Weekly Perl: A Commercial Real Estate News Recap
Marc Perlof • August 12, 2024
Big Lots closing about 300 stores; California takes big hit
In a new filing with the Securities and Exchange Commission, the Ohio-based discounter revealed it may shutter up to 315 stores under amended credit and loan terms. In a June SEC filing, Big Lots, which has about 1,390 stores nationwide, said it was planning to close between 35 to 40 stores in 2024. In the same filing, the company also warned of its ability to survive as a "going concern.”
Portillo’s Relies on Four-Part Strategy to Claw Back Sales and Traffic
During a time when price-pointed value is ruling the quick-service segment, Portillo’s refuses to get involved with aggressive promotions and discounting. Instead, the legacy chain wants to bring value by improving the overall dining experience.
The Aldi store conversion begins as Winn-Dixie closes in Florida
A Winn-Dixie store in Lakeland, Fla., recently served its final customers, and 48 workers were let go, reports the Business Observer.
U.S. Drugstores Revamp Business Models Amid Challenges
Facing more competition and changing consumer preferences, drugstores like Walgreens and CVS Health are experimenting with smaller locations.
Daiso to expand U.S. store count – here's where
Japanese retailer Daiso is expanding its footprint in the United States with three new openings this week.
The chain, which sells household goods, stationery, beauty products and more, will open new locations in Beaumont, Texas, Van Nuys, Calif. and Westminster Calif. on Saturday, Aug. 10.
The 2024 QSR 50: Fast Food’s Leading Annual Report
The quick-service industry has entered a key turning point in the post-COVID environment. After a few years of big-time operators claiming customers understand inflationary prices, that tolerance has seemed to dissipate quickly.
Rubio’s to Be Sold to New Private Equity Owner
TREW Capital Management, founded by former Famous Dave’s CEO Jeff Crivello, will use a $40 million credit bid to acquire the chain’s assets. That means instead of a traditional sale, the private equity firm will use the debt it’s owed as a form of currency to gain control of Rubio’s.
By Marc Perlof | @MarcRetailGuy CA #01489206 September 14, 2026 If you own retail real estate, here’s what just changed for you. Why CASp Reports Matter A Certified Access Specialist (CASp) report can help a California retail property owner understand accessibility issues before they become a bigger problem. It may identify concerns involving parking, paths of travel, entrances, doors, restrooms, signage, counters, slopes, and common areas. The value of a CASp report is clarity. It helps an owner understand what issues exist, what may need to be corrected, what may affect a lease or sale, and what requires legal guidance. But owners should be careful. A CASp report should not be ordered casually with no plan. If a report identifies issues and the owner does nothing, the owner may create a record of known problems without a strategy to address them. For retail property owners, the real value of a CASp report is not the report itself. It is reducing uncertainty before that uncertainty turns into buyer leverage, tenant demands, settlement pressure, or a lower sale price. What Is a CASp Report? A CASp inspection is performed by a trained accessibility professional who reviews a property for construction-related accessibility issues. For retail owners, a CASp report may review customer-facing areas such as parking, access aisles, ramps, walkways, entrances, doors, restrooms, counters, signage, slopes, and common areas. The exact scope depends on the property, the tenant use, and the purpose of the inspection. That matters because many owners do not know where the problems are until someone else points them out. That someone may be a plaintiff, attorney, tenant, buyer, lender, or inspector. Why Timing Matters Timing matters with CASp reports. In some situations, getting a CASp inspection before a claim may provide more options than waiting until after a lawsuit is filed. Owners should confirm the timing, legal effect, and any potential benefits with an Americans with Disabilities Act (ADA) attorney before relying on a CASp report. This is one reason retail owners should think about accessibility before there is pressure. Before a lawsuit, sale, refinance, major lease negotiation, tenant turnover, or remodel, an owner may have more control. The owner can speak with an attorney, decide whether a CASp inspection makes sense, evaluate the findings, budget for work, and create a plan. After a lawsuit or during escrow, the owner may have less control. Deadlines are tighter. Buyers may use the issue as leverage. Tenants may resist responsibility. Repairs may need to be priced quickly. That is when unknown risk becomes expensive. Can a CASp Report Create a Problem? Yes, if the owner handles it poorly. A CASp report can be helpful, but it can also create pressure if it identifies issues and the owner ignores them. The problem is not the report itself. The problem is having knowledge of potential issues with no plan to address them. That is why owners should speak with an ADA attorney and a qualified accessibility professional before ordering inspections, making written statements, or starting repairs. The right sequence matters. Get the right guidance. Define the purpose of the report. Review the findings. Create a realistic plan for what can be corrected, what may need more review, and what should be documented. How CASp Reports Can Affect Property Value CASp reports can affect value because they reduce uncertainty. Buyers do not only look at rent, Net Operating Income (NOI), lease term, cap rate, and tenant strength. They also look at risk. If a buyer sees unresolved ADA concerns with no report, no explanation, and no plan, the buyer may assume the worst. That can lead to a lower offer, a repair credit, a price reduction, a holdback, a longer due