Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • June 12, 2026
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Inflation tops 4% for the first time in 3 years on spike in gasoline prices


Soaring gasoline prices, triggered by the U.S. war with Iran, have pushed inflation to its highest level in more than three years.

A report from the Labor Department on Wednesday showed consumer prices in May were up 4.2% from a year ago. That's the biggest annual increase since April of 2023. By contrast, the Labor Department says average wages have risen only 3.4% over the last year, so workers' real spending power has declined...

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

The U.S. adds 172,000 jobs. Many are in restaurants, bars and hotels


The labor market is finding its footing.

U.S. employers added jobs for the third month in a row in May, according to a report Friday from the Labor Department. Job gains for March and April were also revised significantly higher.


Restaurants and bars added 48,000 jobs last month in anticipation of strong summer demand, while the overall hospitality industry added 70,000 jobs. Construction companies and local governments were also hiring. Healthcare, which has been a steady source of employment gains, added another 35,000 jobs.


An elevated outdoor view of a modern shopping mall promenade with manicured greenery, palm trees, and pedestrians.

Q226 Burns + CRE Daily Fear and Greed Index


The latest Burns + CRE Daily Fear and Greed Index shows investors remain cautiously optimistic, but transaction activity continues to be constrained by tighter capital markets and economic uncertainty.


Highlights include:

  • The Fear & Greed Index held at 56, signaling a market that remains in expansion mode.
  • 71% of investors kept their CRE exposure unchanged in 2Q26, near a record high.
  • Industrial remained investors’ favorite sector, while office continued to lag...


The American flag waves against a bright blue sky between towering glass skyscrapers, viewed from a low angle.

Black Rock Coffee Bar Adjusts to Life in the Spotlight

Burlington Stores  reported strong, better-than-expected first quarter sales and earnings, and lifted its outlook for the year as consumers continue to seek out value in an uncertain economy.

The off-price retailer continued to grow its footprint during the quarter, with a net increase of 30 stores. For the full year, it now anticipates 115 net new stores for 2026, ahead of its prior guidance for 110...

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SN Super50: Publix sits at No. 2

Despite falling out of a tie for first place in this year’s ACSI, Publix has long cultivated a reputation among consumers for providing a consistently high-level customer experience.

The Lakeland, Fla.-based retailer remains the fastest-growing traditional supermarket company, expanding rapidly beyond its base in Florida. Last year Publix added 42 net new stores, including 16 in its home state and five in Kentucky, its most recent expansion territory...


The main entrance of the NuHAA building, featuring a modern glass and stone facade, at sunset.

7 Brew, Smoothie King top Yelp's 2026 Fastest Growing Brands list


Beverage chains are increasingly gaining interest from consumers on Yelp.

Drive-thru coffee chain 7 Brew is America's fastest growing brand, with 244% year-over-year increase in consumer interest on Yelp (see full list at end of article), according to the online review platform's 2026 Fastest Growing Brands report. The rise in interest comes after the Arkansas-based coffee chain debuted on the Fastest Growing Brands list last year at #23...

A green Publix Food & Pharmacy sign mounted on a white and beige building exterior against a blue sky.

NRF: Retail sales grow again in May

Consumers continue to show their resilience as retail sales rose for the eighth consecutive month in May despite high gas prices and ongoing inflation.

Total retail sales (including restaurants, but excluding automobile dealers and gasoline stations) increased 0.42% month over month and were up 7.19% year over year in May, according to the CNBC/NRF Retail Monitor released by the National Retail Federation. That compared with increases of 0.34% month over month and 5.73% year over year in April...


Two bundt cakes on small plates: one with chocolate drizzle, one with caramel drizzle, with cinnamon sticks nearby.

TPG, Norges, Canadian Pensions Make $2B Grocery Retail Play

Consumers continue to show their resilience as retail sales rose for the eighth consecutive month in May despite high gas prices and ongoing inflation.

Total retail sales (including restaurants, but excluding automobile dealers and gasoline stations) increased 0.42% month over month and were up 7.19% year over year in May, according to the CNBC/NRF Retail Monitor released by the National Retail Federation. That compared with increases of 0.34% month over month and 5.73% year over year in April...


Interior of a casual restaurant featuring blue chairs, red accents, brick walls, and a

Joining retro trend, Pizza Hut looks to revive sales by serving nostalgia


Hungry customers who walk into Pizza Huts run by franchisee Daland Corp. will soon be jolted back to the 1980s, greeted by Tiffany-style lamps under its bright red roofs from 40 years ago.

