancies


U.S. commercial property prices were mixed in February, with the amounts in high-dollar deals falling as those in the low-dollar range rose.

Tenant occupancy drove the swings in value, according to the latest monthly CoStar Commercial Repeat-Sale Indices. It tracks when a previously sold property trades hands again in a process called a repeat sale.

A small wooden house is sitting next to a pile of coins on a table.

How Proposed Tax Changes Could Affect Commercial Real Estate


With key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) set to expire, commercial real estate professionals must stay informed about potential tax policy shifts. Proposed changes under a new administration could significantly impact tax liabilities, investment strategies, and property development costs. 

A red and white sign for a winn dixie store

Winn-Dixie to close four Alabama stores


Winn-Dixie said it is planning to close four locations in Alabama in the coming weeks, following its confirmation last week that it also plans to close one store in Georgia.

A winco foods sign is on the side of a building

WinCo Foods said to plan first Colorado stores


WinCo Foods is planning its first locations in Colorado, according to local reports.

The company, which operates large, no-frills, warehouse-style stores known for their competitive prices, bulk foods, and broad assortments, has acquired property for two locations, one each in the towns of Thornton and Firestone, the reports said.

A dutch bros restaurant with a blue building

Dutch Bros to open 1,000 new shops by 2029; expands long-term goal to 7,000


Dutch Bros is getting even more bullish on store expansion. It's also entering the consumer packaged goods market.

The front of a joann handmade happiness store.

Available retail space increases for first time in two years


The recent stretch of store closings has pushed retail space availability to a new two-year high.

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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