Weekly Perl: A Commercial Real Estate News Recap
Marc Perlof • July 4, 2025
Popular ice cream brand sold as nationwide chain closes hundreds of locations
WASHINGTON — Rite Aid's bankruptcy proceedings have led to the sale of Thrifty Ice Cream.
Hilrod Holdings was named the successful bidder to acquire the ice cream brand from the nationwide pharmacy chain, according to recently filed court documents. The $19.2 million sale was approved July 1 by a federal bankruptcy judge, court documents show...
Is Wingstop on the Verge of Another Sales Tear?
Not many restaurant chains have surged at the pace of Wingstop. Same-store sales climbed nearly 40 percent over the past two calendars and average-unit volumes ended Q1 at $2.135 million. That latter figure was $1.9 million a year ago, $1.7 million the year before, and $1.6 million in 2022. If you stretch back to 2014—the year before Wingstop went public—AUVs were a shade over $1 million at $1.073 million across 693 restaurants...
Jack in the Box takes poison pill as activist investor increases stake
Jack in the Box Inc. has made a move to defend itself against a potential hostile takeover.
The quick-serve chain has adopted a limited-duration shareholder rights plan, commonly referred to as a poison pill, after Biglari Capital Corp. bought additional shares of stock...
Nordstrom will leave Santa Monica Place in August
Nordstrom has announced it will permanently close its Santa Monica store located at 220 Broadway in Santa Monica Place on August 26, marking the end of operations at one of its Southern California locations despite the company reporting strong fourth quarter earnings that exceeded expectations...
Tacos Por Favor family flips fast food model with first full-service restaurant
After nearly 25 years running fast-casual taco joints across Los Angeles, the family behind Tacos Por Favor has opened their most ambitious location yet: a full-service restaurant and bar in Santa Monica...
Kirkland's Inc. to rebrand; 'move forward' with smaller footprint, store conversions
Kirkland’s Inc. is set to undergo a rebrand and corporate name change – as well as accelerate store conversions into new Beyond portfolio locations...
Mango hits 50 U.S. stores with more on the way
Mango has reached a new milestone in its U.S. expansion.
The Barcelona-based global fashion retailer has opened its 50th U.S. location with its new store in Portland, Ore., in the city's Washington Square shopping center...
Close-out retailer Ollie’s entering two new states; July store openings include…
Ollie’s Bargain Outlet is set for a busy July.
The fast-growing close-out retailer opened its first location in Nebraska, in Omaha, on July 2. The store is located in a space that formerly housed a Big Lots outlet...
Retail sales slowdown does little to dent upward trend for store rents
U.S. retail sales faltered in May as the pull-forward of demand for durable goods and automobiles from the threat of tariffs waned. Headline retail sales fell 0.9% during the month, significantly more than the 0.6% drop expected from consensus estimates. However, most of the decline was driven by just a few retail categories...
By Marc Perlof | @MarcRetailGuy CA #01489206 October 5, 2026 If you own retail real estate, here’s what just changed for you. A national brand on your building does not prove that the national parent company guarantees the rent. If a smaller subsidiary, franchise company, affiliate, or location-specific LLC is actually responsible, buyers and lenders may view your income as less secure and price your property differently. The main decision is simple: verify the legal tenant, every guarantor, and the limits of each guaranty before buying, refinancing, renewing, or selling the property. What Owners Commonly Miss The company operating at your property may use a national name, logo, products, and marketing without the national parent company being responsible for the lease. One location may be leased directly by the parent company. Another location using the same brand may be operated by a subsidiary, regional company, franchisee, or separate LLC formed for that store. To customers, the locations may look identical. Legally, they may provide very different levels of support. A franchisor may approve the location, control operating standards, and receive franchise fees without agreeing to pay the rent. A subsidiary may have a name similar to the parent company without making the parent responsible for its obligations. The phrase “corporate guaranty” can also be misleading. A franchise company or small operating company may be organized as a corporation or LLC, but that does not make its guaranty the same as one from the national parent company. Common guaranty structures include: Parent company guaranty: The national parent company agrees to cover some or all of the tenant’s lease obligations. Subsidiary or affiliate guaranty: A related company provides the guaranty, but the parent may have no direct responsibility. Franchisee guaranty: A franchise operator guarantees the lease. The operator may own one location or hundreds, but it is not the national franchisor. Single purpose LLC or personal guaranty: A location-specific entity or individual provides support that may depend on available assets and the terms of the document. A lease may also have more than one guarantor. For example, a franchise company may guarantee the lease while an affiliate, parent company, or individual provides another layer of support. Each guaranty should be reviewed separately because its scope, duration, and financial strength may differ. Identifying the guarantor is only the first step. A guaranty may be capped, reduced over time, limited to certain lease years, released after an assignment, or restricted to specific obligations. When the relationship among the tenant, guarantor, parent company, and affiliates is unclear, request an organizational chart or entity structure. That can help explain how the companies are connected, but the lease and guaranty documents still determine who is legally responsible. How