The goal: Use nostalgia to boost sales and loyalty of baby boomer and Gen-X customers in an era of digital ordering and touch-pad drive-thrus.


At 38 eateries so far, Daland is tweaking its real estate and menus to follow a retro trend tested in U.S. fast-food chains including Taco Bell, KFC and McDonald's. But it's doing so in a slower atmosphere with checkered tablecloths and different cooking styles...

Study: Texas higher than national average for organized retail crime


Texas retailers are facing repeat and organized retail crime at a higher rate than the national average.

The top 10% of retail crime offenders were responsible for more than 71% of recorded retail crime across Texas stores last year, according to newly released data from global retail crime intelligence platform Auror. In contrast, across the U.S., the top 10% of offenders were responsible for more than 66% of the crime...

By Marc Perlof • October 26, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 October 26, 2026 If you own retail real estate, here’s what just changed for you. A lease guaranty can become less useful if the tenant changes entities, the guaranty expires, or a later agreement releases a guarantor. That can affect your income security, refinancing options, and property value. The main owner decision is whether the guaranty still supports your planned hold, refinance, renewal, or sale. Why Should You Review a Lease Guarantee Every Few Years? Many owners review the lease when they buy the property and do not examine the guaranty again until there is a tenant problem or planned sale. During that time, the tenant may be acquired, reorganized, assigned to another entity, or operating under a guaranty that is capped, reduced, or approaching expiration. A review every few years can help you identify those issues while you still have time to respond. Annual Lease Guarantee Review Checklist 1. Confirm the Current Tenant and Every Guarantor Start with the exact legal name of the tenant currently responsible for the lease. Then identify every company or individual that signed a guaranty. Do not rely on the brand name displayed at the property. The company on the sign may not be the legal tenant or the entity supporting the rent. Confirm whether the guaranty comes from the national parent ompany, a subsidiary, an affiliate, a franchise operator, a location-specific LLC, an individual, or more than one guarantor. 2. Check What the Guaranty Covers and When It Ends A signed guaranty may not cover every lease obligation for the entire lease term. Determine whether it is full, capped, reduced over time, limited to certain lease years, or restricted to specific obligations. It may cover base rent but exclude additional rent, property expenses, repair obligations, or legal costs. Compare the guaranty term with the remaining lease term. Do not assume that a lease extension automatically extends the guaranty. 3. Review Later Documents and Ownership Changes The original lease and guaranty may have been changed by later documents. Review amendments, extensions, assignments, assumption agreements, landlord consents, estoppel certificates, ownership change notices, and any guarantor releases or replacements. A tenant may continue using the same brand while the legal tenant, ownership structure, or guarantor changes behind the scenes. When the relationship among the tenant, guarantor, parent company, and affiliates is unclear, request an organizational chart or entity structure. The chart can explain how the companies are connected, but the lease and guaranty documents still determine who is legally responsible. Qualified legal counsel should confirm unclear obligations. 4. Review the Guarantor’s Current Financial Support A guaranty is only as useful as the company or person behind it. Depending on your lease rights and the information available, review current financial information, rent payment history, operating locations, recent closures, ownership changes, and whether the guarantor still appears to own meaningful assets. The goal is not to complete a full credit analysis. It is to determine whether the support behind your rent is still consistent with what you believed when you bought the property or negotiated the lease. 5. Compare the Guaranty with Your Ownership Plan The value of a guaranty depends partly on what you plan to do with the property. If you expect to hold for several years, determine whether the guaranty lasts through your planned ownership period. If you think you are going to refinance, renew, or sell, consider whether the guaranty will still provide meaningful support at that time. You should also consider what happens if the tenant leaves. Contract rent, market rent, vacancy downtime, leasing commissions, tenant improvement costs, repairs, and replacement demand can all affect NOI, capital needs, and net sale proceeds. The central question is whether the guaranty, the underlying real estate, or both support your next major ownership decision. Owner Self Assessment Could you clearly explain who guarantees your largest tenant’s rent, what the guaranty covers, when it ends, and whether it still supports your ownership plan? Reviewing your lease guaranty every few years can help you identify income, financing, vacancy, and value risks before they limit your options. Contact me for the expanded Retail Lease Guarantee Review Checklist . It includes a more detailed document list, guarantor review questions, financial and ownership checks, vacancy and replacement cost considerations, and a one page owner summary you can use before a refinance, renewal, hold, or sale decision. Are you relying on a guaranty that will still provide meaningful support when you refinance, renew the lease, or sell the property? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #NetLease #LeaseGuarantee #CorporateGuarantee #TenantCredit #PropertyValue #RetailInvesting #InvestmentSales #MarcRetailGuy #MarcPerlof