diligence period, or stronger seller protections. A CASp report can help shift the conversation from guessing to facts. That does not mean every buyer will ignore the issue. It does not mean the property is perfect. But it can help the owner show that the issue has been reviewed and that there is a plan. In real estate, fear often creates bigger discounts than facts. If a repair costs $20,000, the owner wants the discussion to be about $20,000, not a buyer guessing the issue could cost $100,000. That is how clarity can protect value. How CASp Reports Can Affect Leasing CASp reports can also affect leasing. A restaurant, medical tenant, dental tenant, franchise operator, or service tenant may care about accessibility before signing a lease or opening for business. If the owner understands the property’s accessibility issues before lease negotiations, the owner can better decide what work belongs to the landlord, what work belongs to the tenant, and whether the issue should affect rent, tenant improvement money, free rent, or delivery condition. Without that information, the owner may negotiate blind. That can cost money. What Retail Property Owners Should Do Retail owners should not treat CASp reports as a box to check. They should treat them as part of a risk and value strategy. Speak with an ADA attorney before ordering reports or making written statements. Use a qualified CASp professional who understands commercial properties and retail access issues. Define the purpose and scope of the report before the inspection begins. Create an action plan for items that may need correction and consider how the findings could affect a sale, refinance, lease negotiation, or tenant relationship. The goal is to avoid surprises. A surprise during escrow can become a price reduction. A surprise during a lease negotiation can become extra landlord work. A surprise after a lawsuit can become settlement pressure. Final Thought A CASp report is not magic. It does not eliminate every risk, replace legal advice, or automatically protect property value. But it can give a retail property owner something valuable: clarity. For retail property owners, the real value of a CASp report is not just knowing what is wrong. It is knowing what to do next. If you are considering a CASp report before a lease, refinance, or sale, I can help you think through how the findings may affect value, timing, and buyer leverage. In next week’s blog, “Readily Achievable ADA Repairs: What Retail Property Owners Should Understand,” we will discuss why some accessibility fixes may be more manageable than owners think, how year built can matter, and why current property condition matters more than assumptions. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #CaliforniaRealEstate #RetailPropertyOwners #ADACompliance #CASp #PropertyValue #CommercialProperty #MarcRetailGuy
Morning Consult: Five Below, other retailers among 25 fastest-growing brands Five Below is one of the fastest-growing brands in the U.S. The tween and teen extreme value retailer is the No. 10 fastest-growing brand overall and the only retailer to crack the top 10 in Morning Consult’s “Fastest Growing Brands 2026” report. The study ranks the top 25 brands according to year-over-year purchasing intent. A re-launched, decades-old soda brand, Mr. Pibb, ranked No. 1. Five Below’s purchasing consideration increased 3.2 points this year, according to the report. (The retailer recently reported that its second-quarter sales r ose 22.9% to $1.26 billion...)
By Marc Perlof | @MarcRetailGuy CA #01489206 September 7, 2026 If you own retail real estate, here’s what just changed for you. Why ADA Risk Matters Americans with Disabilities Act (ADA) risk can affect a retail property owner even when the tenant operates the business. For California retail properties, accessibility issues can lead to lawsuits, settlements, Certified Access Specialist (CASp) reports, repair obligations, lease disputes, buyer concerns, and lower property value if the risk is not managed. The biggest issue is not always the cost of the repair. The bigger issue is uncertainty. Buyers, tenants, lenders, and attorneys may use unresolved ADA concerns to ask for credits, repairs, holdbacks, price reductions, or stronger lease protections. For retail owners, the goal is simple: understand the risk before a lawsuit, tenant, buyer, or lender uses it against you. Why ADA Risk Matters to Retail Property Owners Most retail property owners do not think about ADA risk until something creates pressure. That may be a lawsuit, a tenant complaint, a buyer question during due diligence, a lender request, a CASp inspection, or a repair demand. By that point, the owner is usually reacting instead of controlling the issue. This matters because ADA risk is not only a legal issue. It is also an ownership, leasing, and value issue. A retail owner may face legal costs, settlement costs, repair costs, tenant conflict, delayed closings, buyer discounts, or disclosure concerns. This year, I saw ADA issues come up on separate retail properties. Once the claims surfaced, the owners had to deal with attorneys, settlement discussions, CASp reports, and property updates. That is when ADA risk stopped being theoretical. It became a real ownership issue with real costs, real deadlines, and real value impact. The mistake many owners make is assuming the tenant is responsible for everything. That may or may not be true. The lease matters. The property condition matters. The location of the issue matters. The type of tenant matters. The owner’s control over common areas matters. The history of prior improvements also matters. In other words, ADA risk is not always simple. What ADA Risk Looks Like in a Retail Property Retail properties are exposed because customers use the property in many ways. They park, walk to the business, enter the space, move through the property, use restrooms, approach counters, and sit in dining or waiting areas. Accessibility