Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • April 12, 2024
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  • Three mascots dressed as coffee cups are standing on a baseball field.

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  • A store front for batteries plus with a sign that says now open

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  • A papa johns pizza sign hangs from the side of a building

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  • A sign for ikea is in front of a building.

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  • A billboard for yellowjackets is above a 99 cent store

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  • A large white and blue building with a parking lot in front of it.

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  • A store front of a clothing store called uniqlo.

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  • A sign for randy 's donuts with a picture of a man holding a donut

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Aldi vs. Lidl: How do the German discount grocers differ?

 

German grocers Aldi and Lidl are taking the U.S. grocery market by storm, but while the two discount grocers expand rapidly across the country, they appear to be targeting different customers, according to a new report from data analytics firm Placer.ai.



The report “Aldi & Lidl Making the Cut” shows that Aldi experienced increased year-over-year and month-over-month visits between February 2023 and February 2024. During that same period, Lidl experienced year-over-year monthly visit increases, except for January 2024. 

Three mascots dressed as coffee cups are standing on a baseball field.

These 10 retail brands are the fastest growing in the U.S., Yelp says

 

  • Chains owned by publicly traded restaurant companies accounted for half of the top 10 fastest-growing retail brands in the U.S. last year, according to a new Yelp report.
  • Jack in the Box, First Watch and Dutch Bros. were among the public restaurant chains included in the report, but they didn't crack the top 10.
  • Here are the top 10 fastest-growing brands, based on Yelp's research:


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A store front for batteries plus with a sign that says now open

Batteries Plus continues aggressive expansion

 

Batteries Plus has ambitious expansion plans for the remainder of 2024 — including putting down roots in new territories. The consumer and business specialty battery franchise opened eight new stores in the first quarter, with locations spanning Connecticut, Nevada, California, Colorado, New York and Florida. These new stores kicked off the company's goal of opening 39 stores and signing 45 additional locations before the end of the year. 

A papa johns pizza sign hangs from the side of a building

Papa Johns to add 50 new stores through new agreement


Papa Johns will expand its footprint in several key markets through a new agreement with one of its largest franchisees. The pizza chain has announced plans to open 50 new restaurants by 2028 in partnership with franchisee Nadeem Bajwa and his company, The Bajco Group, which has grown over the past 20 years to become one of Papa Johns’ largest domestic franchisees. 

A sign for ikea is in front of a building.

IKEA to Vacate Napa Valley Distribution Center

 

IKEA is planning to close its 646K SF distribution center in Napa Valley as it consolidates its West Coast logistics operations and increases in-store deliveries. The Swedish home furnishings giant announced this week that layoffs will begin in June at the warehouse it has occupied since the building was delivered in 2018 at 1 Middleton Way in.

A billboard for yellowjackets is above a 99 cent store

Former Big Lots President Wants To Save SoCal 99 Cents Only Stores

 

Former Big Lots President Mark J. Miller told local news station ABC7 he has assembled investors, some of them former 99 Cents Only executives, with the aim of acquiring some of the Southern California locations and keeping them open. The chain has a high concentration of locations in SoCal. Of its 371 total stores, 143 are in the region. Miller has changes in mind for the store, but none that seem to deviate from the brand's core offerings. 

A large white and blue building with a parking lot in front of it.

99 Cents Only Files for Chapter 11, Begins Marketing Leases

 

Retail discounter 99 Cents Only Stores is seeking Chapter 11 bankruptcy protection and begun marketing leases for the hundreds of stores it's closing as it winds down its business and a potential buyer emerges for some of its Southern California locations. Number Holdings, the direct parent company of Commerce, California-based 99 Cents Only, on Monday said it had filed voluntary petitions for relief in the U.S. Bankruptcy Court for the District of Delaware in order to "implement the previously announced orderly wind-down of its business and pursue a value-maximizing sale of its real estate and other assets. 

A store front of a clothing store called uniqlo.

Uniqlo To Expand This Year With 11 New Stores in California, Texas

 

Global apparel retailer Uniqlo is staging a comeback in the United States, with plans to open nearly a dozen stores this year by entering Texas for the first time and expanding its footprint in California after a troubled initial roll-out of the chain. Uniqlo, part of Japanese holding company Fast Retailing, said it will debut 11 new stores, with six in California and five in Texas, making up a significant number of the 20-plus new-store openings slated for North America in 2024.

A sign for randy 's donuts with a picture of a man holding a donut

Randy’s Donuts to add 7 shops with eye toward 50 locations by year-end

 

On the heels of opening a store in North Hollywood, the Inglewood, California-based donut chain will next expand in the Los Angeles area in Culver City.

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • March 20, 2026
Santa Monica Airport Conversion Project Unveiled By City SANTA MONICA, CA — Following a nearly two-year public engagement process, the city has released a draft Framework Diagram for the Santa Monica Airport Conversion Project. "The Framework Diagram brings many ideas together to find common ground about what should go where and what types of uses belong in different areas of the site," the City of Santa Monica explained in a March 11 news release....

