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.


Read Full Article...

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.


Read Full Article...

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.

 

Read Full Article...

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.

 

Read Full Article...

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.


Read Full Article...

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.


Read Full Article...

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.

 

Read Full Article...

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.

 

Read Full Article...

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.


Read Full Article...

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.


Read Full Article...

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.


Read Full Article...

By Marc Perlof December 15, 2025
By Marc Perlof | MarcRetailGuy December 15, 2025 If you own retail real estate, here is what the newest Federal Reserve move means for your property today. Another ¼ point reduction in interest rates was the result of the Federal Reserve's most recent decision. Jerome Powell highlighted a weakening economy, decreasing inflation, and an obviously cooling labor market in his speech. He pointed out that while services continue to soften at a gradual, steady pace, goods inflation is still sticky due to tariffs. The Fed wants to reduce inflation without overturning the labor market, and employers are cutting down on hiring. Crucially, Powell also stated that policy is already almost neutral and that future decisions will be careful and data-driven rather than instinctive. As the year draws to a conclusion, these signals now influence the actions of regular investors. What does this mean for owners right now? Property values are not increased by rate reductions alone. They accomplish this by lowering uncertainty. Investors resume underwriting as borrowing costs become more predictable. Tours pick up, buyers start modeling offers they passed on a month earlier, and lenders start pricing. Activity nearly always rises first, even if final price has not yet changed. This translates into firmer terms, more talks, and buyers who are now ready to step off the sidelines for active listings. This change is supported by recent economic data. Due to consistent consumer expenditure, services are still growing. As new orders and jobs decline, manufacturing continues to suffer. While the manufacturing PMI is below 50 for the ninth consecutive month, the Institute for Supply Management's (ISM) non-manufacturing Purchasing Managers' Index (PMI) is in expansion territory. The majority of retail tenants reside in the services sector of the economy rather than the goods-producing sector, which makes this division significant. Expect additional momentum for current listings over the following few weeks. Because the US inflation forecast is uncertain, investors continue to underwrite cautiously; yet, direction is important. The direction is getting better for the first time in months. Powell's speech and the national surveys for Q1 and Q2 2026 indicate a two-stage year with a significant warning about future rate decreases. According to the Fed's own estimates, officials anticipate at most one more rate decrease in 2026. Powell emphasized that the Fed is "well positioned to wait" and evaluate new information before taking action. This implies that the market shouldn't anticipate quick or forceful relaxation. • Q1 2026 can seem sluggish. Input prices are still high, hiring is declining, and many companies will postpone plans for growth as they wait to see if inflation continues to decline. Buyers will remain picky as the Fed is probably on hold. • If inflation continues to decline and the Fed implements small, gradual monetary policy changes, Q2 2026 may see a recovery. When paired with more precise policy guidance, even one more cut can increase transaction volume before it increases pricing. Value shopping, food, retail related to everyday necessities, and service-based tenants ought to perform well. Thin-margin businesses and merchants who sell a lot of goods may find it difficult to keep up with growing expenses. Key insights for property owners today: • Services PMI remains in expansion, showing steady consumer demand². • Manufacturing PMI continues to contract, signaling weakness in goods production². • Employers across sectors are slowing hiring, supporting Powell’s cooling labor market comments¹. • Construction and TI costs remain high due to elevated material prices, including steel, electrical components, and aluminum². • Cap rates are unlikely to compress quickly, but clearer Fed guidance helps stabilize valuations. Recent data worth noting: The ISM non-manufacturing index remained above 52 in November 2025², showing healthy service-sector activity tied to consumer spending. Powell's warning that the job market is deteriorating was reinforced when manufacturing employment dropped to one of its lowest levels this year¹. This is the time for owners to get ready. As underwriting becomes more stringent, clean rent rolls, transparent financials, current CAM reconciliations, and compelling tenant narratives become increasingly important. The owners who are ready make the first gains when activity increases before prices change. If you want to understand how today’s economic shift and the Fed’s cautious 2026 outlook impact your value, cash flow, or timing for a sale or refinance, let’s talk. Call or DM me for more information. With the Fed signaling patience in 2026, are you positioned to benefit from higher activity before pricing fully adjusts? #RetailRealEstate #FederalReserve #CREInvestment #EconomicOutlook #MarcRetailGuy
By Marc Perlof December 12, 2025
If the Fed Is Cutting Interest Rates, Why Are 10-Year Treasury Yields Rising? How Does It Affect You? Official interest rates are declining, but not the rates that could matter the most to everyday Americans. Treasury yields ticked up to a three-month high on Wednesday morning despite near certainty on Wall Street that the Federal Reserve was hours away from cutting interest rates. The 10-year Treasury yield, which influences interest rates on a variety of consumer loans including mortgages, rose Wednesday morning to 4.21%, its highest level since early September. Meanwhile, traders put the probability of a quarter-percentage-point cut today by the Fed at about 90%...
By Marc Perlof December 8, 2025
By Marc Perlof | MarcRetailGuy December 8, 2025 If you own retail real estate, here’s what just changed for you. In uncertain markets, retail property owners feel the pressure first. Daily swings in interest rates, consumer confidence, and capital flows make it hard to predict what comes next. The challenge is simple: volatility throws doubt over every decision. The action you take today determines your cash flow tomorrow. And the result can be a stronger, more resilient investment position if you know where to move. Right now, investors are navigating mixed economic signals. Retail sales grew 3.9% year-over-year in Q3, yet borrowing costs remain elevated compared to the pre-2022 cycle¹. Inflation is at a 3.0% annual rate, but pricing remains sticky in service categories². These contradictions create hesitation for many owners. The smart operators don’t freeze. They pivot. They tighten operations, sharpen underwriting, and prepare their assets for the moment clarity returns. Here’s what the most experienced ownership groups are doing: • Stress testing rents, renewals, and expense loads using conservative economic assumptions³ • Re-underwriting tenant credit and evaluating exposure to weaker retail categories • Focusing on assets in trade areas with above-average household income growth³ • Front-loading maintenance and capital planning to preserve NOI predictability • Positioning properties for refinancing when spreads tighten and lenders re-enter the market³ Data points worth watching: Retail vacancy nationwide is hovering around 4.3%-5.8%⁴. Investment sales volume is down 35% year-over-year, but cap rates widened only modestly, showing continued buyer appetite for quality⁴. When markets are noisy, the winners keep discipline. They stay focused on fundamentals that never go out of style: tenant quality, location strength, and consistent reporting. Volatility rewards the prepared, not the passive. If you want clarity on how today’s market impacts the value of your specific property, I can break it down with precision. Call or DM me for more information. What strategic move are you avoiding today that could protect your property’s value tomorrow? #RetailRealEstate #CREInvesting #MarketInsights #NetLease #CommercialProperty
More Posts