Can the Guaranty Affect Your Property’s Value? Retail property buyers are purchasing future income. They want to know not only who pays the rent today, but who is responsible if the tenant stops paying. Assume two properties have the same national brand, rent, remaining lease term, and similar real estate. One lease is guaranteed by the national parent company. The other is supported only by a location specific LLC with limited assets. Buyers may not value those income streams the same way. If buyers see greater tenant credit risk, they may request financial statements, require a higher return, reduce their offer, or place more weight on the underlying real estate and replacement tenant demand. Lenders may also ask more questions or offer less favorable financing. A weaker guaranty does not automatically make the property a poor investment. Location, contract rent, lease term, building condition, and the cost of replacing the tenant still matter. The risk is that an owner may price the property as though national credit supports the rent when the national parent company never accepted that obligation. Discovering the difference during due diligence can weaken the owner’s negotiating leverage and create the risk of a price reduction. What Should Retail Property Owners Do Now? First, review the complete lease file. Do not rely only on an offering memorandum, lease summary, tenant logo, or the way someone described the guaranty when the property was purchased. Create a written record identifying: The exact legal tenant Every guarantor The relationship between the tenant, guarantors, and national brand What each guaranty covers Whether each guaranty is full, capped, limited, reduced, or temporary Whether amendments, assignments, or extensions changed the original protection If the entity relationships or guaranty language are unclear, request the organizational structure and have qualified legal counsel confirm who is responsible. The decision should be based on the documents and financial strength of the obligated entities, not the brand name alone. Understanding this before a refinance, renewal, or sale gives you time to address missing documents, explain the lease accurately, and prepare for buyer or lender questions. Owner Self Assessment If a buyer reviewed your lease today, could you identify the exact tenant, every guarantor, what each guaranty covers, and when any limits or releases apply? In next week’s blog, “What Happens to Your Lease Guarantee When the Tenant Changes Ownership?” , I’ll explain why a corporate acquisition or private equity purchase does not automatically make the new owner responsible for the lease. Final Takeaway A national brand may attract buyers, but your property’s income is only supported by the legal entities that actually signed the lease and guaranty. If you are unsure who stands behind your retail lease, call or DM me. I can help you review how the tenant structure and guaranty may affect buyer underwriting, property value, and your next refinance, renewal, or sale decision. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #NetLease #LeaseGuarantee #CorporateGuarantee #TenantCredit #RetailInvesting #InvestmentProperty #MarcRetailGuy #MarcPerlof
The 2026 QSR® Drive-Thru Report For years, a 5% yield on the Treasury looked like a relic from another interest-rate era—where borrowers faced soaring loan rates. Now it's back, capping a six-year surge from pandemic-era lows near 0.5%. The benchmark yield crossed 5% this month for the first time since 2007, but this appears different than the eve of the Great Recession: the Fed is staring down a lose-lose situation combining high inflation and weak economic growth, a catch 22 that economists termed "stagflation" in the 1970s and long feared through the 10-year's climb upward since the pandemic...
By Marc Perlof | @MarcRetailGuy CA #01489206 September 28, 2026 If you own retail real estate, here’s what just changed for you. Americans with Disabilities Act (ADA) risk is not just a legal issue. It can become a pricing issue, a leasing issue, a buyer confidence issue, and a closing issue. For California retail property owners, accessibility concerns can affect value because buyers, tenants, lenders, and attorneys do not only look at income. They also look at risk. If that risk is unclear, they may ask for credits, repairs, holdbacks, price reductions, or stronger lease protections. That is the real “so what” for the owner. ADA issues do not always destroy value. But unmanaged ADA risk can reduce leverage. Reduced leverage can reduce value. Why ADA Risk Becomes a Value Issue Retail property value is usually based on income, lease quality, tenant strength, location, condition, and risk. ADA risk fits into several of those categories. If a property has unresolved accessibility issues, the buyer may not know the true cost. The issue may be small. It may be large. It may involve the tenant. It may involve common areas. It may require permits. It may delay leasing. It may create future claims. When buyers do not know the answer, they usually protect themselves. That protection may come in the form of a lower offer, a repair credit, a price reduction, an escrow holdback, a longer due diligence period, or stronger seller representations. That is how ADA risk moves from a legal issue to a value issue. The cost of the repair may be one number. The buyer’s fear may be a much larger number. How Buyer Uncertainty Can Reduce Price Buyers do not like unknown problems. A buyer may accept a known issue if the cost is clear and the path forward is reasonable. For example, if an accessibility repair is estimated at $20,000, the buyer and seller can discuss that number directly. But if the buyer sees unresolved ADA concerns with no report, no plan, no cost estimate, and no explanation, the buyer may assume the issue is worse. That can hurt the seller. A $20,000 issue can become a $75,000 pricing discussion if the buyer believes there may be hidden risk, future claims, tenant disputes, or closing delays. This does not mean every buyer