Weekly Retail Real Estate News

Marc Perlof • July 28, 2023
Third Street Promenade in Southern California Works to Get Its Mojo Back


In the world of retail, the mantra for success is location, location, location. But that formula hasn’t been working too well for the Third Street Promenade, the breezy seaside pedestrian shopping mall in affluent Santa Monica, California, where a modest home sells for $1.6 million and the average annual household income is $158,000.


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Trader Joe's, Food 4 Less See Visits Increase YoY in California


With nearly 40 million residents, Placer.ai describes the Golden State as a “a high-value grocery market due to its robust visitation.” Since January 2023, year-over-year (YoY) grocery visits have consistently outperformed the national average. From January to June of this year, grocery visits in California have increased 3.1%, 4.5%, 4.2%, 2.3%, 0.1% and 3.8% YoY each month while the grocery sector nationwide has its ups-and-downs in terms of traffic.


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PacWest Bancorp Bought By Banc Of California, A CRE-Heavy Local Rival


Banc of California is swooping in to buy Beverly Hills-based PacWest Bancorp. Post-merger, the combined bank will have about $36B of assets — less than what PacWest alone had at the end of March, Bloomberg reported. It will also have $25.3B in total loans and $30.5B in total deposits, the companies said. Although the Banc of California was the smaller of the two institutions, the new entity will operate under the Banc of California name.

 

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Study: Sales of secondhand goods will hit $325 billion


New research indicates the market for secondhand merchandise is growing rapidly. According to the 2023 Reuse Report from online secondhand marketplace Mercari, the resale market is expected to grow by an estimated 87% to $325 billion by 2031 from $174.1 billion in 2022. Nearly nine in 10 surveyed U.S. consumers planning to shop secondhand in the coming year; and one in three surveyed Gen Z consumers expect to buy more secondhand items and spend more time on online resale platforms.

 

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New pop-up pickleball court coming to the Promenade


Only a blank canvas can be transformed into a work of art and that’s what’s happening on the Third Street Promenade, albeit quite slowly. The latest empty lot to be turned into something really rather interesting is the former site of the Adidas store, 1231 3rd Street (Adidas is now at 1337 3rd St). The 10,000 sq ft space is set to be reworked into an indoor pickleball club, complete with a bar and chill out areas.


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Ashley to ‘refresh’ all stores with new design


Ashley HomeStore has a new name. But that’s not all. The furniture and mattress retailer said it will refresh its stores nationwide to reflect its modernized look and feel. The refresh rollout comes after the company initiated a rebrand last year with a new logo and name change from Ashley HomeStore to Ashley.


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Firehouse Subs Believes Brand Will Resonate ‘Across the World’


If Mike Hancock was going to take an opportunity outside of Tim Hortons, it was going to have to be a rare one. The 6-foot-7 former defensive end, who played in the Canadian Football League with the Toronto Argonauts, had a first-row seat to the near-mythical nature of the coffee chain. There’s one for every 10,000 Canadians, and some 80 percent of residents reportedly visit Tim Hortons every month. That frequency is even higher than McDonald’s in the U.S., where CEO Chris Kempczinski previously suggested roughly 80 percent of the population shows up at least once each year.

 

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Where are online grocery shoppers going?

A new survey has some troubling data for digital grocery retailers. According to first quarter 2023 analysis of more than 58 million shopper baskets of actual purchase data across the U.S. and Europe from SymphonyAI, more than half (52%) of e-commerce grocery shoppers left the online channel over the last year. Further analysis of those lapsed customers reveals that while 60% are reverting to the retailer’s brick-and-mortar location, 40% have left that grocery retailer altogether.

 

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Retail sales inch up in June — but not in all categories


Retail sales edged up in June as consumers continued to shop. Retail sales in June inched up 0.4%  from May and were up 3.3% year-over-year, according to the National Retail Federation, whose calculation excludes automobile dealers, gasoline stations and restaurants to focus on core retail. In May, sales were also up 0.4% month-over-month and were up 4.4% year-over- year.


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Giant Company names president


Ahold Delhaize USA said that John Ruane has been named brand president of The Giant Company. He has served as interim president of the chain since the departure of Nick Bertram in September 2022.

Prior to being appointed interim president, Ruane served as senior VP and chief commercial officer for The Giant Company, leading the merchandising and marketing teams to develop and implement customer-centric strategies that support the continued growth of the brand, while also improving customers’ experience and the overall value proposition, the company said.


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Babies R Us makes a comeback — at American Dream


Just as BuyBuy Baby bid bye-bye to its stores, its longstanding and ardent competitor has itself been reborn.

