Retail Property Succession Planning: Will Your Family Inherit Income or Problems?

Marc Perlof • February 23, 2026

By Marc Perlof | MarcRetailGuy

February 23, 2026

If you own retail real estate, here’s what just changed for you.


What Happens to Your Property When You’re No Longer Running It?

Most mom-and-pop retail owners built their property over decades. You likely handled tenant calls yourself, negotiated leases personally, and made repair decisions without a committee. For many owners, the property is not just an investment. It is a major part of retirement income and family wealth.

But here is the question few owners answer clearly: What happens to the property when you are no longer the one making decisions?


Legacy Planning Just Shifted Again

For several years, owners were told the federal estate tax exemption would drop sharply in 2026 and that they needed to act quickly. That urgency has changed.

For estates of decedents who die in 2025, the federal estate and gift tax exemption is $13.99 million per person under IRS guidance¹. Under prior law in the Tax Cuts and Jobs Act of 2017, that higher exemption was scheduled to sunset after December 31, 2025 and revert to a lower level beginning January 1, 2026 if Congress took no action².


However, the One Big Beautiful Bill Law, enacted July 4, 2025, prevents that reversion and permanently resets the exemption beginning January 1, 2026³. Starting in 2026, the exemption is $15 million per person, or $30 million for a married couple with proper planning, and it will be indexed for inflation going forward³. The annual gift tax exclusion remains $19,000 per recipient for 2026⁴.

This means the expected tax drop is no longer the main threat.


But taxes are rarely what hurt families who inherit retail property.


What Actually Reduces Value

After more than 20 years in retail investment sales and nearly $750 million in closed transactions, I have seen what causes problems for heirs. It is usually operational risk, not tax exposure.


Common issues include leases expiring within a few years, major roof or parking lot repairs that were postponed, and no clear decision-maker in the family. Sometimes adult children inherit the property but do not want to manage tenants or deal with capital improvements. In many cases, the children do not even know who the estate attorney, real estate attorney, CPA, tax attorney, ADA specialist, or trusted vendors are. If the contact list for your handyman, plumber, roofer, and HVAC technician only lives in your phone, that is a real operational risk.


None of these issues show up in an estate tax calculation. All of them show up in the sale price.


Why Timing Matters

Interest rates remain much higher than they were during the 2010–2020 period, with the Federal Funds Rate at 3.5%-3.75% to date from the Federal Reserve reporting⁵. Higher borrowing costs reduce buyer purchasing power and can compress pricing when owners consider selling investment property before retirement.


At the same time, baby boomers continue to control a significant share of U.S. real estate wealth, and a large intergenerational wealth transfer is underway according to U.S. Census Bureau data⁶.


In simple terms, many retail properties will change hands over the next decade. The only question is whether those transitions are planned or forced.


What Strong Retail Property Succession Planning Looks Like

Retail property succession planning should focus on the asset itself. That means reviewing lease rollover schedules, evaluating tenant credit strength, budgeting realistically for capital repairs, and creating a clear family real estate transition strategy.


For some owners, commercial property inheritance planning makes sense because the next generation wants the asset and understands the responsibility. For others, selling investment property before retirement may protect wealth and reduce stress for the family.


The right answer depends on lease structure, property condition, and family goals.


If you own retail real estate and want a clear evaluation of your lease exposure, capital risk, and transition options, I can help you review it from a real-world retail perspective. Call or DM me for more information or comment “PLAN” if you want a succession checklist.


If your largest tenant gave notice tomorrow, would your family know exactly what to do?


#RetailRealEstate #CommercialRealEstate #CREBroker #InvestmentProperty #PropertyOwners #SuccessionPlanning #PropertyInheritance #FamilyWealth #NetLease #LosAngelesRealEstate

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • May 22, 2026
Retail Real Estate Leaders Brace for Inflation Risks Retail real estate professionals arrived at ICSC Las Vegas this week with leasing momentum still intact, but economic anxiety creeping into conversations across the industry’s biggest annual gathering. Executives interviewed by CoStar News said resilient consumer spending and active retailer demand continue to support the sector, even as inflation, fuel prices, and global instability cloud the outlook for the second half of 2026...

When to Sell a Retail Property Without an Asking Price

By Marc Perlof • May 18, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 May 18, 2026 If you own retail real estate, here’s what just changed for you. In some situations, removing the price can lead to stronger offers. This approach allows the market to determine value instead of limiting it upfront. When used correctly, it can create competition and improve your outcome. More retail properties are being marketed without a price. Brokers are using offer-driven strategies to let buyers compete based on their own assumptions. What is causing it? Differences in buyer expectations and uncertainty in valuation are driving this shift. In many cases, investors and developers value the same property differently, especially when there is upside or redevelopment potential. How does removing the price affect your value? Removing the price can eliminate the ceiling. Buyers are not anchored to a specific number, which can lead to stronger offers when demand is present. When multiple buyers are involved, this approach can create competition and push pricing higher. What is the risk? If demand is limited, offers may come in below expectations. This often happens when the buyer pool is thin or when the property has uncertainty, such as a short lease term, tenant risk, or redevelopment challenges. When should you use Request for Offers? Use it when there is strong demand and the property is expected to attract multiple buyers. Even in these situations, active buyers and brokers will often ask for pricing guidance or a whisper price to understand where the seller expects the deal to trade. When should you use a more flexible approach? Use submit offers when you want flexibility and are testing the market. This approach allows you to respond to buyer feedback while still maintaining control of the process. Some properties are marketed without a price because the broker does not have a clear view of value. That is not the same as a strategy. When used correctly, removing the price is intentional and supported by buyer demand, positioning, and a defined process. Without that structure, it can create confusion and weaker results. We are seeing strong assets generate multiple offers with this approach, while weaker deals struggle to gain traction without pricing guidance. This strategy is not about avoiding a price. It is about allowing the market to define it when the conditions support it. If you need context, review Part 2: “Should You List Your Retail Property With an Asking Price?” In next week’s final article, read “How Strategic Underpricing Can Increase Your Retail Property Sale Price” (Part 4) , including one approach many owners overlook. If you are considering an offer-driven strategy, reach out before going to market. I will help you determine if your property can support it and how to structure it properly. Call or DM me for more information. Would removing your price increase your value or create uncertainty? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CRE #InvestmentProperty #CommercialBroker #LosAngelesRealEstate #NNN #RetailInvesting #PropertySales

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • May 15, 2026
CPI surged in April as inflation soars to highest level in almost 3 years Inflation accelerated in April to an annual rate of 3.8%, the highest since May 2023, as the Iran war pushed up energy costs and raised prices across the economy. By the numbers Economists predicted inflation would jump to 3.7% on an annual basis, up from the 3.3% reading in March, according to a FactSet poll.
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