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 May 4, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 May 4, 2026 If you own retail real estate, here’s what just changed for you. Pricing your retail property is not about picking a number. It is about choosing the right strategy to drive buyer demand and maximize your final sale price. If you use the wrong approach, you limit your buyer pool and your outcome. Retail property pricing has become more strategic. Buyers are more selective and move quickly when deals are positioned correctly. Properties that are not positioned well are being ignored. What is causing it? Higher interest rates and rising operating costs have made buyers more disciplined. At the same time, demand still exists for well-located assets, especially in Southern California. This creates a gap. Strong deals get attention. Weakly positioned deals sit. How does pricing affect your property value? Pricing determines how many buyers engage. More buyers create competition. Competition drives stronger offers and higher pricing. If your property attracts only one buyer, that buyer controls the negotiation. If multiple buyers engage, you control the process. How are buyers responding today? Buyers are prioritizing deals that feel well positioned from the start. If pricing creates hesitation, they move on quickly. If pricing creates opportunity, they act. What should you do right now? Start by understanding that pricing is a strategy, not just a number. Different approaches create different outcomes depending on your asset and buyer pool. What should you focus on? Match your pricing approach to your property. A stabilized NNN asset, a strip center with upside, and a redevelopment site should not be brought to market the same way. Buyers are actively pursuing deals that feel correctly positioned and ignoring those that feel priced without strategy. There are several ways to bring a retail property to market, including an exact asking price, pricing guidance, request for offers, submit offers, and off-market sales. Each approach attracts a different buyer mindset and leads to a different outcome. In retail real estate and select commercial opportunities, including development sites, pricing strategy plays a direct role in the final outcome. Pricing controls demand. Demand controls price. In the next three weeks, I will break down how each pricing strategy works and when to use it. Start with “Should You List Your Retail Property With an Asking Price?” (Part 2) , where I explain when pricing helps and when it hurts your result. If you listed your property today, would your pricing strategy attract multiple buyers or just one? Call or DM me for more information. If pricing drives demand, are you using the right strategy for your property? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialProperty #NNN #StripCenters #ShoppingCenters #CRE #LosAngelesRealEstate #InvestmentProperty #PropertyValue
By Marc Perlof May 1, 2026
Fed's Powell says he'll stay on as governor after term as chair ends - as it happened Powell said he'll be staying on the Fed Board of Governors after his term as chair ends in May. He said his choice reflects his concern over a series of legal attacks on the Fed. "I worry that these attacks are battering the institution and putting at risk the thing that really matters to the public, which is the ability to conduct monetary policy without taking into consideration political factors," he said...
By Marc Perlof April 27, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 April 27, 2026 If you own retail real estate, here's what just changed for you. Every warning this year has sounded the same. Oil prices are up. Jobs are slowing. Inflation is high. Cap rates are rising. If you have been paying attention, none of that is new. This is different. Ray Dalio is not warning about a recession. He is warning that the system itself is breaking. That is a bigger problem. And it should change how you think about when to sell. What Dalio Actually Said Ray Dalio runs Bridgewater Associates, one of the biggest hedge funds in the world. In interviews covered by major financial outlets in 2026, he said the U.S. is "very close to a recession." But a recession is not what worries him most. He said something bigger is happening. "We have a breaking down of the monetary order," he said. "We are going to change the monetary order because we cannot spend the amounts of money... We are having profound changes in our domestic order... and we're having profound changes in the world order."¹ He compared today to the 1930s. Not 2008. Not 2001. The 1930s, when tariffs, debt, and countries fighting over power caused a collapse that took over a decade to fix. He has also warned that rising tensions between countries could trigger a "capital war," where money is used as a weapon and the flow of global investment breaks down.