is right. It means uncertainty gives the buyer leverage. The seller’s job is to reduce uncertainty before the buyer uses it. How ADA Risk Can Affect NOI ADA risk can affect NOI when it changes the economics of a lease or ownership decision. If a tenant requests landlord work, more tenant improvement money, free rent, rent reduction, delayed rent commencement, or repair obligations because of accessibility concerns, the financial impact may show up in the income stream. Lower income can mean lower value. For example, if an owner gives extra free rent or absorbs improvement costs to address accessibility issues, that cost may not appear as a simple repair line item. It may show up as reduced NOI, lower effective rent, or weaker lease economics. That matters because buyers underwrite actual income, future income, and risk. An ADA issue that affects lease terms can affect value even if there is no lawsuit. How ADA Risk Can Affect Leasing ADA risk can also affect tenant negotiations. Restaurants, medical tenants, dental tenants, franchise operators, service tenants, fitness users, coffee shops, and other public facing tenants may care about access before they open. They may review parking, paths of travel, entrances, restrooms, counters, seating areas, signage, and common areas. If the tenant sees a problem, the tenant may ask the landlord to solve it before rent starts. That may lead to landlord work, more TI money, free rent, lease contingencies, delayed opening, or stronger tenant protections. This does not mean the owner should reject the tenant. It means the owner should understand the issue before negotiating. When the owner understands the risk, the owner can decide what is reasonable, what is the tenant’s responsibility, what belongs to the landlord, and what should be addressed in the lease. When the owner does not understand the risk, the tenant may control the conversation. How ADA Risk Can Affect a Sale ADA risk can show up quickly during a sale. A buyer may review leases, property condition, prior claims, CASp reports, settlement history, repair records, tenant complaints, and disclosure materials. If the buyer sees an unresolved issue, the buyer may pause. That pause can become expensive. The buyer may ask for more due diligence time. The lender may ask questions. The buyer’s attorney may request more documents. The buyer may ask for a price credit or holdback. The seller may lose momentum. This is why sellers should not wait until escrow to understand obvious accessibility issues. If an owner plans to sell, the owner should evaluate the property early enough to understand what may come up. The owner does not need to promise perfection. But the owner should know the facts. A seller with facts has more control. A seller without facts gets negotiated against. How Disclosure and Documentation Matter Documentation matters because buyers want to know what happened, what was corrected, and what remains. If there was an ADA claim, settlement, CASp report, or repair plan, the owner should speak with counsel about what should be disclosed and how it should be presented. This is not something owners should handle casually. Poor communication can create more problems. Overstating compliance can create risk. Hiding known issues can create risk. Sharing reports without context can create risk. The better approach is controlled disclosure with proper legal guidance. The owner should understand the facts, the lease responsibilities, the completed repairs, the remaining issues, and the plan before responding to buyers, tenants, lenders, or attorneys. What Retail Property Owners Should Do Before Selling or Leasing Retail owners should prepare before the issue becomes leverage. Review the customer facing parts of the property. Parking, access aisles, signage, entrances, paths of travel, restrooms, counters, and common areas are often important. Review the lease. Understand what belongs to the landlord, what belongs to the tenant, and what may be shared. Consider whether a CASp review or accessibility review makes sense before a sale, refinance, major lease negotiation, or tenant turnover. Speak with an ADA attorney before ordering reports, making written statements, sharing information, or starting repairs. Create a plan. The plan may include repairs, budgeting, tenant coordination, lease language, disclosure strategy, or timing decisions. The goal is not to eliminate every possible risk. The goal is to reduce surprises and protect leverage. Common Questions Retail Owners Ask Can ADA issues lower the value of a retail property? Yes. ADA issues can lower value if they create repair costs, buyer uncertainty, tenant demands, sale delays, credits, or price reductions. Is the repair cost the only value impact? No. The bigger impact may come from uncertainty, lost leverage, weaker lease economics, or buyer fear. Should owners fix every issue before selling? Not always. Owners should get legal and accessibility guidance, understand the cost, and decide whether to repair, disclose, budget, or negotiate around the issue. Final Thought ADA risk affects value when it creates uncertainty. For retail property owners, the issue is not only whether the property has accessibility concerns. The issue is whether the owner understands them before a tenant, buyer, lender, plaintiff, or attorney uses them as leverage. Known risk can be managed. Unknown risk usually gets priced against the owner. That is why ADA risk should be part of an owner’s leasing, sale, and value strategy. If the owner understands the issue early, the owner can plan, budget, negotiate, disclose, repair, or price the risk with more control. If the owner waits, someone else may control the conversation. If you are planning to sell, lease, refinance, or deal with an ADA issue, review it before it becomes leverage against you. This concludes the ADA Risk and Retail Property Value series. Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #CaliforniaRealEstate #RetailPropertyOwners #ADACompliance #CASp #PropertyValue #CommercialProperty #MarcRetailGuy
