Weekly Perl: A Commercial Real Estate News Recap

Marc Perlof • October 10, 2025
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A Tale of Two Entertainment Zones

When the entertainment zone ordinance was enacted in June, the Oktoberfest celebration on the Promenade was presented as a good opportunity for seeing the legislation’s potential. Though I’ve been somewhat skeptical about the long-term benefits of rescuing downtown via alcohol and cannabis, outdoor drinking and Oktoberfest rituals definitely seemed like a natural fit...

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

Walmart owns two shopping centers. It plans to demolish one.


Juggernaut Walmart is taking an unusual step for a discount chain: owning two shopping centers. But its plans for the properties are quite common among retail landlords: It’s tearing down one of them, a mall, for redevelopment...

A car is parked in front of a sign that says 223

Loan Modifications Surge Amid CRE Refinancing Strain

Commercial real estate lenders are scrambling to mitigate risk as the fallout from higher interest rates continues to ripple across the market, as reported by GlobeSt.

According to the Federal Reserve Bank of St. Louis, the value of modified CRE loans surged to $27.7B in Q2 2025—a 66% increase from a year earlier...

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

Chick-fil-A targets Oregon expansion; Mortgage applications decline; Arrest made in Los Angeles’ Palisades Fire
Chick-fil-A targets Oregon expansion

Chick-fil-A plans to open six new Oregon restaurants by early 2027, taking its total in that state to 20 as part of continued expansion in several regions by the chicken chain.

A company statement said two restaurants were slated to debut this week in Sherwood and Corvallis with future openings planned in Portland, Tigard and Wood Village. The new eateries are expected to create more than 600 jobs.


Bed Bath & Beyond offers franchising to jump-start revival of store fleet


Bed Bath & Beyond is turning to franchising to help drive the expansion of its reborn store fleet.

The Murray, Utah-based company — owner of the Bed Bath & Beyond, Buy Buy Baby and Overstock brands — on Tuesday said it plans to launch a national franchise system, working with local entrepreneurs...

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Importance of bank branches drives Fifth Third purchase of Comerica


Fifth Third Bancorp is purchasing Comerica in the largest bank deal announced this year, an acquisition that shows the importance of retail branches in growing regional deposits.


ï»żBank executives specifically cited the need for more deposits as a factor in the all-stock deal, valued by the banks at $10.9 billion, during a call Monday with analysts. Retail branches are considered one of the best ways for banks to collect deposits and Dallas-based Comerica operates about 355 branches nationwide...

How Barnes & Noble's new chapter relies on real estate

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When a Barnes & Noble opened to a long line of customers in August in a former Staples office supply store in Texas, it didn't have its traditional dark wood and green aesthetic. Instead, the feel was airier: soft Victorian pink walls, light-wood displays and genre-themed rooms with reading nooks as well as play areas catering to local customer preferences...

Big Lots marks return with grand opening celebration across all stores


Big Lots is kicking off its next chapter.


The discounter, which has been reopening stores under its new ownership during the past several months, will hold a grand opening celebration for all its reopened doors on Oct. 30. In the lead-up to the event, Big Lots is offering customers 10% off everything in the store (except prepaid gift cards) from Oct. 2–5...

Cap Rates Shift In Net Lease Restaurant Sector

IHOP

Among national net lease tenants, IHOP stands out as a model of consistency, reports GlobeSt. Properties are trading around an average cap rate of 6.65%, with some deals closing as low as 5%. This reflects the brand’s stable in-store performance and strong national footprint. Modest 5.1% rent bumps every five years also contribute to tighter cap rates. Sales prices hover near $2.3M, indicating reliable investor demand despite rising interest rates...

World Of Flight Opens First US Store In Philadelphia

Retail Playbook In Motion


Nike is working to boost sales and refocus its brand, reports CoStar. The opening of the Jordan World of Flight store in Philadelphia is part of that effort, highlighting a strategy that blends culture, community, and commerce. The retail space will feature premium Jordan apparel and footwear. It will also include experiential elements like co-creation stations and limited product drops, all designed to attract sneaker enthusiasts and loyal fans...

