Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • March 6, 2026
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Economic Snapshot: K-shaped Economy Poses Risks for Commercial Real Estate

The latest economic data paints a robust picture of the U.S. economy, with 130,000 jobs added in January and GDP growing at an annual rate of 4.4 percent in the third quarter. Yet this growth was uneven. The data points increasingly to a “K-shaped” economy—one in which higher-income households and capital-intensive sectors continue to grow and spend, while lower-income households face stagnating wages and constrained consumption. This divergence is now responsible for nearly 60 percent of consumer spending...

The front of an aldi store with a sign in front of it.

Abercrombie & Fitch has strong year; to open 30 new stores

Abercrombie & Fitch maintained its momentum in the fourth quarter fueled by another strong performance from Hollister, and marked its 13th consecutive quarter of growth.



The apparel retailer hit a key milestone in 2025, surpassing the $5 billion sales mark for the first time. It also continued to expanding its footprint, growing square footage by 4% year over year. It ended the year with a total of 829 stores...

Modern Raising Cane's restaurant building with a wood-accented exterior, red vertical detail, and an outdoor patio area.

Raising Cane's takes US expansion to the Pacific Northwest 

Raising Cane’s is expanding its fast-food chicken finger concept along the Western U.S. after opening its first restaurant in Seattle last month.



The chicken chain, with headquarters in Baton Rouge, Louisiana, reported a total of more than 950 restaurants in the U.S. and Middle East. It has plans to open a restaurant March 17 in Coeur d'Alene, Idaho, with other locations planned for Washington and Oregon later this year...


Blue Ross Dress for Less sign mounted on the white facade of a retail building under a clear blue sky.

Ross Q4 sales jump, cites ‘very strong start’ to spring season; to open 110 stores


Ross Stores Inc. ended its year on a high note with better-than-expected earnings and sales amid traffic gains, and provided an upbeat outlook.

In the earnings statement, Ross CEO Jim Conroy said the company ended the fourth quarter with solid momentum, and “while early, we are encouraged by the very strong start to the spring season..."

A row of fuel pumps under a long blue canopy at a gas station on a sunny day.

Sunoco extends deal streak with acquisition of New York properties

Sunoco bought 48 gas stations and convenience stores in New York as part of its expansion initiative.

The Sunoco Retail division of Sunoco LP acquired the properties from Capitol Petroleum Group, according to trade publication CSP Daily News, citing a statement from a brokerage that worked on the deal. The brokerage, Petroleum Capital and Real Estate, as well as Sunoco and Capitol Petroleum Group, did not respond to CoStar News' requests for comment...

A Target store entrance with red paneled walls, floor-to-ceiling glass windows, and a large red target logo hanging above.

Target reveals turnaround plan — investing $6B in stores, tech and workers


Target Corp.’s sales slump continued in the fourth quarter amid falling revenue and store traffic even as its adjusted earnings easily topped forecasts.



But the discounter, which is looking to turn things around under new CEO Michael Fiddelke, noted that its sales and traffic accelerated in the last two months of the quarter. Fiddelke, who took the reins on Feb. 1, struck a positive regarding the current quarter...

Modern cafe interior with teal chairs, a terrazzo service counter, and a vibrant, patterned wall featuring the name Crumbl.

Schlotzsky’s Drops Fresh Prototype and Updated Branding 

Schlotzsky’s is going back to where it started, and it’s trying to tackle some very 2020s challenges along the way.


The Austin-born sandwich chain, one of seven brands within the GoTo Foods portfolio, is reclaiming its original “deli” identity and rolling out a next-generation prototype designed to be smaller and cheaper to operate. The new box promises an estimated 20–25 percent reduction in operating costs on paper, plus a tighter footprint capped at about 2,100 square feet and an experience that better matches the food quality the brand believes it already delivers...

A corner view of a Firehouse Subs restaurant with a tan exterior, red tiled roof, and large glass windows.

Here are the restaurants Burger King’s owner is adding. Hint: They’re not Burger Kings.


Restaurant Brands International is looking to fuel its growth by opening 1,800 restaurants a year by 2028, driven by its Popeyes, Firehouse Subs and Tim Hortons chains rather than its banner brand, Burger King.

Miami-based RBI, parent of the lagging quick-service hamburger chain, detailed its expansion strategy during an Investor Day event at its headquarters Thursday. The plan calls for accelerated restaurant openings...


A Floor & Decor store exterior featuring white and gray walls with red signage and a white van parked in front.