How Rising Oil Prices and Job Losses Could Affect Retail Property Values in 2026

By Marc Perlof • March 16, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 March 16, 2026 If you own retail real estate, here’s what just changed for you. Retail property owners are asking a simple question today. Is the market about to change? Several economic signals moved quickly over the past two weeks. Oil prices surged as conflict disrupted major energy supply routes. The U.S. job market also weakened unexpectedly during the same period. Financial markets have become more volatile as investors reassess economic risks. When oil prices rise and hiring slows, real estate investors begin adjusting risk assumptions. These adjustments often appear first in lender loan standards and buyer pricing. For retail property owners, these shifts can influence demand and property values. Owners of strip centers, shopping centers, store front retail, and NNN retail properties (multi-tenant and single tenant) should watch closely. Understanding these signals early can help protect property value and guide decisions. Market Analysis and Trends Energy markets reacted first. Brent crude oil recently surged above $100 per barrel. The increase followed conflict disrupting shipping routes and global oil supply.¹ Much of the concern involves the Strait of Hormuz shipping corridor. Roughly 20 percent of global oil supply normally passes through this route. Even small disruptions there can quickly affect shipping costs and supply chains.¹ Consumers often feel the impact through gasoline prices. Since late February, U.S. gasoline prices increased more than 15 percent. Prices reached roughly $3.47 per gallon in early March.¹ In Southern California, fuel prices are usually among the highest nationally. Drivers in the region are already paying significantly more at the pump. Higher fuel costs can quickly strain household budgets. This often reduces spending at restaurants and other nonessential retail businesses. The labor market also signaled caution. The U.S. economy lost about 92,000 jobs in February 2026. Unemployment rose to approximately 4.4 percent during the same period.² Slower hiring typically leads to reduced consumer spending several months later. When advising retail property owners, I track three important property risks. These include tenant margin pressure, lender loan standard changes, and buyer cap rate expectations. Key signals retail property owners should monitor include: Brent crude oil moving above $100 per barrel during Middle East supply disruptions.¹ U.S. gasoline prices rising more than 15% since late February.¹ The U.S. economy losing roughly 92,000 jobs in February while unemployment increased.² Essential Retail vs Nonessential Retail Retail categories respond differently during periods of economic stress. Essential retail includes grocery anchored centers, pharmacies, and daily service tenants. These businesses usually remain stable during economic disruptions. Consumers still need basic goods even when household budgets tighten.³ Nonessential retail categories are more sensitive to economic pressure. Restaurants, entertainment venues, and similar tenants often experience softer sales first. This usually happens when consumers reduce spending. For property owners, tenant mix becomes especially important during economic uncertainty. Centers anchored by essential tenants often remain more stable. Properties dominated by nonessential retail may experience greater sales volatility. Strategic Advice for Retail Property Owners Economic uncertainty is a good time to review several property fundamentals. 1. Review tenant stability Evaluate tenant sales performance, credit strength, and upcoming lease expirations. 2. Monitor capital markets Lenders and investors may begin tightening loan standards as risks increase. 3. Evaluate sale timing carefully Markets sometimes offer short windows before buyer pricing adjusts to new conditions. Even a 1/4% to 1/2% increase in cap rates can affect property values. For example, a $6 million retail property valued at a 6% cap rate generates about $360,000 in annual income. If buyer expectations move to a 6.5% cap rate, value could fall near $5.5 million. If you own retail property and are wondering how these economic signals could affect buyer pricing or cap rates for your asset, this is exactly the type of analysis I help owners evaluate before making a sale or hold decision. If investor cap rates in your market moved just 1/2% higher, how much would the value of your retail property change? Investor Behavior During Uncertain Markets Market volatility often changes how investors evaluate retail properties. Research shows that investors prefer assets with stable income during uncertain periods. Properties with strong tenants and longer lease terms usually attract the most buyer interest.³ Assets with predictable cash flow often perform better during market uncertainty. Properties with weaker tenants or short lease terms may face greater scrutiny. For retail property owners, tenant quality and lease structure matter even more in volatile markets. What This Means for Retail Property Owners Retail property values depend on more than location. Energy prices, employment trends, and capital markets also influence buyer demand. If oil prices stay elevated and hiring slows, investors may become more selective. Properties with weaker tenants or short lease terms may see pricing pressure first. Well located shopping centers with strong tenants and long leases usually remain more resilient. Owners who monitor these signals early often have more strategic options. If economic uncertainty continues over the next twelve months, how strong are the tenants in your retail property? #RetailRealEstate #CommercialRealEstate #NNNProperties #ShoppingCenters #RetailPropertyOwners #CREInvesting #RealEstateInvestors #CREMarketInsights #RealEstateTrends #CaliforniaRealEstate #LosAngelesRealEstate #CapRates

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • March 13, 2026
US consumer inflation steady before Iran conflict drives up oil prices WASHINGTON, March 11 (Reuters) - U.S. consumer prices rose moderately in February as rents maintained a steady pace of increases, though households paid more for gasoline and at the supermarket and higher costs are in store because of the escalating war in the Middle East .  The Consumer Price Index report from the Labor Department on Wednesday, which also showed underlying inflation muted ​last month, covered the period before the U.S. and Israel launched strikes against Iran. The attacks at the end of February were met with retaliation by Tehran and have boosted oil prices...
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