SB 79 Could Add Millions to Your Retail Property. Even If You Never Build

By Marc Perlof • October 6, 2025
Hey Commercial Real Estate Rockstars! In Los Angeles, upzoned sites near transit sold for 20–40% more than similar properties that weren’t near transit.⁎ That price jump is now coming statewide. SB 79 is set to increase the value of any retail or commercial property you own in California that is close to a bus stop or rail station, including tiny strip malls, gas stations, auto shops, and more. This isn't just another Sacramento news story. A statewide law known as SB 79 requires localities to permit more housing close to transit, even if they don't like it. What Makes SB 79 Different? The majority of zoning laws allow communities to decide yes or no. SB 79 takes away their ability to refuse. It establishes the minimal building rights that any city must permit. Consider it this way: It's not a ceiling; it's a floor. More housing may be permitted by cities, but not below the SB 79 minimum. Why Commercial Property Owners Win When developers are aware of what they are permitted to construct, they pay more. Prior to SB 79, city politics determined the value of land. Following SB 79, state law determines the value of land. Don't speculate. Commercial buildings now appear even more appealing because they can serve as both housing and cash flow in the future. Key Benefits for Property Owners SB 79 gives automatic development rights to properties within ½ mile of transit. Cities can add more rules — but they cannot block SB 79’s minimum standards.¹ Many retail sites become perfect for “buy now, collect rent, build later” deals.² Developers will bid based on future building potential — not just cap rate. If you own a strip mall, pad site, auto shop, office, or industrial building near transit, you now have guaranteed development rights backed by state law. Want to know your SB 79 land value, based on buildable square feet, not just rent roll? Want to sell your property as “SB 79 land with income” instead of “tenant-occupied building”? Call or DM me to schedule your SB 79 land value review today. Governor Newsom is expected to sign it any day, timing matters. Do you capture the premium now, or let someone else sell your SB 79 dirt for you? #SB79 #RetailRealEstate #TransitOrientedDevelopment #CaliforniaHousingBill #LandValueBoost

Weekly Perl: A Commercial Real Estate News Recap

By Marc Perlof • October 3, 2025
Japan's Konbini convenience stores coming to the U.S. In Japan, Konbini convenience stores have become part of the country's infrastructure, offering fresh meals delivered several times a day, tickets to concerts and museums, and even services like bill payments. Now the model is coming to the U.S., where critics question whether it will resonate with American customers...

LA Cities in Crisis: How Budget Cuts Put Retail Real Estate Risk Front and Center

By Marc Perlof • September 29, 2025
Hey, Retail Real Estate Rockstars! City deficits are the hidden NOI risk most retail property owners aren’t watching. When cities go broke, service cuts, fee hikes, and tenant stress follow and that hits your bottom line. Let’s take a closer look. Cities Under Pressure Los Angeles faces a $1B deficit for FY 2025–26. Over 1,600 job cuts may slow permitting and inspections¹. Santa Monica declared fiscal distress from $229M in settlement costs ². Expect higher property taxes and fees. Inglewood reports a $24M deficit with small retailers hurt by event-day traffic near SoFi and Intuit Dome³. Beverly Hills looks stable today but is projecting $15–20M annual deficits soon⁎. Long Beach faces a $60.5M five-year shortfall , with permit and inspection fees already rising⁔. Why This Matters When cities are broke, retail property owners feel it: Cuts in police, fire, and street services can lower safety and curb appeal. Higher taxes and fees raise tenant costs, making rent harder to collect. Slower city approvals drag out leasing and redevelopment projects. Struggling small businesses mean more vacancies and turnover. For retail property owners, the real story is what this means for your bottom line. Rising city fees cut into tenant margins, which makes collecting rent harder. Service cuts and safety concerns lower customer traffic, reducing sales and weakening your rent roll. And when NOI drops, property values follow — meaning your asset could trade at a discount if you don’t stay ahead of these shifts. Redevelopment and Highest-and-Best Use If you’re holding property for redevelopment, city budget stress can make the process harder. Expect higher fees, slower approvals, and possible new costs tied to zoning. At the same time, weaker tenants can hurt your interim cash flow. But here’s the opportunity: budget stress can lead to discounted property sales and even city incentive programs. Smart investors who plan for longer timelines and extra costs can still win big. Key Data Points Los Angeles : ~$1 billion projected deficit for FY 2025-26¹. Santa Monica : $229 million settlement liabilities². Long Beach : $60.5 million shortfall over five years⁔. Now is the time to stress-test your leases, evaluate tenant strength, and model rising costs. If you wait until the fee hikes hit, it’s too late. Call or DM me today. Let’s make sure your property is protected and positioned to grow in this shifting market. What do you think, can city budget problems be the hidden risk most retail property owners aren’t watching closely enough? #RetailRealEstate #LosAngelesCRE #PropertyInvestment #CommercialRealEstate #LACounty
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