issues may involve parking stalls, access aisles, paths of travel, ramps, sidewalks, entrances, doors, restrooms, service counters, signage, slopes, seating areas, or common areas. Some issues may be inside the tenant’s premises. Other issues may be in areas controlled by the landlord. Some may involve shared areas used by multiple tenants. Some may have existed for years without a complaint. That does not always mean the issue goes away. For owners, the practical questions are: What accessibility issues exist? Who controls the area? Who is responsible under the lease? What can reasonably be corrected? What is the cost? How could this affect value? These are ownership questions, not just legal questions. Is ADA the Tenant’s Responsibility or the Landlord’s Responsibility? This is one of the biggest questions retail owners ask. The honest answer is: it depends. A tenant may be responsible for its own operations, furniture layout, fixtures, counters, interior improvements, and customer service areas. But a landlord may still have exposure, especially if the issue involves the property itself or common areas controlled by the owner. This is why the lease matters. A strong lease should address compliance, maintenance, repairs, alterations, tenant improvements, common areas, indemnity, and legal claims. But even a strong lease may not stop a claim from being made against the owner. The lease may help determine who pays, but it may not prevent the owner from being pulled into the issue. The tenant may operate the business, but the owner still owns the property. How ADA Risk Can Affect Retail Property Value ADA risk affects value because buyers do not only underwrite income. They also underwrite risk. A buyer looking at a retail property may ask whether there have been ADA lawsuits, settlements, CASp reports, unresolved repairs, tenant complaints, or prior accessibility claims. They may also ask whether the property has accessible parking, a clear path of travel, proper signage, accessible entrances, and restrooms that fit the tenant use. If the answers are unclear, the buyer may price in uncertainty. That can reduce value. The repair cost may be manageable. The uncertainty may not be. A buyer may not know whether the issue costs $10,000, $50,000, or $150,000. When buyers do not know the number, they often assume a larger number to protect themselves. That is how a repair issue becomes a pricing issue. A buyer may ask for a price reduction, repair credit, escrow holdback, longer due diligence period, legal review, updated reports, or stronger seller representations. In some cases, the buyer may use the issue to renegotiate the deal. In other cases, the buyer may decide the risk is not worth it. This is the “so what” for the property owner. Unmanaged ADA risk can reduce leverage. Reduced leverage can reduce value. How ADA Risk Can Affect Leasing ADA issues can also affect leasing. A new tenant may require accessibility improvements before opening. A franchise tenant may have stricter standards. A restaurant may care about parking, seating, restrooms, service counters, and path of travel. A medical or dental tenant may care even more because patients may include older customers or people with mobility limitations. If the property has unresolved accessibility issues, the tenant may ask for landlord work, tenant improvement money, free rent, rent reductions, a longer due diligence period, or lease protections. The owner may still complete the lease. But the deal may become more expensive. That affects Net Operating Income (NOI). If NOI is reduced, value may be reduced. What Retail Property Owners Should Do Retail owners should not panic. They should get organized. Review the areas customers actually use. This may include parking, access aisles, paths of travel, entrances, doors, ramps, restrooms, counters, signage, and common areas. Review the lease. The owner should understand who is responsible for compliance, repairs, common areas, tenant improvements, legal claims, and indemnity. Consider whether a CASp inspection makes sense. This may be especially important before a sale, refinance, major lease negotiation, tenant turnover, or if there are obvious access issues at the property. Get proper legal and accessibility guidance. ADA and California accessibility claims can be technical. Owners should not rely only on guesses, tenant comments, broker opinions, or internet searches. Think about value. The question is not only, “What will this cost to fix?” The better question is, “What could this cost if it shows up during a lawsuit, lease negotiation, refinance, or sale?” Being proactive is smart, but it should be done carefully. Owners should not rush into inspections, written statements, or repairs without first speaking with an ADA attorney and a qualified accessibility professional. The goal is not to create a report with no action plan. The goal is to understand the risk and make controlled decisions. Final Thought ADA risk is not just a tenant problem. It can affect the owner, the lease, the tenant relationship, the buyer pool, the sale process, and the value of the asset. For retail property owners, the goal is not fear. The goal is control. If the owner understands the issue early, the owner can plan, budget, negotiate, repair, disclose, or address the risk before someone else uses it as leverage. If you own a retail property with public access, I can help you review how ADA risk may affect leasing, buyer questions, and future sale value before it becomes a negotiation problem. In the next week’s blog, “CASp Reports and Retail Property Value: What California Owners Should Know,” we will discuss what a CASp report can reveal, why timing matters, and how knowing the issues early can help protect a retail property owner’s leverage. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #CaliforniaRealEstate #RetailPropertyOwners #ADACompliance #CASp #PropertyValue #CommercialProperty #MarcRetailGuy
