Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • February 16, 2024
A group of people are walking down a tiled floor.

NRF: January retail sales are ‘great’ start to new year


Consumers kept shopping in January. Retail sales in January nearly matched December’s busy holiday spending and rose significantly year-over-year, according to the CNBC/NRF Retail Monitor, powered by Affinity Solutions, released by the NRF. 

A chipotle restaurant is located in a residential area.

Chipotle Speeds Toward Even Greater Heights


You could say Chipotle had an enviable problem. The brand’s digital growth out of COVID soared rewards membership over 35 million and loaded up the backline to the point where stores became unbalanced in staffing. In the summer of 2022 or so, Chipotle launched what it dubbed “Project Square One.” As it sounds, the notion was to return to basics on the in-store experience that helped Chipotle define a category over three decades ago.

The outside of an arby 's restaurant with picnic tables and umbrellas.

Report: Inspire Brands Could Go Public in $20 Billion Valuation


According to a Wednesday report from Bloomberg, Inspire Brands-backer Roark Capital has held preliminary discussions with potential advisers to take the multi-concept giant public. An initial public offering would arrive in late 2024 or 2025, depending on market conditions, sources told the publication, with Inspire commanding a value of roughly $20 billion. 

An aerial view of a city with lots of buildings and streets.

15-story hotel planned next to new L.A. Clippers arena in Inglewood


Just south of Intuit Dome, where the L.A. Clippers are scheduled to begin playing games next season, Los Angeles-based Arya Group, Inc. is planning a mid-rise hotel development which would rank among the tallest buildings in Inglewood. The proposed project, slated for a site at 3820 W. 102nd Street, calls for razing a low-rise commercial building to make way for a new 15-story, approximately 310,000-square-foot building featuring a 174-room hotel, 3,255 square feet of offices, 6,537 square feet of hotel restaurant space, 1,310 square feet of lounge space, a 4,000-square-foot private club, and 4,000 square feet of spa and amenity space. 

An artist 's impression of a burger king restaurant at night.

Thanks to $400M Plan, Burger King Sees Guests Returning to Restaurants


The chain reported low-single-digit traffic growth in Q4, which was the first positive increase since Q2 2021. Also, U.S. same-store sales rose 6.4 percent, lapping 5 percent growth in the year-ago period. For the year, comps lifted 7.5 percent, rolling over 2.2 percent in 2022. Burger King franchisees are making more money as well. Average profitability per restaurant increased nearly 50 percent in 2023, moving from $140,000 to more than $205,000.

The front of a kroger store with a blue sky in the background

Kroger promises to lower prices, invest in stores following merger


The Kroger Co. has detailed its commitment to customers as it faces regulatory scrutiny over its proposed acquisition of rival Albertsons Cos. The supermarket giant said, consistent with its previous approach to mergers, it will lower prices following its merger with Albertsons. It plans to invest $500 million to lower prices following the close of the deal — starting day one.  It also will also invest $1.3 billion to improve Albertsons' stores. 

Two security guards are standing next to each other on a sidewalk in front of a ups truck.

Legion averages 100 “engagements” a day during first month of downtown deployment


The newly hired private security company patrolling Downtown Santa Monica reported more than 3,000 interactions during its first month on patrol and while local businesses say the systemic problems persist, some say they’ve seen signs of improvement recently. During the first meeting of the Downtown Santa Monica Inc., (DTSM) Board of Directors for 2024, security company Legion Corporation, presented a report on its first month of operations.

A brick building with a red and white sign that says snipple on it.

Shipley Do-Nuts’ Texas Roots Blossom into National Success


He worked as the chief executive of Korean fast-casual Bonchon for four and a half years and in marketing roles at Wingstop for the same amount of time. One of his biggest memories—or nightmares, if you think about it—was the cyclical nature of the chicken market, where operators live and die by what the price is on any given day, week, or month.

A shell gas station with a car parked in front of it.