Floor & Decor to open 20 stores in 2026; makes Staten Island debut

Floor & Decor Holdings continues its national expansion.



The specialty retailer of hard surface flooring and related accessories for homeowners and professionals plans to open 20 warehouse stores in 2026. The new outposts include Floor & Decor’s second location in New York City, in the borough of Staten Island, which opened its doors in late February...

A large, gray outdoor sign displaying the logo and text

TJX Q4 beats estimate, Q1 off to ‘strong start;' to open 146 new stores


The TJX Companies ended its fiscal year on a strong note, with better-than-expected fourth-quarter earnings and sales and annual revenue that surpassed the $60 billion mark for the first time.



The off-price powerhouse said it’s off to a “strong start" in its first quarter, but offered a softer-than-expected outlook. On the earnings call, TJX executives said the company expects to open 146 net new stores in 2026, which would bring its year-end total to well over 5,300 locations. It also plans to execute more than 540 remodels...

How Buyers Actually Evaluate Your Retail Property

By Marc Perlof • July 20, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 July 20, 2026 If you own retail real estate, here’s what just changed for you. Last week, we looked at why retail properties sit on the market. The main point was simple. Properties usually sit when pricing, positioning, buyer targeting, or risk is not aligned with the market. This week, we are going deeper into the buyer side: how do buyers actually evaluate your retail property? Most sellers think buyers only start with price. They do not. For most retail investment properties, buyers first look at the income. Then they test how safe, durable, and financeable that income really is. That is where risk comes in. A buyer may like the Net Operating Income (NOI) at first glance, but if the leases are short, the tenants are weak, expenses are unclear, or future repairs are likely, the buyer will adjust their return requirement and price. That is why understanding buyer underwriting is so important. Buyers Start with Income, Then Adjust for Risk For most retail investment properties, buyers begin with income. They want to know the current rent, current NOI, whether tenants are paying on time, whether expenses are reimbursed, whether rent increases exist, whether there are vacancies, and whether the rent is above or below market. But income alone is not enough. Buyers want to know how reliable that income is. The cleaner and more consistent the income, the easier it is for buyers to underwrite. The messier or riskier the income, the more conservative buyers become. Buyers Care About Income Quality Not all NOI is equal. A property with $300,000 of NOI from strong tenants, long leases, annual increases, and clean reimbursements is very different from a property with $300,000 of NOI from short term tenants, unclear expense payments, and flat rents. Same NOI. Different quality. Different value. Buyers want to know if the income will last. If they think the income may drop after closing, they may lower their price. Lease Term Matters Lease term is one of the biggest drivers of retail pricing. A buyer will view a 15 year lease very differently from a 2 year lease. Longer lease term usually creates more income certainty. Shorter lease term usually creates more risk. That does not mean short term leases are always bad. Sometimes short term leases create upside if rents are below market. But buyers need to believe the upside is real. If the tenant is weak, the space is hard to lease, or the rent is already above market, short lease term can hurt value. Tenant Quality Matters Retail buyers study the tenant. They want to know whether the tenant is national, regional, franchise, or local. They also want to know whether there is a corporate guarantee, personal guarantee, strong payment history, and healthy business operation. For a single tenant net lease (STNL) property, tenant quality can drive the entire valuation. For a strip center or shopping center, tenant quality affects stability, financing, and buyer confidence. A strong tenant lowers perceived risk. A weak tenant increases perceived risk. Lease Structure Can Change the Price Buyers do not just read the rent amount. They read the lease. Important lease terms include rent increases, option periods, reimbursement language, maintenance obligations, assignment