Weekly Retail Real Estate News

Marc Perlof • February 2, 2024
A computer generated image of a building with cars driving underneath it.

Inglewood transit connector project delayed until 2030

 

Another automated people mover project in Los Angeles has run into its fair share of roadblocks. The $2 billion Inglewood Transit Connector Project, which would connect the Metro K Line to Inglewood and provide easier access to venues like SoFi Stadium, Kia Forum and Intuit Dome, has also ran into several delays in its preliminary stages.


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A man in a suit and tie is giving a speech in front of an american flag.

The Fed Declares Interest Rates Have Reached Their Peak

 

Federal Reserve Chairman Jerome Powell declared the end of the current monetary tightening cycle on Wednesday as policymakers decided to hold interest rates steady. "The policy rate is at its peak in this tightening cycle," Powell told reporters after the Fed's policy-making committee's first meeting of the year. 


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A woman is standing in the middle of a clothing store.

Walmart to add more than 150 larger-format stores during next five years


Walmart is moving back into brick-and-mortar expansion.The retail giant said it plans to build or convert more than 150 larger-format stores during the next five years while also continuing its program to remodel existing locations. During the next 12 months, Walmart expects to remodel 650 stores across 47 states and Puerto Rico. 

 

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A man in a suit and tie is standing at a podium giving a speech.

USPS installs EV charging stations, plans 66,000 EVs by 2028

 

The U.S. Postal Service (USPS) is moving forward with plans to deploy one of the nation's largest electric vehicle (EV) fleets. As part of a 106,000-vehicle acquisition plan for deliveries it launched in 2022 (which is included in a larger $40 billion investment strategy to upgrade and improve processing, transportation, and delivery networks), USPS has implemented  its first set of EV charging stations at its South Atlanta sorting and delivery center (S&DC).

 

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A variety of smoothies and desserts are sitting on a colorful table.

South Block and Savory Fund Ink Deal to Bring Açai to the Masses


He first learned about the company when a friend and mentor shared an article with him. The private equity firm built its reputation on investing in emerging quick-service chains, even through COVID. As the founder and leader of South Block, a rising fast casual in the DMV area known for its selection of made-to-order smoothies, açai bowls, toasts, and cold-pressed juices, Mostafavi seemed to fit what Savory typically looks for.


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QDOBA Will No Longer be an ‘Afterthought’ on the National Stage


At 750 restaurants in 45 states, Canada, and Puerto Rico, QDOBA is the No. 2 player in the Mexican fast-casual space. What’s more impressive, according to CEO John Cywinski, is that the brand reached this height while dealing with lackluster ownership. 


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Target’s ‘winning retail format’ includes large — and small — store expansions


Target Corp. is pulling back the curtain on its 2023 new store openings and remodels for a glimpse of what’s to come as the retailer set an ambitious pace moving into 2024.“From more stores to more deliveries, we’ve set an ambitious pace moving into 2024," the company said in a blog post, in which it offered up details about its “winning retail formula.”

 

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An aerial view of a jack in the box restaurant.

Jack in the Box Believes it’s a Challenger, but that’s Changing Soon


With Jack in the Box being the fifth-biggest quick-service burger chain in the U.S. and Del Taco positioned as the second-largest Mexican brand in the space, CEO Darin Harris honestly can’t think of any other chains that have that type of scale and proof of concept, yet still maintain “such tremendous whitespace across the United States for growth.” 


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A white truck is parked in front of the dartmouth mall.

Retailers are finding more of what they want off mall


After decades together, some retailers are redefining their relationships with malls. Stores like Macy's, Dillard's, Belk and J.C Penny have long been seen as pillars of stability for America's indoor shopping malls. But in recent years, those retailers have increasingly been looking and moving-off-malll. The pandemic accelerated

the trend. 


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The front of an aldi store with a blue sky in the background.

Aldi acquisition of Southeastern Grocers moves forward with divestiture of Fresco y Más


Southeastern Grocers Inc. has completed its divestiture of Fresco y Más to Fresco Retail Group, LLC, the company announced Thursday. Southeastern continues ownership and operation of Harveys Supermarket and Winn-Dixie grocery stores. 


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Two women are walking in front of a gas station.

Love’s Travel Stops details 2024 store opening, remodeling plans


Love’s Travel Stops is celebrating its 60th anniversary by continuing to expand its footprint and service offerings. The travel stop and convenience-store retailer plans to add 20 to 25 new locations and update 35 to 40 aging stores and in 2024. It also will completely rebuild four stores in 2024. 


