Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • March 8, 2024
A banner for weekly commercial real estate news recap
A target store with a stop sign in front of it

Target to open 300 stores over next decade

 

Target Corp. reported fourth-quarter sales and earnings above Street expectations amid lower markdowns and improved in-stocks, but warned of sluggish sales for the current year. Separately, the retailer said it will launch a paid membership program, called Target Circle 360, in April. The program, announced at Target's investor day,  will include unlimited free same-day delivery for orders over $35 in as little as one hour and two free-day shipping, along with other perks. 


A fast food restaurant with a blue roof and blue awnings

Regional Dutch Bros Coffee Chain Brews Up National Expansion

 

When Dutch Bros debuted its first coffee shop last month in California's Orange County, throngs of people were waiting. Some had arrived the night before, and others traveled from as far as Arizona for the grand opening that morning. The line to get served "stretched for more than a mile," Christine Barone, the chain's CEO, said during the company's call to discuss its fourth-quarter earnings.


A restaurant with a sign that says `` order here ''.

Founders Table Forges Growth Plan for Collection of Premium Fast Casuals

 

Founders Table Restaurant Group comprises concepts created by operators who never let go of their curiosity. Chopt cofounders Tony Shure and Colin McCabe wondered why salad couldn’t be a side dish. Brothers Liam and Oliver Kremer wanted to know why they couldn’t find a decent mission-style burrito in New York, which led to Dos Toros. FIELDTRIP founder and James Beard Award-winning chef JJ Johnson had a vision to bring healthy rice bowls to Harlem when no one else did. 


The front of a foot locker store in washington heights

Foot Locker in Q4 loss; to unveil store of the future, revamp existing stores


Foot Locker ended its fiscal year on a slightly downbeat note, reporting a loss for the fourth quarter and issuing weak guidance. Despite the loss, the athletic shoe and apparel retailer still beat analysts’ expectations. But it warned that it would not meet the  profitability goal — to reach an EBIT margin of 8.5% to 9% by 2028 — it disclosed at its March 2023 Investor Day on time 


Cars are parked in front of a ross dress for less store

Ross Stores to open 90 new stores in 2024


Ross Stores easily topped expectations for its fourth quarter, but warned that housing, food and gasoline costs continue to put pressure on its customers. In a statement, CEO Barbara Rentler cited the “sustained” sales momentum that began in its second quarter and continued through the holiday season, but cautioned there remains “ongoing uncertainty in the macroeconomic and geopolitical environments.” 


A club sandwich is stacked on top of each other on a plate on a table.

McAlister’s Cracks $1 Billion, but Best is Yet to Come


For the first time in company history, McAlister’s surpassed $1 billion in sales in 2023, fulfilling a prediction the chain tracked for a few years now. It’s a big number, but chief brand officer Mike Freeman says the accomplishment boils down to a handful of key pillars. The first is decision-making and leading with the guest experience. The second is legacy franchise ownership and brand leadership working harmoniously to drive the company forward. 


A fried chicken sandwich with lettuce , tomato , onions and french fries on a plate.

Roots Chicken Shak Unveils a Unique Path to Expanding Beyond Food Halls


Tom Foley typically doesn’t eat fried food. Yet, during a menu tasting for chef Tiffany Derry’s duck-fat fried chicken concept Roots Chicken Shak, Foley took one bite of the Big Bird sandwich, “and I didn’t stop. I finished it,” he recalls. “And then Tiffany comes out with a Spicy Bird, the spicy version of it. I took a bite and finished it. At one point she looks at me, because we still have chicken wings and tenders to go through, and Tiffany goes, ‘you know this is a tasting, right?’ I’m not so sure if that’s how you’re supposed to have a tasting.”


An artist 's impression of a grocery store with a green ceiling.

Whole Foods to roll out small-format store concept — here’s what it will look like


Whole Foods Market is going small with a new concept for dense metro areas.The natural and organic foods grocer is launching a “quick-shop” store format that’s designed to provide customers in urban neighborhoods a quick and convenient shopping experience. Dubbed “Whole Foods Market Daily Shop,” the stores will range between 7,000 sq. ft. to 14,000 sq. ft., which is about a quarter to half the footprint of an average 40,000-sq.-ft. Whole Foods location. 


A grocery outlet is now open in a shopping center.

Grocery Outlet to open 15 - 20 stores in 2024; 100 approved sites for 2025 and 2026


Grocery Outlet Holding Corp. is expanding its reach.The extreme discount grocer opened 13 new stores during its fourth quarter, including its first location in Ohio, for a total of 468 stores in nine states. It plans to open 15 to 20 new stores in 2024.


A red building with the word appetizers on it

Ribs With Your Pancakes? Applebee’s and IHOP Placed Under One Roof As Eateries Test Formats


Dine Brands Global is looking to develop more dual-branded restaurants, blending some of its new Applebee’s and IHOP restaurants into one eatery under the same roof to save money on real estate and supplies while driving more sales. Competitors including Outback Steakhouse and the Cheesecake Factory are also looking for property efficiencies. They are planning expansions and remodeling restaurants to capitalize on steady restaurant spending of the past three years after dining room shutdowns of the COVID-19 pandemic’s early months. 


An artist 's impression of a burger king restaurant

Church’s Road Back Began with Finding Itself Again


This compass—“who we are”—has served as the central theme in the 72-year-old brand’s turnaround since Guith, a former GoTo Foods (then Focus Brands) executive, arrived in early August 2022. Church’s was founded in 1952 in San Antonio, Texas, by George W. Church. It was a walk-up stand located a block south of the Alamo that sold two pieces of chicken and a roll for 49 cents. It began as “Church’s Fried Chicken-To-Go.” 


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

Dutch Bros to open 150 to 165 shops in 2024; moving some corporate jobs to Phoenix


Dutch Bros ended the year on an upbeat note as it continues to drive new store growth. The fast-growing drive-thru coffee chain’s total revenue rose 25.9% to $254.1 million in the fourth quarter (ended Dec. 31). For the full year, total revenue grew 30.7% to $965.8 million.


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
By Marc Perlof • October 26, 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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