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.

By Marc Perlof September 12, 2025
Cherished Malibu Seafood Shack The Reel Inn May Rebuild After State Reversal  Malibu’s one-of-a-kind seafood spot, The Reel Inn, may once again serve its signature fish puns and fried and grilled platters on Pacific Coast Highway after the state reversed its earlier position that blocked the restaurant’s return, according to Eater LA...
By Marc Perlof September 8, 2025
Hey, Retail Real Estate Rockstars! The Big Beautiful Bill (H.R. 1) has completely changed the rules for State and Local Taxes (SALT), which is great news for any property owner who has ever cringed when they see their tax bill. For those of you investing in retail real estate, this is the kind of victory that calls for a double espresso and a fresh pro forma. We're talking about actual tax relief in 2025. Let's dissect it. What Just Happened? The SALT deduction cap, once stuck at $10,000 per household, has officially increased to $40,000 for joint filers and $20,000 for single filers — but only between 2025 and 2029. After that, it’s back to the old cap unless Congress re-ups¹. Important Clarification for Property Owners While the IRS frames the new SALT cap in terms of individual filers ($20,000 single / $40,000 joint), the impact depends on how your retail property is owned: LLCs, Partnerships, and S-Corporations (Pass-Throughs): Income, expenses, and property taxes flow through to the owners’ personal returns. The higher SALT cap allows greater deductions here, boosting post-tax cash flow for the individual owners. Trusts & Estates: Similar pass-through treatment, meaning beneficiaries or trustees may capture the benefit depending on structure. C-Corporations: The SALT cap generally doesn’t apply, since corporate taxes are calculated differently and deductions follow corporate rules. REITs (Public or Private): REITs have their own tax regime, but shareholders who receive pass-through income may benefit at the individual level. Direct Individual Ownership: If you hold the property in your own name, property taxes fall directly under the SALT deduction rules. If you live in a high-tax state like California, New York, or New Jersey, this means you can deduct a lot more of your state income, property, and local sales taxes on your federal returns. Why Retail Property Owners Should Care More Deductible Property Taxes You can lower your taxable income on your federal return by deducting a larger portion of your high property taxes on retail assets. Boosts Post-Tax Cash Flow Increased deductions = less tax paid = more cash in your pocket. Offsets Reassessment or NNN CAM Spikes With inflation and property tax reassessments squeezing margins, this SALT cap increase gives you some room to breathe¹. Attractive to High-Income Buyers New investors seeking tax efficiency may find your retail property more alluring if you offer larger deductions. Strategic Planning Window: 2025–2029 These changes expire after 2029, so use this window wisely — structure sales, 1031 exchanges, or renovations when you can best leverage the deduction bump¹. Real Data, Real Impact The original SALT cap from the 2017 Tax Cuts and Jobs Act was projected to cost Californians alone over $12 billion in lost deductions annually². Nearly 30% of households in high-cost areas maxed out the previous SALT deduction limit². What About NNN Leases? Here’s the twist: if your property is on a triple-net (NNN) lease, your tenants — not you — pay the property taxes. For Landlords: The SALT cap change doesn’t directly benefit you, since you aren’t the one writing the property tax check. For Tenants: They may be able to deduct more of those property taxes on their federal returns, depending on how their business or personal tax filings are structured¹. Smart Move: Share this info with your tenants. Suggested Subject Line for Tenant Email: “You May Benefit from New Tax Deduction Rules (H.R. 1)” A simple note saying, “The new federal tax law (H.R. 1) increased the SALT deduction cap for 2025–2029. Since you pay property taxes under your NNN lease, this may be relevant for your tax planning. Please confirm with your CPA.” That small gesture positions you as knowledgeable, supportive, and proactive — which builds goodwill and strengthens tenant relationships. If you’re considering a sale, refinance, or exchange between now and 2029, let’s talk strategy while this deduction window is wide open #RetailRealEstate #CommercialRealEstate #TaxStrategy #SALTdeduction #PropertyOwners
By Marc Perlof September 5, 2025
The Iconic Reel Inn Malibu To Say Goodbye After 36 Years Plans to resurrect The Reel Inn Malibu after the Palisades Fire have been shelved following a decision by the California Department of Parks and Recreation not to renew the restaurant’s lease, as reported by The Wall Street Journal. The move effectively closes a 36-year chapter for the 144-seat seafood shack on Pacific Coast Highway, long recognizable for surfboards on the walls, clever signage, chalkboard menus, and the relaxed Malibu customers...
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