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By Marc Perlof September 12, 2025
Cherished Malibu Seafood Shack The Reel Inn May Rebuild After State Reversal  Malibu’s one-of-a-kind seafood spot, The Reel Inn, may once again serve its signature fish puns and fried and grilled platters on Pacific Coast Highway after the state reversed its earlier position that blocked the restaurant’s return, according to Eater LA...
By Marc Perlof September 8, 2025
Hey, Retail Real Estate Rockstars! The Big Beautiful Bill (H.R. 1) has completely changed the rules for State and Local Taxes (SALT), which is great news for any property owner who has ever cringed when they see their tax bill. For those of you investing in retail real estate, this is the kind of victory that calls for a double espresso and a fresh pro forma. We're talking about actual tax relief in 2025. Let's dissect it. What Just Happened? The SALT deduction cap, once stuck at $10,000 per household, has officially increased to $40,000 for joint filers and $20,000 for single filers — but only between 2025 and 2029. After that, it’s back to the old cap unless Congress re-ups¹. Important Clarification for Property Owners While the IRS frames the new SALT cap in terms of individual filers ($20,000 single / $40,000 joint), the impact depends on how your retail property is owned: LLCs, Partnerships, and S-Corporations (Pass-Throughs): Income, expenses, and property taxes flow through to the owners’ personal returns. The higher SALT cap allows greater deductions here, boosting post-tax cash flow for the individual owners. Trusts & Estates: Similar pass-through treatment, meaning beneficiaries or trustees may capture the benefit depending on structure. C-Corporations: The SALT cap generally doesn’t apply, since corporate taxes are calculated differently and deductions follow corporate rules. REITs (Public or Private): REITs have their own tax regime, but shareholders who receive pass-through income may benefit at the individual level. Direct Individual Ownership: If you hold the property in your own name, property taxes fall directly under the SALT deduction rules. If you live in a high-tax state like California, New York, or New Jersey, this means you can deduct a lot more of your state income, property, and local sales taxes on your federal returns. Why Retail Property Owners Should Care More Deductible Property Taxes You can lower your taxable income on your federal return by deducting a larger portion of your high property taxes on retail assets. Boosts Post-Tax Cash Flow Increased deductions = less tax paid = more cash in your pocket. Offsets Reassessment or NNN CAM Spikes With inflation and property tax reassessments squeezing margins, this SALT cap increase gives you some room to breathe¹. Attractive to High-Income Buyers New investors seeking tax efficiency may find your retail property more alluring if you offer larger deductions. Strategic Planning Window: 2025–2029 These changes expire after 2029, so use this window wisely — structure sales, 1031 exchanges, or renovations when you can best leverage the deduction bump¹. Real Data, Real Impact The original SALT cap from the 2017 Tax Cuts and Jobs Act was projected to cost Californians alone over $12 billion in lost deductions annually². Nearly 30% of households in high-cost areas maxed out the previous SALT deduction limit². What About NNN Leases? Here’s the twist: if your property is on a triple-net (NNN) lease, your tenants — not you — pay the property taxes. For Landlords: The SALT cap change doesn’t directly benefit you, since you aren’t the one writing the property tax check. For Tenants: They may be able to deduct more of those property taxes on their federal returns, depending on how their business or personal tax filings are structured¹. Smart Move: Share this info with your tenants. Suggested Subject Line for Tenant Email: “You May Benefit from New Tax Deduction Rules (H.R. 1)” A simple note saying, “The new federal tax law (H.R. 1) increased the SALT deduction cap for 2025–2029. Since you pay property taxes under your NNN lease, this may be relevant for your tax planning. Please confirm with your CPA.” That small gesture positions you as knowledgeable, supportive, and proactive — which builds goodwill and strengthens tenant relationships. If you’re considering a sale, refinance, or exchange between now and 2029, let’s talk strategy while this deduction window is wide open #RetailRealEstate #CommercialRealEstate #TaxStrategy #SALTdeduction #PropertyOwners
By Marc Perlof September 5, 2025
The Iconic Reel Inn Malibu To Say Goodbye After 36 Years Plans to resurrect The Reel Inn Malibu after the Palisades Fire have been shelved following a decision by the California Department of Parks and Recreation not to renew the restaurant’s lease, as reported by The Wall Street Journal. The move effectively closes a 36-year chapter for the 144-seat seafood shack on Pacific Coast Highway, long recognizable for surfboards on the walls, clever signage, chalkboard menus, and the relaxed Malibu customers...
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