LA Cities in Crisis: How Budget Cuts Put Retail Real Estate Risk Front and Center

Single-Tenant Retail Rebounds As Private Buyers Dominate The STNL retail market is rebounding as private investors take center stage amid easing inflation and improved pricing alignment, reports GlobeSt. According to Marcus & Millichap’s latest report, private buyers drove a 15% increase in their market share over the past 12 months. During the same period, institutional, REIT, and entity-level activity declined. Through Q3 2025, private capital made up 71% of dollar volume, followed by foreign buyers (10%) and REITs (9%)...

By Marc Perlof | MarcRetailGuy December 22, 2025 If you own retail real estate, here is what just changed for you. The combination of Hanukkah and Christmas produces the most potent retail period of the whole year. At this moment, tenant performance becomes unmistakably evident. The latest data indicates that U.S. consumers intend to raise their spending in December by 2.5 percent, despite the tightening of household budgets.¹ Concurrently, holiday traffic is changing. According to NIQ, retailers focused on value are experiencing a 12 percent increase in foot traffic compared to the previous year, whereas premium brands are seeing their traffic stabilize.² Customers still wish to shop, but they are opting for less expensive options. This is important for property owners. A tenant's performance in December is often indicative of how they will perform in the first half of the following year. When spending slows down in January and February, retailers who fail to capture holiday dollars will find it difficult. The performance in December offers landlords a 30 to 60-day advantage for renewals, rent adjustments, and replacement planning before less effective operators experience the pressure. This month, online shopping is anticipated to increase by another 6 percent, with a significant rise in curbside pickup.³ This season, retailers focusing on value and necessity are surpassing discretionary categories in traffic and conversion rates by high single digits. Centers that cater to hybrid shopping behaviors will surpass those that do not. Owners should keep an eye on three aspects. Initially, examine the speed of tenant sales, if available. Secondly, examine the conversion of traffic. Third, verify if tenants made early enough adjustments to their inventory to remain competitive. When a tenant is losing momentum during the crucial retail period of the year, it is essential to consider repositioning or renewal adjustments immediately rather than waiting until after the holidays. Call or DM me if you want to dig deeper. I can walk you through how this holiday period can guide your leasing, renewals, and pricing strategy for 2026. Are your tenants winning the moments that matter most? #retailrealestate #holidayretail #CRE #retailinvestment #centerperformance