Babies R Us — which was acquired by brand management firm WHP Global in 2021 —is back in brick-and-mortar, opening a location at American Dream,  the massive three million sq.-ft.-plus entertainment and retail center in the New Jersey Meadowlands.  At 10,000 sq.ft., the new Babies R Us store has a much smaller footprint than the brand inhabited in its previous life.


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By Marc Perlof August 1, 2025
Aldi, Trader Joe’s, and Lidl: Grocery's Power Trio The grocery segment has never been more competitive, and Aldi, Trader Joe’s, and Lidl have consistently emerged as top players. The three chains share similarities: all offer a limited assortment of groceries and tend to operate at lower price points – however, each one is carving out its own distinct path to growth...
By Marc Perlof July 25, 2025
Hey Retail Real Estate Rockstars! Let’s talk about something important that’s happening in California: AB 380 . This new law was created because, after wildfires and disasters earlier this year, some landlords raised rents on small business tenants by up to 300%. Places like cafés, stores, and barbershops were hit hard. People got angry. The government stepped in.¹ AB 380 is a new rule that may stop landlords from raising rent too much during emergencies. It’s not a normal rent control law, but it does limit how much rent can go up when something like a wildfire or pandemic happens. What’s Happening Now? AB 380 already passed the California Assembly. Now it’s going through the State Senate. On July 8, 2025, the bill passed the Senate Public Safety Committee It’s now being reviewed by the Senate Appropriations Committee² After that, it will need to pass a full Senate floor vote The final vote may happen later this summer What Does AB 380 Do? If it becomes law, here’s what it would do: Stop rent increases over 10% during emergencies, like wildfires or floods¹ Apply to small businesses like cafés, hair salons, stores, and laundromats² Block landlords from raising rent to cover repairs during emergencies² Fine landlords up to $25,000 if they break the rule³ Which Tenants Are Protected? AB 380 helps small business tenants during hard times. It applies to: Local cafés, bakeries, and restaurants Retail shops, like phone stores or clothing boutiques Barbershops, dry cleaners, and gyms Doctors and other offices in retail spaces If they’re in a declared emergency zone, and you're negotiating new leases or renewals, the law caps rent increases at 10%—even if the old lease has expired.² Do Big Chains Get Protection Too? Yes, they do. Even if your tenant is a big-name business, like a fast food restaurant, pharmacy, grocery store, or national gym, the rule still applies. That’s because AB 380 covers all commercial tenants, not just small local shops. So if a franchise or national chain signs a lease or gets a rent increase during an emergency, that increase can’t go over 10%. This means landlords have to follow the same rule, whether the tenant is a local business or a major brand.¹ What AB 380 Does Not Do Here’s what the law doesn’t do: It does not create permanent rent control It only limits rent during emergencies After the emergency ends, landlords can raise rent as usual⁴ Already Have a Long Lease? If your lease already includes annual rent increases or CPI adjustments, AB 380 won’t affect it. The rule only applies to new leases or changes made during emergencies. So if your tenant signed a 5-year lease with 3% increases, those terms still count. Just make sure any new deals include rent bumps you can depend on. Wait—Does This Mean Year-Round Rent Control? No. That’s a common misunderstanding. AB 380 is not permanent rent control. It only kicks in during emergencies declared by the state or city. Once the emergency is over, you can go back to market rent, as long as your lease allows it.¹ ² What the Numbers Say Over 5,000 complaints were filed after the 2024 wildfires² Rent overcharges were over $21 million per month in some places⁴ Price gouging complaints rose 52% across California since 2021⁵ A Message for Retail Property Owners AB 380 could change how you do business when disaster strikes. But you still have options. The key is knowing the rules, planning ahead, and protecting your income. If you’re a retail property owner in California, AB 380 could block you from raising rent above 10% — even if your lease expires — during any declared emergency. That means you might miss out on thousands in rent increases unless your leases are written the right way. The smart move? Make sure your leases are crisis-proof so you can stay compliant and still protect your income. Call or DM me for more information. Think About This… If a disaster lasts for months and you can’t raise rent past 10%, how will you protect your cash flow and still stay within the law? #CaliforniaAB380 #PriceGouging #CommercialRentControl #RetailRealEstate #SmallBusinessRights 
By Marc Perlof July 25, 2025
CEO of American Realty Advisors elected to Downtown Santa Monica board Stanley Iezman has been elected to the board of Downtown Santa Monica, Inc. (DTSM), filling the vacant property owner seat left open after the resignation of longtime board member Julia Ladd. The results were announced Thursday by DTSM CEO Andrew Thomas, who praised the caliber of candidates and the level of engagement from the downtown property ownership community...
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