Weekly Retail Real Estate News

Marc Perlof • May 5, 2023
Fed's Anticipated .25% Rate Hike Ushers in New Opportunities


On May 3, 2023, the Federal Reserve raised its benchmark interest rate by a much-anticipated 0.25%, presenting a plethora of new opportunities and challenges for the retail real estate industry. In this blog article, we'll examine how this rate hike effects cap rates and property values while also exploring potential future situations. We'll explore the prospective effects on retail real estate values and cap rates for the remainder of 2023 and into 2024, taking into account the impact of inflation and unemployment patterns, regardless of whether the Fed decides to pause or continue raising rates.


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Olive Garden Parent Darden to Acquire Ruth’s Chris in $715M Deal


Olive Garden parent Darden Restaurants Inc. has entered into an agreement to acquire the 154-unit Ruth's Hospitality Group Inc. in a deal valued at about $715 million, the companies said Wednesday. Orlando, Fla.-based Darden, which also owns the LongHorn Steakhouse and Cheddar’s Scratch Kitchen brands among others, said it will commence a tender offer of $21.50 a share for Ruth’s shares in an all-cash transaction. Fine-dining steakhouse Ruth’s Chris is based in Winter Park, Fla.


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4 Sandwich Chains Attempting To Make a Comeback


Many people lean on sandwiches as a healthier option in the world of fast food, and others enjoy the convenience of a good meal on the go when they're tight on time and money. But while some of the big sandwich chains have been able to weather inflation and lingering COVID-related setbacks, like Jersey Mike's, others, like Subway and Potbelly, have faced store closures and loss of revenue. A few other famous brands are still attempting to make recover and resurge from massive drops in foot traffic, economic pressures, and customers' food quality preferences.


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Inglewood Transit Connector Secures Additional $100M Towards Construction Costs


In a show of unanimous support for the Inglewood Transit Connector (ITC) project, the South Bay Cities Council of Governments (SBCCOG) voted yesterday to re-prioritize over $100 million originally allocated to fund a proposed Centinela grade separation project, to instead serve as “backstop” or reserve funding, for the ITC.


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Hinano Cafe Celebrates 60 Years in Venice Beach


In the ever changing landscape of Los Angeles, locals in Venice Beach have found a second home at Hinano Cafe, a local bar celebrating 60 years of being, what owner Mark Van Gessel calls “the Cheers of Venice.” “At Hinano somehow all the different issues seem to disappear,” Van Gessel said. “Young or old, straight, gay, [or] other preference, all ethnicities; everyone gets along.  It's a really great feeling to see all the different barriers disappear and people just get along.”


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Duck Donuts Races Ahead, Ready For Its Next Act


Betsy Hamm heard through a friend Duck Donuts was moving its headquarters to Mechanicsburg, Pennsylvania, and searching for a marketing leader. What she wasn’t familiar with, though, was the brand itself. The population last year of its origin town—Duck, North Carolina—was 782 full-time residents. The Outer Banks vacation spot, which sees that number climb over 20,000 during peak season, is the 11,252th largest city in America. But Duck Donuts knows how to leave an impression. Hamm, a Pennsylvania native with 15 years at Hershey Entertainment & Resorts on her resume, texted a couple of confidants who had visited the concept’s day one store on the Sound side of the sandbar island.


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Most Popular Grocery Chain in US States


With a rising number of grocers sprouting up, chains have been devising unique tactics to stay ahead. A recent report from Placer.ai, a location analytics and foot traffic data company, identified the most-favored grocery stores in states across the country. Kroger, one of the nation’s retail powerhouses, was the most popular grocery store in six states across the Midwest and South, including Ohio where local shoppers visited the chain 42% of the time in March, the most recent data available, while customers in Indiana were also found to prefer Kroger over other grocers, with visit shares of 34%. Mississippi shoppers visited 43% of the time, and the rate in Tennessee was 35%. In Kentucky and West Virginia, Kroger was also crowned the top grocery chain, with visit shares of 59% and 51%.


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Ikea's Plans To Open In Ontario Run Into Zoning Snag

Plans that have been in the works since 2019 to bring an Ikea to Ontario, California, have stalled. The home furnishings giant had originally planned a retail location but decided to instead develop a distribution center after the pandemic began. But the city of Ontario shut that idea down, the Inland Valley Daily Bulletin reported this week.


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Cannabis Industry Prefers Property Leasing Over Purchasing, Survey Says


The legalized cannabis industry appears to be moving more rapidly toward leasing property as opposed to buying it as new states open up for sales, creating more competition. A decline in cannabis prices that began last summer caused the industry to rethink its property needs. The National Association of Realtors has observed the direct effects on multiple facets of real estate, according to the trade group, which surveyed its members in March and released a report last week.


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This Analyst Believes Banks Will Extend CRE Loans As Maturities Come Due


No one is quite sure what will happen when the wave of CRE loan maturities start to come due this year and into the next few.  Aaron Jodka, Colliers’ research director of U.S. Capital Markets, has his theories though. He believes that banks and other lenders may be willing to renew or extend loans for the coming wave of maturities coming due as long as they meet coverage ratios. He also believes, according to a post he wrote, that borrowers who had interest rate swaps should be able to work with lenders on rate buydowns.


