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...

A blue building with the word ikea on it.

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 March 20, 2026
Santa Monica Airport Conversion Project Unveiled By City SANTA MONICA, CA — Following a nearly two-year public engagement process, the city has released a draft Framework Diagram for the Santa Monica Airport Conversion Project. "The Framework Diagram brings many ideas together to find common ground about what should go where and what types of uses belong in different areas of the site," the City of Santa Monica explained in a March 11 news release....
By Marc Perlof March 16, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 March 16, 2026 If you own retail real estate, here’s what just changed for you. Retail property owners are asking a simple question today. Is the market about to change? Several economic signals moved quickly over the past two weeks. Oil prices surged as conflict disrupted major energy supply routes. The U.S. job market also weakened unexpectedly during the same period. Financial markets have become more volatile as investors reassess economic risks. When oil prices rise and hiring slows, real estate investors begin adjusting risk assumptions. These adjustments often appear first in lender loan standards and buyer pricing. For retail property owners, these shifts can influence demand and property values. Owners of strip centers, shopping centers, store front retail, and NNN retail properties (multi-tenant and single tenant) should watch closely. Understanding these signals early can help protect property value and guide decisions. Market Analysis and Trends Energy markets reacted first. Brent crude oil recently surged above $100 per barrel. The increase followed conflict disrupting shipping routes and global oil supply.¹ Much of the concern involves the Strait of Hormuz shipping corridor. Roughly 20 percent of global oil supply normally passes through this route. Even small disruptions there can quickly affect shipping costs and supply chains.¹ Consumers often feel the impact through gasoline prices. Since late February, U.S. gasoline prices increased more than 15 percent. Prices reached roughly $3.47 per gallon in early March.¹ In Southern California, fuel prices are usually among the highest nationally. Drivers in the region are already paying significantly more at the pump. Higher fuel costs can quickly strain household budgets. This often reduces spending at restaurants and other nonessential retail businesses. The labor market also signaled caution. The U.S. economy lost about 92,000 jobs in February 2026. Unemployment rose to approximately 4.4 percent during the same period.² Slower hiring typically leads to reduced consumer spending several months later. When advising retail property owners, I track three important property risks. These include tenant margin pressure, lender loan standard changes, and buyer cap rate expectations. Key signals retail property owners should monitor include: Brent crude oil moving above $100 per barrel during Middle East supply disruptions.¹ U.S. gasoline prices rising more than 15% since late February.¹ The U.S. economy losing roughly 92,000 jobs in February while unemployment increased.² Essential Retail vs Nonessential Retail Retail categories respond differently during periods of economic stress. Essential retail includes grocery anchored centers, pharmacies, and daily service tenants. These businesses usually remain stable during economic disruptions. Consumers still need basic goods even when household budgets tighten.³ Nonessential retail categories are more sensitive to economic pressure. Restaurants, entertainment venues, and similar tenants often experience softer sales first. This usually happens when consumers reduce spending. For property owners, tenant mix becomes especially important during economic uncertainty. Centers anchored by essential tenants often remain more stable. Properties dominated by nonessential retail may experience greater sales volatility. Strategic Advice for Retail Property Owners Economic uncertainty is a good time to review several property fundamentals. 1. Review tenant stability Evaluate tenant sales performance, credit strength, and upcoming lease expirations. 2. Monitor capital markets Lenders and investors may begin tightening loan standards as risks increase. 3. Evaluate sale timing carefully Markets sometimes offer short windows before buyer pricing adjusts to new conditions. Even a 1/4% to 1/2% increase in cap rates can affect property values. For example, a $6 million retail property valued at a 6% cap rate generates about $360,000 in annual income. If buyer expectations move to a 6.5% cap rate, value could fall near $5.5 million. If you own retail property and are wondering how these economic signals could affect buyer pricing or cap rates for your asset, this is exactly the type of analysis I help owners evaluate before making a sale or hold decision. If investor cap rates in your market moved just 1/2% higher, how much would the value of your retail property change? Investor Behavior During Uncertain Markets Market volatility often changes how investors evaluate retail properties. Research shows that investors prefer assets with stable income during uncertain periods. Properties with strong tenants and longer lease terms usually attract the most buyer interest.³ Assets with predictable cash flow often perform better during market uncertainty. Properties with weaker tenants or short lease terms may face greater scrutiny. For retail property owners, tenant quality and lease structure matter even more in volatile markets. What This Means for Retail Property Owners Retail property values depend on more than location. Energy prices, employment trends, and capital markets also influence buyer demand. If oil prices stay elevated and hiring slows, investors may become more selective. Properties with weaker tenants or short lease terms may see pricing pressure first. Well located shopping centers with strong tenants and long leases usually remain more resilient. Owners who monitor these signals early often have more strategic options. If economic uncertainty continues over the next twelve months, how strong are the tenants in your retail property? #RetailRealEstate #CommercialRealEstate #NNNProperties #ShoppingCenters #RetailPropertyOwners #CREInvesting #RealEstateInvestors #CREMarketInsights #RealEstateTrends #CaliforniaRealEstate #LosAngelesRealEstate #CapRates
By Marc Perlof March 13, 2026
US consumer inflation steady before Iran conflict drives up oil prices WASHINGTON, March 11 (Reuters) - U.S. consumer prices rose moderately in February as rents maintained a steady pace of increases, though households paid more for gasoline and at the supermarket and higher costs are in store because of the escalating war in the Middle East .  The Consumer Price Index report from the Labor Department on Wednesday, which also showed underlying inflation muted ​last month, covered the period before the U.S. and Israel launched strikes against Iran. The attacks at the end of February were met with retaliation by Tehran and have boosted oil prices...
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