Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • May 9, 2025
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Rite Aid To Close All Stores: See Full List of Locations


Rite Aid Corporation, one of the nation's largest pharmacy chains, is preparing to close all of its remaining stores as part of ongoing bankruptcy proceedings. The closures mark the final phase in a process that began with the company filing for Chapter 11 bankruptcy protection in October 2023, amid mounting debt and hundreds of lawsuits over its alleged role in the opioid crisis...

A man and woman are shaking hands with a car dealer in a car showroom.

Panda Express, Off Another Solid Growth Year, Appears Ready for More


Given its heavy corporate footprint and family-owned roots, Panda Express has long been one of the category’s under-the-radar growth stories. But that’s been steadily ramping up in recent years, with plans to hit another level in 2025.


The 1983-founded brand grew by a net 89 restaurants last year to reach 2,502, according to its recent FDD. That was a material step-up from 61 in 2023 and 53 the year prior...

A group of people are standing outside of a barnes & noble store.

Bob’s Discount Furniture to open 20 new stores in 2025 — here’s where


Bob’s Discount Furniture is expanding into the Southeast as part of its 2025 growth strategy.


The fast-growing furniture retailer plans to open 20 new stores this year as it continues to expand its footprint. The locations will include six stores in North Carolina, marking Bob’s entry into the Southeast. The North Carolina expansion will include Bob’s 200th store....

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Rite Aid blames latest bankruptcy on retail operations


For its 2023 bankruptcy, which ended last fall, Rite Aid blamed macroeconomic factors and business challenges arising from the pandemic. For its 2025 bankruptcy, which commercial Monday, the drugstore chain says its front-of-store retail operations are largely at fault.


In a letter sent to vendors this week, the company said it has “generally stopped purchasing goods and services,” except those that will get it through its latest bankruptcy...

The front of a rite aid store with a sign on it.

Skechers to go private in $9.4B deal


3G Capital is paying $63 per share in cash, which analysts say represents a bet that the footwear sector will be profitable in the long term despite tariffs.


Dive Brief:

  • Skechers has agreed to be acquired by 3G Capital and will cease trading on the New York Stock Exchange upon completion of the deal, according to a press release Monday...
A variety of fruits and vegetables are displayed in a grocery store.

McDonald’s to Test CosMc’s Beverages in Existing Restaurants


When McDonald’s debuted its beverage spin-off CosMc’s in December 2023 to lines four hours deep, it always felt like a larger play could be at work. There wasn’t a ton of mystery for why McDonald’s made a drinks-focused move—the specialty beverage category was tagged a $100 billion opportunity, and one cracked open in recent years by cold innovation. And just from a demographic tilt, per Circana, Gen Z made nearly 5 billion restaurant visits in the 12 months ending July 2022. About 4.3 billion of those went to quick service. The group hasn’t exactly lost spending power since...

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Yum! Brands Rides Taco Bell Value Wins, Accelerates Brand Spinoffs 


In a time when many quick-service chains are feeling the strain of a punishing consumer environment, Taco Bell is seemingly stronger than ever. U.S. same-store sales rose 9 percent in the latest quarter, the chain’s best performance in two years. International comps were up 3 percent.


“I know this is a tough operating environment for everybody else in the industry. It’s just probably an environment that favors Taco Bell,” CEO David Gibbs said on Wednesday’s earnings call....

A big lots store with a blue sky in the background

As academics argue over minimum wage impact, business owners say the cost is wearing them down


Controversy continues to swirl around California’s minimum wage requirements with a recent study prompting a counter study from academic circles and business owners doubling down on criticism of the rules as destructive to their industry.


While economist Christopher Thornberg's March 2025 analysis claimed the Fast Act resulted in over 23,100 lost jobs across the industry, a new academic study is challenging those findings and suggesting the law's impact has been minimal...

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Restaurants Fuel Retail Boom with Nearly 3,000 New Openings


A Big Appetite For Dining Out

Restaurants are the leading force behind retail store openings so far this year, comprising almost 40% of the 7,770 announced US retail locations, reports Globe St.


Quick service chains like McDonald’s, Chipotle, Wingstop, and Dutch Bros are among the top contributors to this surge, signaling a robust consumer preference for fast and casual dining options...

A big lots store with a blue sky in the background

Walgreens Is Closing 1,200 Stores – Here’s How to Check If Yours Is on the Shutdown List


Walgreens, one of the nation’s largest pharmacy chains, is set to close 1,200 stores across the U.S. over the next three years. This sweeping move affects about 13% of its total locations and marks one of the biggest pharmacy closures in recent memory.


It’s all part of a broader restructuring strategy aimed at boosting profitability and adapting to shifting consumer habits. Walgreens leadership cited financial pressure and changing market trends as the key reasons behind the decision...

A big lots store with a blue sky in the background

Chicken Salad Chick hits 300 locations as expansion continues


Chicken Salad Chick has reached a new store count milestone.


The fast-casual chicken salad chain opened its 300th restaurant with a new location in Melbourne, Fla., a city on the state’s Atlantic coast. The opening follows robust growth for Chicken Salad Chicken, which opened 37 new locations in 2024, followed by 21 so far in 2025. It plans to open 47 locations in total this year...

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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