² These are not warnings about next quarter. They are warnings about the next era. A Recession You Can Wait Out. This You Cannot. This is the part most retail property owners are missing. A recession is a cycle. It goes down and then it comes back up. Owners who held through 2008, through COVID, through rate hikes know how this works. You cut costs, keep tenants in place, and sell when things recover. That works when the basic system stays intact. What Dalio is describing is different. It is not a dip. It is a shift in how the whole economy is valued. When the U.S. dollar loses strength, when other countries stop buying U.S. debt, when the federal deficit is headed toward $1.9 trillion this year more than double what Dalio says is safe,³ interest rates do not fall the way they do after a normal recession. They stay high, or go higher, because the government needs to keep borrowing. That keeps cap rates up. And it does not fix itself on a normal timeline. In a recession, waiting can be smart. In a reset, waiting is the risk. A recession self-corrects because the Fed can cut rates, credit loosens, and buyers come back. A reset does not self-correct because the government cannot cut rates when it needs to keep borrowing just to stay solvent. What This Means for Your Tenants Not every tenant feels this the same way. Tenants who sell physical goods: clothes, electronics, furniture, home products, are already paying more because of tariffs. Their costs are up and their profits are shrinking. If several of your tenants are in this category, your risk is real if things get worse. Service tenants are more insulated. Food, hair salons, auto repair, medical, and personal services generate most of their income from serving people locally. Yes, some of their supplies are imported and tariffs add cost pressure, but they are not dependent on imported inventory the way a clothing store or electronics retailer is. Their business survives because people need those services every week regardless of global trade conditions. Across Los Angeles and Southern California, these tenants have held up through every major downturn. Know which type of tenants you have. In a reset, that difference matters more than ever. Net lease owners are not off the hook here. A net lease protects you from paying the bills, not from a tenant going under. In a long downturn, even strong tenants can get squeezed. If your tenant closes or restructures, you are left with an empty building in a market where finding a new tenant and selling are both harder than they were two years ago. And lease term matters too. Buyers pay more for properties with long leases remaining. Every year you hold, you burn off term you cannot get back. What This Means for Your Property Value Consumer prices rose 3.3% in the 12 months ending March 2026. Energy costs jumped 10.9%. Gas prices alone went up 21.2% in a single month, the biggest one month jump since records started in 1967.⁴ U.S. employers added just 181,000 jobs in all of 2025. That is an 88% drop from the 1.46 million jobs added in 2024. Hiring picked up a little in March 2026, with 178,000 jobs added, but unemployment is at 4.3%, the highest since 2024.¹ These numbers matter because they make it very hard for the Federal Reserve to cut interest rates. Goldman Sachs expects core inflation to still be at 2.5% by the end of 2026 and sees only one rate cut this year at best.⁵ That means buyers will keep demanding higher returns. Cap rates stay wide. And the math hits hard. If your property brings in $100,000 a year in net income and buyers are pricing it at a 5.5% cap rate, it is worth about $1.82 million. If buyers move to a 6.5% cap rate, an 18% increase in the cap rate, that same income is worth about $1.54 million. That is $280,000 gone, a 15% drop in your dollar property value. No vacancy. No bad tenants. No change in your rent roll. Just an 18% shift in how buyers price risk that wipes out 15% of what your property is worth. In a recession, you can reasonably expect that gap to close when things recover. In a reset, you are betting on a system fixing itself that Dalio says is actively breaking down. In a recession, you can reasonably expect that gap to close when things recover. In a reset, you are betting on a system fixing itself that Dalio says is actively breaking down. What You Should Do Right Now First, look at your tenants. Which ones sell goods and which ones sell services. Which ones are paying below market rent. Below market tenants are likely to stay, but buyers will discount your price because they are taking on the risk of getting rents up to market when those leases expire. In a tight capital environment, buyers want stable income, not a re-leasing project. Second, get a real valuation based on where buyers are today. Not 2022 numbers. Not 2025 numbers. Not what sold nearby 18 months ago. Today's buyers, today's cap rates, today's market. Real Deal Insight Buyers in Southern California retail are pushing cap rates wider and looking harder at tenant credit than at any point in the last two years. Properties with goods based tenants or short leases are taking longer to price and drawing fewer buyers. Necessity retail with long leases are still trading, but only when sellers price it where the market actually is, not where it used to be. The Question You Should Be Asking Right Now Cap rates are moving. Buyer pools are shrinking. Pricing windows close quietly. If you are thinking about selling in the next one to three years, now is the time to find out where you actually stand. Not next quarter. Not after the next Fed meeting. Call or DM me and let's look at your property with today's buyers and today's numbers. Don't let uncertainty make this decision for you. #RetailRealEstate #MarcRetailGuy #CommercialRealEstate #RetailInvestment #SouthernCaliforniaRealEstate #LosAngelesRealEstate #NNNProperties #StripCenters #RetailPropertyOwners #CapRates #CREInvesting #MomAndPopInvestors
More Posts