By Marc Perlof • October 23, 2026
How the ‘Walmart effect’ is major warning sign for the American economy Walmart may be the siren before an economic storm - at least that's what one financial expert believes. Economist Jim Paulsen calls his theory the "Walmart Recession Signal" (WRS). When Walmart's stock goes up and shares of luxury companies in the S&P Global Luxury Index go down, it's a sign that the country may be headed for a recession...
By Marc Perlof • October 21, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 October 21, 2026 If you own retail real estate, here’s what just changed for you. As of September 30, 2026, California has passed AB 2418,² a new law aimed at reducing certain delays in commercial plan checks and inspections. For retail property owners, that matters because every extra month a tenant waits for approvals can mean another month before the space opens and starts producing rent. AB 2418 applies statewide, including cities such as Los Angeles, Inglewood, Malibu, Santa Monica and more.¹ What Does AB 2418 Change? For qualifying commercial permit applications, cities and counties must provide an estimated timeframe for determining whether a complete application meets permit standards.¹ The law also creates another option when certain plan checks take too long. An excessive delay generally means the city takes, or says it expects to take, more than 30 business days to complete the first structural building safety plan check after receiving a complete application.¹ If the city returns the plans for corrections, the law also looks at the total review time. If the initial review plus the review of the corrected plans goes beyond 60 days , that can also qualify as an excessive delay.¹ If there is an excessive delay, the applicant can ask the city or county to use a private entity to perform the plan check. If the city cannot provide a qualified outside reviewer, the applicant may be able to hire an approved private professional and pay the cost directly. ¹ That professional must meet the law’s licensing and certification requirements. Does This Apply to Every Retail Tenant? No. This is an important limit. The private plan check portion of AB 2418 applies to qualifying tenant improvements in buildings that are generally: One to three stories No more than 40 feet to an occupied floor Group B Business occupancy Limited to an occupant load of 49 or fewer Not a health facility or public building¹ That means a typical Group M retail store should not assume it qualifies for the private plan check provision. However, AB 2418 includes another rule that can be more relevant to traditional retail. For certain completed commercial projects, local building departments must conduct an inspection within 10 business days after receiving notice that the permitted work is complete. This provision covers several occupancy groups, including Group B and Group M.¹ That could matter when construction is finished but a retail tenant is waiting for an inspection before it can move closer to opening. How Could Delays Affect Your NOI? A signed lease does not necessarily mean the owner is collecting rent. Assume a tenant will pay $10,000 per month once rent commencement occurs. If permitting or inspections push that date back by three months, the owner could have $30,000 of delayed rent, depending on the lease terms. During that period, the owner may still be paying taxes, insurance, utilities, debt service, and other property expenses. This is why permitting should be part of lease underwriting, not something considered only after the lease is signed. Why Should Medical and Dental Owners Pay Attention? Many professional office, medical, and dental uses may fall within Group B occupancy depending on the specific use, building, and patient conditions. That means AB 2418 may be more relevant to certain medical or dental tenant improvements than laws aimed specifically at traditional retailers. But owners should not assume a particular medical or dental project qualifies. The project's architect and local building department should confirm the occupancy classification and eligibility. What Should Retail Property Owners Do? Before signing a lease involving tenant improvements, confirm the property's occupancy classification and expected permit timeline. Review exactly when rent starts under the lease. If commencement depends on permits, construction, opening, or final approvals, delays can shift meaningful income into a later period. For projects that may qualify for AB 2418, ask the tenant's architect and local building department whether the new plan check or inspection rules could apply. The main owner decision is to understand the permitting risk before you agree to the final lease terms. Owner Self Assessment If your next tenant's opening is delayed by 60 or 90 days, how much rent and expense reimbursement would you lose before the property reaches its expected NOI? Final Takeaway AB 2418 may shorten certain commercial plan check and inspection delays, but owners need to understand which parts of the law actually apply to their tenant and property. If you're reviewing a lease, tenant improvement plan, or vacancy where permitting could delay rent, call or DM me. I can help you compare the expected downtime, income, and effect on property value before you make the decision. Sources ¹ California AB 2418 bill text and history ² Governor of California announcement Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #CaliforniaRetailRealEstate #RetailRealEstate #CommercialRealEstate #RetailProperty #AB2418 #RetailLeasing #CommercialPermits #TenantImprovements #PropertyOwners #CaliforniaRealEstate
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