rights, termination rights, cotenancy clauses, exclusive use clauses, Common Area Maintenance (CAM) language, landlord repair obligations, and guaranty language. A lease may look strong on the rent roll, but become weaker once the buyer reviews the actual document. That is where many deals get repriced. Buyers Look at Future Costs Buyers do not only care about today’s income. They care about tomorrow’s expenses. They will review roof life, HVAC systems, parking lot condition, plumbing, electrical, signage, ADA issues, environmental concerns, tenant improvement exposure, leasing commissions, and capital reserves. If a buyer sees $300,000 of near-term repairs, that affects value. Even if the buyer does not ask for a full dollar for dollar credit, they will account for it in the return they need. Financing Drives Buyer Behavior Many owners underestimate how much financing affects pricing. A buyer may like the property, but the lender still has to approve the loan. Lenders usually focus on tenant strength, lease term, NOI, debt service coverage, property condition, borrower strength, market rents, environmental issues, and vacancy risk. If the lender is nervous, the buyer may need to bring in more cash. That lowers the buyer’s return, which often means the buyer needs a lower price. This is why financing conditions directly affect retail property values. Buyers Compare Your Property to Other Options Your property is not evaluated alone. Buyers compare it to other retail properties, but they also compare it to other places they can put their money. They may look at other net lease deals, shopping centers, multifamily, industrial, private lending, Treasuries, money market returns, or simply keeping cash available until a better opportunity appears. Inside retail, they ask whether they can buy a better tenant, better location, longer or shorter lease, stronger rent growth, cleaner financing, or lower repair risk somewhere else. A buyer does not need to buy your property. They need a reason to choose it over the alternatives. If another option offers a better risk adjusted return with less uncertainty, that becomes competition for your sale. Buyers Underwrite the Exit Smart buyers think about resale before they buy. They ask who will buy the property from them later, what the lease term will be then, what cap rate the market may use, what expenses they will incur when they sell the property, whether the tenant will still be there, and whether future buyers will see the same risks. If the exit feels uncertain, the buyer usually lowers the price. That is especially true for properties with short leases, weak tenants, or limited future buyer demand. A Simple Example Assume a retail property has $250,000 of NOI. If buyers view the income as stable and price it at a 6.00% cap rate, the value is about $4,166,667. If buyers see more risk and require a 6.75% cap rate, the value is about $3,703,704. That is a difference of about $462,963. The NOI did not change. The buyer’s view of risk changed. What Owners Should Prepare Before Selling Before going to market, owners should prepare the rent roll, leases, amendments, tenant payment history, expense statements, NNN reconciliation history, service records, roof and HVAC information, insurance costs (declaration page), property tax information, recent repairs, known capital needs, and a clear explanation of upside. This helps reduce buyer uncertainty. Less uncertainty usually means stronger buyer confidence, and stronger confidence can support stronger pricing. The seller’s job before going to market is to remove as many reasons as possible for buyers to discount the property pricing. Final Thought Buyers do not just buy income. They buy income after adjusting for risk. The better your property looks under buyer underwriting, the stronger your position. The weaker or less organized the property looks, the more buyers will discount, delay, retrade, or walk away. Next week, we will close this series with the decision many owners are asking right now: Should You Sell Now or Wait? If you are thinking about selling, refinancing, or holding your retail property, I can help you review the property the way buyers will underwrite it. That includes income, leases, tenant quality, repairs, financing risk, and likely buyer demand. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailInvestment #PropertyOwners #MarketUncertainty #BuyerUnderwriting #RetailPricing #CREStrategy #MarcRetailGuy

