Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • July 26, 2024
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Santa Monica’s Third Street Promenade is a retail relic. Can it be saved?


Once Santa’s Monica’s signature destination for shopping and dining, the Third Street Promenade is showing its age.

Its decline has left the promenade’s landlords and city officials trying to counter years of stagnation, public safety concerns and fast-changing retail norms in an attempt to breathe new life into it.


A large white building with palm trees in front of it

Curtain rises on formal proposal to revitalize the Civic Center


The already made public, but technically secret deal to reopen Santa Monica’s Civic Auditorium will have its first formal announcement at Tuesday’s council meeting. Approval of an Exclusive Negotiation Agreement (ENA) with Revitalization Partners Group, LLC (RPG) is part of the consent calendar for the July 23 meeting but as the calendar is approved in bulk with no debate, there will be no discussion of the deal unless a councilmember specifically asks for it to be pulled from the group list.


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Big Lots’ Vacant Stores Could Be Leased Quickly in Tight Market, Analysts Say


Last month, Big Lots CEO Bruce Thorn told investors the company was "moving quickly and aggressively" to solidify its position "as America's discount home store." Then just a week later, the retailer reported it was closing as many as 40 locations and might have to cease operations. Columbus, Ohio-based Big Lots, struggling for several years now since the pandemic's end, has a vast brick-and-mortar footprint. Its roughly 1,400 stores occupy about 46.6 million square feet of space. Some or all of that could be up for grabs if the company is forced to file for Chapter 11 bankruptcy protection or, worse-case scenario, has to liquidate.


A panera restaurant with umbrellas in front of it

Report: Panera Brands Explores Sale of Caribou Coffee and Einstein Bros. Bagels


Panera Brands is reportedly exploring a sale of Caribou Coffee and Einstein Bros. Bagels, according to Reuters. The deal could be valued at more than $1.5 billion. Reuters said Bank of America is running the sales process and that restaurant operators and private equity firms have shown interest in acquiring the chains. The transaction would also include Bruegger’s Bagels, Noah’s New York Bagels, and Manhattan Bagel. According to the publication, Panera wants a valuation 10 times its EBITDA of $150 million in 2024.


A box of assorted donuts from krispy kreme

Krispy Kreme sells majority stake of Insomnia Cookies


Krispy Kreme is doubling down on its doughnuts business. Krispy Kreme said it has sold its majority ownership stake of Insomnia Cookies to Verlinvest and Mistral Equity Partners. The company received $127.4 million for the sale and expects to receive an additional $45 million in the coming weeks following an Insomnia Cookies refinancing of intercompany debt. 


The front of a conn 's home plus store.

Report: Conn’s to close 100 stores, considers bankruptcy


Conn’s may be downsizing its store portfolio. The struggling, Texas-based retailer of furniture, mattresses, appliances and consumer electronics may close about 100 locations and liquidate the inventory as part of a possible Chapter 11 bankruptcy filing, reported Bloomberg. 


The front of a walgreens store with a red and white sign.

S&P Global Ratings downgrades Walgreens, citing struggles in both pharmacy and retail


S&P Global Ratings analysts have downgraded Walgreens Boot Alliance by two notches, to ‘BB’ from ‘BBB-’, which puts the drugstore company into speculative-grade territory. Analysts Diya Iyer and Hanna Zhang cited guidance for the year “notably below” their expectations, and said “material strategic changes, limited cash flow generation, and large maturities in coming years are key risks to the business.”


A person is holding a silver trophy in their hand.

Von Maur, Costco, Trader Joe’s among U.S. best retailers — by category


Quality products, reasonable prices and excellent customer service — these are the attributes that allow retailers to succeed. That’s according to Newsweek, which partnered with Statista to release the third annual ranking of "America's Best Retailers." More than 7,000 shoppers were surveyed for their opinions on retailers spanning 40 industry categories (such as apparel, electronics and supermarkets), resulting in a ranking that recognizes the 200 best places to make a purchase, according to Newsweek.



Weekly Perl: A Commercial Real Estate News Recap

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...

Retail Investors Win: New SALT Deduction Rules Could Supercharge Your Cash Flow

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

Weekly Perl: A Commercial Real Estate News Recap

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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