Shell to acquire 45 convenience stores in New Mexico


Shell is expanding its U.S. retail footprint. The company has signed an agreement  to acquire Brewer Oil Company’s (BOC) retail division, which includes 45 fuel and convenience store sites in New Mexico. The acquisition also includes traditional fueling stations and cardlocks for fleet vehicles.

A man in a suit and white shirt is smiling for the camera.

World’s Largest Franchisee Flynn Group Explores Sale


Sources told Reuters that the majority interest could be valued at more than $5 billion, including debt. The company is working with Bank of America on the sales process. Flynn Group, founded in 1999 by industry veteran Greg Flynn, is the largest operator of Applebee’s, Arby’s, and Pizza Hut, and also owns hundreds of stores for Taco Bell, Panera, and Wendy’s. Altogether, the company oversees more than 2,600 units and earns more than $4.5 billion in annual sales. 

A dutch bros store with a truck parked in front of it.

Positioned for Success: Retail, dining segments to watch in 2024


Amid price hikes, rising interest rates and mounting consumer debt,  the retail industry did pretty well in 2023 — certainly a lot better than some experts had predicted — as consumers continued to shop. As to what to expect this year, foot traffic analytics firm Placer.ai has dived into its rich treasure chest of data to find which segments are best positioned for success in 2024. 

