Fed Holds Rates: Unlock Your Retail Real Estate Goldmine Now!

Marc Perlof • March 25, 2024

Hey Retail Real Estate Rockstars! Let's analyze some significant news from Federal Reserve Chairman Jerome Powell this past week and consider its implications for the retail real estate market. Powell provided some updates on Wednesday, March 20, 2024, and they have us all listening closely. What's the deal, then, and why should you care? Let's get started.

 

  • Interest Rates Chill for Now: The Federal Reserve's top brass has opted against raising interest rates; the current range is 5.25%–5.5%. This is quite significant because it implies that borrowing money to purchase or renovate real estate won't become cheaper just yet.
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  • Growth is Good: Things may slow down a little, but growth in the economy is still anticipated. This is excellent news for the retailers in your properties since it signifies that consumers will continue to spend money. It's similar to receiving approval for your intentions to enlarge or upgrade your storefronts.
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  • Inflation is Tricky: Although prices have been rising (that's inflation for you), they are now beginning to decline. They're not quite where we want them to be yet, though. This means for you to monitor consumer spending power and potentially consider the types of businesses that benefit from consumers being cautious with their money.

  • Jobs, Jobs, Jobs: People have money to spend since unemployment is still low. Because it indicates consistent traffic and sales, this is wonderful news for your retail locations. It resembles a crowded street where people congregate to shop.

 

So, what's the game plan? With everything that's going on, it's all about being smart with your retail property moves. Whether you're looking to buy more, sell some off, or give your existing spots a makeover, knowing what's happening in the big picture can help you make the right calls.

 

If you're ready to level up your retail property game, I'm here to help you navigate these normalizing times. Whether it's fine-tuning your strategy, exploring new opportunities, or simply getting a second opinion on your next big move, I've got you covered. Call, Text, or DM for more details, and let's make your retail property dreams a reality together.

 

With all this news from the Federal Reserve, how are you going to navigate your retail real estate through the current uncharted territory ahead?

 

 

#RetailRealEstate #EconomicUpdate #MarcRetailGuy #PropertyGoals #RealEstatePros

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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