Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • October 24, 2025
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Toys"R"Us opening 10 flagships, 20 seasonal shops — here are all the locations


The brick and mortar comeback of Toys"R"Us  is moving into high gear ahead of the toy industry’s busiest season.


In September, the retailer said that, in partnership with Go! Retail Group, it was planning to open 10 flagships and 20 seasonal holiday shops in the U.S. by year's end...


A blurry picture of a clothing store with clothes on display.

Ikea to relocate plan-and-order storefront to DC from Virginia suburbs

Swedish furniture company Ikea said it will open a plan-and-order location in Washington, D.C.'s Georgetown neighborhood that is a smaller format of the chain’s traditional layout where customers can consult with employees and purchase items for delivery or pickup...

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Leverage Ratio Change Could Unlock Small Bank CRE Lending


A New Push to Free Up Lending


The Trump administration is considering a regulatory change to help small banks lend more. The plan would lower the CBLR from 9% to 8%, as reported by Bisnow.


This would allow small banks to carry more debt and hold less capital, freeing up funds for new loans. That change could significantly boost commercial real estate lending...

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

Culver City backs plan for 20-minute Westside-to-Valley Metro route


Looking to get from the Westside to the Valley in 20 minutes? If Culver City gets its way, Los Angeles Metro will make that a reality.



The city on Wednesday announced its support for Alternatives 4 and 5 for the Sepulveda Transit Corridor, which would connect Sherman Oaks to Santa Monica and Van Nuys to Westwood, respectively, by heavy rail...


Branch Strategy Overhaul BMO Opens 150 Locations

BMO is restructuring its US branch network to focus on high-growth areas, reports Bisnow. It will sell 138 branches to First Citizens Bank while opening 150 new locations. Most new branches will be in California, though some may open in other states...



Five Below to make Pacific Northwest debut — here are the locations


Five Below is expanding its footprint into a new region.



The tween and teen extreme-value retailer will enter the Pacific Northwest, opening eight stores across Washington and Oregon in November. The locations, which span malls to neighborhood shopping centers, are listed at end of article...

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • October 31, 2025
Fed Cuts Rates Again, Boosting Confidence in CRE Recovery In a closely watched decision, the Federal Reserve cut its benchmark interest rate for the second consecutive month. The new target range of 3.75% to 4% reflects continued efforts to ease financial conditions and stabilize capital markets, even as economic signals remain mixed...

Will LA’s $30 Minimum Wage Reshape Retail Real Estate or Just Empty Storefronts?

By Marc Perlof • October 27, 2025
If you own retail real estate, here’s what might change for you. The hospitality workers’ union UNITE HERE Local 11 is pushing a bold new initiative to raise the City of Los Angeles $30 minimum wage for all city employees by July 1, 2028¹. While the first ordinance covered hotel and airport workers, the union’s latest ballot measure would extend this wage citywide². As an expert in retail real estate, here’s what that means for your properties. Higher wages will immediately impact tenant affordability and rent-to-sales ratio calculations that drive lease viability. Many retailers operate with payroll costs at 25 to 35 percent of gross revenue, leaving little cushion for a wage that’s nearly double the current state minimum of $16/hour³. When margins tighten, tenants face a choice: raise prices, cut staff, or negotiate rent. For landlords, that translates into valuation pressure because commercial property values depend on stable rental income. The small business impact in Los Angeles could be profound. Independent restaurants, boutiques, and service operators, the lifeblood of local shopping centers, run on razor-thin profits. If forced to meet a $30 wage, some may relocate to cities like Burbank or Glendale, where municipal wage laws are lower, or close entirely⁴. That shift could spark short-term vacancy spikes and longer lease-up periods. Still, there’s a possible upside. When low-wage workers earn more, they spend more locally. For well-positioned centers with necessity-based tenants: grocers, pharmacies, quick-service restaurants, rising wages could strengthen revenue resilience. Key takeaways for retail landlords: Audit tenant financial health and exposure to rising payroll costs. Review lease clauses that address operating-cost pass-throughs. Model new rent-to-sales thresholds under a $30 wage scenario. Track tenant retention and market-rent shifts across nearby cities. Prepare for valuation adjustments as cap rates reflect greater income volatility. If you own retail real estate in the City of Los Angeles, now’s the time to stress-test your portfolio. Let’s review your leases before this wage shift hits. Call or DM me for more information. When the $30 wage arrives, will higher pay strengthen LA’s consumer base or hollow out the city’s small-business retail core? #LosAngeles30MinimumWage #RetailRealEstateInLosAngeles #TenantAffordabilityAndRentToSalesRatio #SmallBusinessImpactLosAngeles #CommercialPropertyValuesLosAngeles

Own Property Near a Bus Stop? You May Be Sitting on a 40% Value Boost Overnight.

By Marc Perlof • October 20, 2025
If you own commercial real estate within California, here’s what just changed for you. In Los Angeles, properties near transit stations sold for 20–40% more than similar sites that were not near transit.⁴ Now that same price boost is coming to the entire state of California. As of October 10, 2025, SB 79 is now law. It increases the value of any commercial or retail property near a bus stop or train station, even small strip malls, gas stations, auto shops, and old buildings. This is not just another Sacramento update. SB 79 does not “suggest” upzoning, it forces cities to allow more housing near transit, even if they don’t like it. What Makes SB 79 Different? Most zoning rules let cities say “yes or no.” SB 79 removes the “no.” It creates a guaranteed building minimum that every city must follow. It’s not a limit, it’s a baseline. Cities can allow more, but not less. Why Property Owners Win Developers pay more when they know exactly what they are allowed to build. Before SB 79: land value was based on city politics. After SB 79: land value is based on state law. That means your old commercial building can now be worth more, not just for income today, but for building potential tomorrow. SB 79 — Guaranteed Building Rights Near Transit If your property is within ½ mile of a major bus or rail stop, the state now gives you automatic building rights, even if the local zoning says otherwise.⁵ Why This Matters Cities can add rules, but they cannot block SB 79’s minimums.¹ Your strip mall or auto shop could be a “rent now, build later” goldmine.² Developers will bid based on future building rights, not just today’s cap rate. If you own a strip mall, office, auto shop, warehouse, or storefront near transit, you now have state-backed development power. Want to Know Your New SB 79 Value? Do you want to sell your property as “Just another tenant building…” or “State-approved development site with income attached”? Call or DM me for your SB 79 Land Value Review. The law is signed. Timing matters. Do you capture the premium now, or let somebody else flip your SB 79 dirt? #SB79 #RetailRealEstate #TransitOrientedDevelopment #CaliforniaHousingBill #LandValueBoost
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