By Marc Perlof • November 2, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 November 2, 2026 If you own retail real estate, here’s what just changed for you. One of the biggest risks to a retail property is not always one owner making a bad decision. It is multiple owners failing to make a decision at all. When family members, business partners, or other co-owners delay action, the cost can show up through lost income, higher expenses, missed opportunities, weaker financing, or a lower sale price. Retail properties are often owned by siblings, spouses, business partners, LLC members, family offices, trusts, or investment groups. Each owner may have a different financial goal, timeline, and tolerance for risk. Disagreement is normal. The larger problem is having no clear process for turning disagreement into a decision. Even if you own the property by yourself today, these same decisions often become the responsibility of a spouse, children, successor trustee, or other heirs in the future. A clear decision process today can help prevent confusion later. What Do Multiple Owners Commonly Miss? Many ownership groups assume waiting is the safest choice when they cannot agree. They delay a lease decision, postpone repairs, wait to refinance, or hold off on selling until everyone feels comfortable. That may reduce conflict in the moment, but it does not stop the property from changing. Leases move closer to expiration. Deferred maintenance grows. Financing terms and buyer demand can change. Waiting may feel neutral, but its financial effect rarely is. Good properties are often held back by poor decision processes, not poor real estate. The issue becomes harder when each owner defines success differently. One partner may want monthly income. Another may want to sell and reinvest. One sibling may want to keep the property because it has been in the family for decades, while another may need cash for retirement or other obligations. None of these goals are automatically wrong. The ownership group still needs to decide which goal should guide the property’s current strategy. Why Do Ownership Groups Delay Important Decisions? Experience does not remove emotion, fear, or personal pressure. An owner may understand leasing and property values but still resist a sale because the property belonged to a parent. Another may reject a reasonable lease because the proposed rent is below what the space achieved years earlier. Another common reason for delay is the belief that retail property values will continue increasing over time. Many properties have appreciated over long periods, but that does not automatically make waiting the best financial decision. While ownership waits, leases age, capital needs grow, financing changes, and buyer demand shifts. A property’s future value depends on much more than appreciation alone. The better question is not, “Will this property be worth more someday?” It is, “Will waiting create a better overall financial result than acting today?” Owners may also delay because they want to avoid regret. They worry that selling now could mean missing a higher price later, or that completing an improvement could waste money. That fear can cause repeated delays while income, expenses, tenant risk, and market conditions continue to change. The goal is not to make a perfect decision. It is to make the best available decision based on the property’s current income, condition, financing, leases, marketability, and ownership objectives. How Can Indecision Affect Property Value? Property value is tied closely to income, risk, and buyer confidence. If ownership delays a lease renewal, buyers may underwrite more vacancy risk. If repairs are postponed, buyers may reduce pricing for future capital costs. If owners cannot agree on a sale strategy, the property may remain exposed to tenant rollover, changing financing conditions, or new competition. Indecision can also weaken negotiations. A tenant may recognize that the owners are not aligned. A buyer may question whether the group can approve terms, respond to due diligence, or close on schedule. A lender may require clear authority before moving forward with refinancing. The cost may not appear as one large loss. It often shows up through additional vacancy, higher repair costs, reduced leverage, lost rent, or a weaker offer. Over time, those smaller consequences can materially reduce value. What Should the Ownership Group Decide First? The first decision is not whether to sell, refinance, lease, improve, or hold. It is agreeing on the ownership group’s primary objective. Is the priority current cash flow, long term appreciation, preserving the property for the next generation, reducing risk, or preparing for a sale within a defined period? Once that objective is clear, the group can compare each option using the same standard. A lease proposal can be measured by its effect on NOI, flexibility, and value. A capital improvement can be evaluated based on cost, expected rent, tenant demand, and sale impact. A sale can be reviewed based on net proceeds, taxes, timing, and reinvestment options. Without a shared objective, every discussion becomes a debate over personal preferences. With a shared objective, the group can focus on what best supports the investment. Real Deal Insight I recently advised a family that owned a retail property through multiple siblings. One wanted to sell, another wanted to continue collecting income, and another wanted to wait because they believed the property’s value would continue increasing. Before discussing pricing or marketing, I helped the ownership group compare the financial consequences of each option, including projected income, future capital needs, lease rollover, holding costs, and the risks of delay. Once everyone reviewed the same information, the discussion shifted from individual opinions to the property’s investment objectives. That allowed the group to make an informed decision based on facts instead of assumptions. Strategic Advice for Retail Property Owners If your property has multiple owners, start by defining the group’s main investment objective and expected holding period. Each owner should understand whether the current goal is income, growth, preservation, redevelopment, refinancing, or sale. Then decide how major property decisions will be reviewed. The group should know who gathers the information, who has authority, what requires a vote, and how long the group has to respond. Governance and legal issues should be reviewed with the appropriate attorney, CPA, or other licensed advisor. The goal is not more meetings. It is a process that allows the group to decide before delay limits the available options. Owner Self-Assessment If your ownership group had to decide today whether to renew a major tenant, complete a capital improvement, refinance, or sell, would every owner agree on the property’s main objective and how the decision should be made? Final Takeaway Multiple owners do not need to agree on everything, but they need a clear process for making decisions before delay reduces income, options, or value. In next week’s blog, “The Hidden Cost of Waiting: How Decision Delays Reduce Property Value,” I will explain how indecision can affect lease negotiations, repairs, financing, buyer interest, and property value. If your retail property has multiple owners, I can help your group compare the financial impact of holding, leasing, improving, refinancing, or selling before indecision limits the available choices. The quality of a retail property’s decisions often depends less on the property itself and more on the process the owners use to make those decisions. Is your ownership group protecting the property by waiting, or is waiting quietly becoming the most expensive decision? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #PropertyOwners #FamilyPartnership #BusinessPartners #FamilyOffice #InvestmentProperty #ShoppingCenters #MarcRetailGuy
By Marc Perlof • October 30, 2026
Tractor Supply Q3 sales rise 5.1%; to moderate new store openings Tractor Supply Company delivered third-quarter earnings and sales that beat analyst expectations and said it was gaining share against most categories and metrics even as its customers remain cautious. On the company’s earnings call, CEO Hal Lawton said that elevated interest rates and reduced housing mobility are weighing on property improvements and larger projects. Pet ownership headwinds, particularly new pet acquisition, continue to affect demand in certain categories...
By Marc Perlof • October 28, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 October 26, 2026 If you own retail real estate, here’s what just changed for you. A lease guaranty can become less useful if the tenant changes entities, the guaranty expires, or a later agreement releases a guarantor. That can affect your income security, refinancing options, and property value. The main owner decision is whether the guaranty still supports your planned hold, refinance, renewal, or sale. Why Should You Review a Lease Guarantee Every Few Years? Many owners review the lease when they buy the property and do not examine the guaranty again until there is a tenant problem or planned sale. During that time, the tenant may be acquired, reorganized, assigned to another entity, or operating under a guaranty that is capped, reduced, or approaching expiration. A review every few years can help you identify those issues while you still have time to respond. Annual Lease Guarantee Review Checklist 1. Confirm the Current Tenant and Every Guarantor Start with the exact legal name of the tenant currently responsible for the lease. Then identify every company or individual that signed a guaranty. Do not rely on the brand name displayed at the property. The company on the sign may not be the legal tenant or the entity supporting the rent. Confirm whether the guaranty comes from the national parent ompany, a subsidiary, an affiliate, a franchise operator, a location-specific LLC, an individual, or more than one guarantor. 2. Check What the Guaranty Covers and When It Ends A signed guaranty may not cover every lease obligation for the entire lease term. Determine whether it is full, capped, reduced over time, limited to certain lease years, or restricted to specific obligations. It may cover base rent but exclude additional rent, property expenses, repair obligations, or legal costs. Compare the guaranty term with the remaining lease term. Do not assume that a lease extension automatically extends the guaranty. 3. Review Later Documents and Ownership Changes The original lease and guaranty may have been changed by later documents. Review amendments, extensions, assignments, assumption agreements, landlord consents, estoppel certificates, ownership change notices, and any guarantor releases or replacements. A tenant may continue using the same brand while the legal tenant, ownership structure, or guarantor changes behind the scenes. When the relationship among the tenant, guarantor, parent company, and affiliates is unclear, request an organizational chart or entity structure. The chart can explain how the companies are connected, but the lease and guaranty documents still determine who is legally responsible. Qualified legal counsel should confirm unclear obligations. 4. Review the Guarantor’s Current Financial Support A guaranty is only as useful as the company or person behind it. Depending on your lease rights and the information available, review current financial information, rent payment history, operating locations, recent closures, ownership changes, and whether the guarantor still appears to own meaningful assets. The goal is not to complete a full credit analysis. It is to determine whether the support behind your rent is still consistent with what you believed when you bought the property or negotiated the lease. 5. Compare the Guaranty with Your Ownership Plan The value of a guaranty depends partly on what you plan to do with the property. If you expect to hold for several years, determine whether the guaranty lasts through your planned ownership period. If you think you are going to refinance, renew, or sell, consider whether the guaranty will still provide meaningful support at that time. You should also consider what happens if the tenant leaves. Contract rent, market rent, vacancy downtime, leasing commissions, tenant improvement costs, repairs, and replacement demand can all affect NOI, capital needs, and net sale proceeds. The central question is whether the guaranty, the underlying real estate, or both support your next major ownership decision. Owner Self Assessment Could you clearly explain who guarantees your largest tenant’s rent, what the guaranty covers, when it ends, and whether it still supports your ownership plan? Reviewing your lease guaranty every few years can help you identify income, financing, vacancy, and value risks before they limit your options. Contact me for the expanded Retail Lease Guarantee Review Checklist . It includes a more detailed document list, guarantor review questions, financial and ownership checks, vacancy and replacement cost considerations, and a one page owner summary you can use before a refinance, renewal, hold, or sale decision. Are you relying on a guaranty that will still provide meaningful support when you refinance, renew the lease, or sell the property? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #NetLease #LeaseGuarantee #CorporateGuarantee #TenantCredit #PropertyValue #RetailInvesting #InvestmentSales #MarcRetailGuy #MarcPerlof
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