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • July 17, 2026
Sales rise in June for ninth straight month amid sales events The summer shopping season got off to a solid start in June as shoppers took advantage of special seasonal sales events by Amazon and other retailers. Core retail sales rose 0.36% month over month in June — and were up 10.08% year over year, according to the CNBC/NRF Retail Monitor, released by the National Retail Federation . That compared with increases of 0.39% month over month and 6.98% year over year in May. (Core retail sales exclude restaurants, auto dealers and gasoline stations...)

Why Retail Properties Sit on the Market

By Marc Perlof • July 13, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 July 13, 2026 If you own retail real estate, here’s what just changed for you. Last week, we discussed how retail property owners choose the right pricing strategy based on asset type, tenant quality, lease structure, location, and buyer pool. This week, we are looking at the other side of that decision: why do some retail properties sit on the market? Most properties do not sit because there are no buyers. They sit because the market does not believe the price, the story, the income, the risk, or the property isn’t being actively marketed. Buyers are not gone. They are selective. If the price, income, lease structure, and risk do not line up, they move on fast. Buyers are active when the deal makes sense. But when pricing and positioning are off, buyers move on quickly or they lowball. The Market Gives Feedback When a retail property sits with little activity, weak offers, or no serious buyer engagement, the market is saying something. It may be saying the price is too high, the income does not support the value, the lease structure is risky, the tenant mix is weak, the property condition is a concern, financing does not work, or the buyer pool is too limited. Owners may not like the feedback, but ignoring it usually makes the problem worse. The longer a property sits, the more leverage shifts to buyers. Pricing Too High Is the Most Common Problem The most obvious reason a property sits is price. But it is not always as simple as saying the asking price is too high. Sometimes the asking price is high because the seller is using the wrong pricing method. They may be pricing based on when the market was at its last peak, a neighbor’s asking price, replacement cost, loan payoff, a past offer, or the number they want for retirement. Those numbers may matter to the owner. They may not matter to the buyer. Buyers are underwriting today’s income, today’s rates, today’s financing, and today’s risk. If the math does not work, they either pass or write a lower offer. Buyers Do Not Pay for Yesterday’s Market A lot of owners still remember the stronger pricing environment from lower interest rate years. That is understandable, but buyers are not pricing retail properties based on the old cost of capital. They are looking at current interest rates, debt service coverage, insurance costs, property taxes, operating expenses, future leasing risk, and exit cap rates. If the buyer cannot make the math work, they usually do not stretch just because the seller wants yesterday’s price. Poor Positioning Can Kill Buyer Interest Some properties are not badly overpriced. They are poorly positioned. That means the marketing does not clearly explain why the property is worth buying. A strip center may have below market rents, but the marketing only shows current income. A redevelopment site may have zoning upside, but the density and entitlement path are unclear or the current pricing metrics are too high based on development costs. A vacant storefront may have owner user potential, but the marketing is written like a passive investment property. Wrong story. Wrong buyer. Weak activity. Sometimes the Process Is the Problem Sometimes the issue is not the property. It is the process. A listing can sit if the broker is only waiting for inbound calls, using the wrong buyer list, failing to explain the upside, or not following up with the buyers most likely to close. Lease Issues Create Buyer Concern Retail buyers pay close attention to lease structure. A property may look good at first, but buyers may lose interest after reviewing the leases. Common problems include short lease terms, no rent increases, below market option periods, weak guarantors, unclear reimbursement language, missing lease amendments, tenant payment issues, and verbal agreements that are not documented. These issues do not always kill a deal, but they usually affect pricing. If the owner prices the property as if there is no lease risk, buyers will push back.  Disorganized Records Create Doubt Buyers do not only evaluate the property. They also evaluate the owner’s records. Tenant estoppels can help confirm lease terms before closing, but they do not replace clean records at the start of the process. If the rent roll, leases, expenses, service records, and tenant files are disorganized, buyers become more cautious before they ever receive the estoppels. They may question whether the income is accurate, whether tenants are paying correctly, whether reimbursements are being collected, and whether future repair issues are being tracked. Disorganization creates doubt. Doubt creates more questions, longer due diligence, and more room for buyers to push on price or terms. Deferred Maintenance Can Reduce Value A property does not have to be perfect to sell, but major physical issues should be understood before going to market. Buyers will look at roof condition, HVAC, parking lot, plumbing, electrical systems, ADA risk, environmental risk, signage, access, and common area condition. If buyers see future costs, they will usually build those costs into their offer. If the seller does not account for that upfront, the deal may stall later. The Wrong Buyer Pool Can Hurt the Sale A good property can sit if it is aimed at the wrong buyer pool. A short term net lease property may not be a fit for passive 1031 buyers. A value add strip center may not be a fit for a buyer who wants clean income. A redevelopment site may not be a fit for a cap rate buyer. A vacant building may not be a fit for a passive investor. The right buyer pool matters. Marketing to everyone often means connecting with no one. What Owners Should Do if the Property Is Sitting If a retail property has been on the market and activity is weak, the owner should review four things. Does the price match buyer underwriting? Not seller hopes. Buyer math. Is the property story clear? The marketing should explain the real reason to buy the property. Are you targeting the right buyers? Net lease buyers, developers, owner-users, syndicators, private investors, and family offices do not all think the same way. Is there deal friction? This could include leases, expenses, records, repairs, tenant issues, financing, or uncertainty. Final Thought A retail property sitting on the market is not always a disaster, but it is always a signal. The owner needs to decide whether to adjust price, improve the story, clean up the records, address property issues, or change the buyer strategy. Doing nothing usually does not create a better outcome. It usually creates more stale market time and more buyer leverage. Next week, we will look at how buyers actually evaluate your retail property and why understanding buyer underwriting can protect value before going to market. If your retail property is sitting, or if you are thinking about selling and want to avoid that problem, I can help you review the pricing, positioning, buyer pool, and deal risks before the market gives you a harder answer. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailInvestment #PropertyOwners #BuyerMarket #RetailPricing #PropertyValuation #CREStrategy #MarcRetailGuy
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