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National Landing's Retailers Are Counting On Strong Foot Traffic. Can Amazon Deliver?


As Amazon prepares to unveil the first new buildings of its HQ2 campus this summer — a pair of towers totaling 2.1M SF of office space — the tech giant and its development partner are adding a huge roster of retailers and restaurants to the area. The key question for the neighborhood now becomes: Will there be a big enough boost in foot traffic to support those businesses?


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Mall Owners Face Loss of Bed Bath & Beyond, Franklin BSP Recoups Hotel Loan, Cleveland Hotel Refinances After Canceled Sale


Mall Owners Face Loss of Bed Bath & Beyond: Landlords with commercial mortage-backed securities loans on more than 120 U.S. shopping malls have exposure to Bed Bath & Beyond, which filed for bankruptcy protection as its looks for buyers, according to bond-rating firm DBRS Morningstar. Those borrowers are holding loans on properties with balances of more than $5.33 billion and many are now facing the loss of one of their largest tenants. Collectively, the malls are appraised at nearly $10 billion.


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By Marc Perlof • November 2, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 November 2, 2026 If you own retail real estate, here’s what just changed for you. One of the biggest risks to a retail property is not always one owner making a bad decision. It is multiple owners failing to make a decision at all. When family members, business partners, or other co-owners delay action, the cost can show up through lost income, higher expenses, missed opportunities, weaker financing, or a lower sale price. Retail properties are often owned by siblings, spouses, business partners, LLC members, family offices, trusts, or investment groups. Each owner may have a different financial goal, timeline, and tolerance for risk. Disagreement is normal. The larger problem is having no clear process for turning disagreement into a decision. Even if you own the property by yourself today, these same decisions often become the responsibility of a spouse, children, successor trustee, or other heirs in the future. A clear decision process today can help prevent confusion later. What Do Multiple Owners Commonly Miss? Many ownership groups assume waiting is the safest choice when they cannot agree. They delay a lease decision, postpone repairs, wait to refinance, or hold off on selling until everyone feels comfortable. That may reduce conflict in the moment, but it does not stop the property from changing. Leases move closer to expiration. Deferred maintenance grows. Financing terms and buyer demand can change. Waiting may feel neutral, but its financial effect rarely is. Good properties are often held back by poor decision processes, not poor real estate. The issue becomes harder when each owner defines success differently. One partner may want monthly income. Another may want to sell and reinvest. One sibling may want to keep the property because it has been in the family for decades, while another may need cash for retirement or other obligations. None of these goals are automatically wrong. The ownership group still needs to decide which goal should guide the property’s current strategy. Why Do Ownership Groups Delay Important Decisions? Experience does not remove emotion, fear, or personal pressure. An owner may understand leasing and property values but still resist a sale because the property belonged to a parent. Another may reject a reasonable lease because the proposed rent is below what the space achieved years earlier. Another common reason for delay is the belief that retail property values will continue increasing over time. Many properties have appreciated over long periods, but that does not automatically make waiting the best financial decision. While ownership waits, leases age, capital needs grow, financing changes, and buyer demand shifts. A property’s future value depends on much more than appreciation alone. The better question is not, “Will this property be worth more someday?” It is, “Will waiting create a better overall financial result than acting today?” Owners may also delay because they want to avoid regret. They worry that selling now could mean missing a higher price later, or that completing an improvement could waste money. That fear can cause repeated delays while income, expenses, tenant risk, and market conditions continue to change. The goal is not to make a perfect decision. It is to make the best available decision based on the property’s current income, condition, financing, leases, marketability, and ownership objectives. How Can Indecision Affect Property Value? Property value is tied closely to income, risk, and buyer confidence. If ownership delays a lease renewal, buyers may underwrite more vacancy risk. If repairs are postponed, buyers may reduce pricing for future capital costs. If owners cannot agree on a sale strategy, the property may remain exposed to tenant rollover, changing financing conditions, or new competition. Indecision can also weaken negotiations. A tenant may recognize that the owners are not aligned. A buyer may question whether the group can approve terms, respond to due diligence, or close on schedule. A lender may require clear authority before moving forward with refinancing. The cost may not appear as one large loss. It often shows up through additional vacancy, higher repair costs, reduced leverage, lost rent, or a weaker offer. Over time, those smaller consequences can materially reduce value. What Should the Ownership Group Decide First? The first decision is not whether to sell, refinance, lease, improve, or hold. It is agreeing on the ownership group’s primary objective. Is the priority current cash flow, long term appreciation, preserving the property for the next generation, reducing risk, or preparing for a sale within a defined period? Once that objective is clear, the group can compare each option using the same standard. A lease proposal can be measured by its effect on NOI, flexibility, and value. A capital improvement can be evaluated based on cost, expected rent, tenant demand, and sale impact. A sale can be reviewed based on net proceeds, taxes, timing, and reinvestment options. Without a shared objective, every discussion becomes a debate over personal preferences. With a shared objective, the group can focus on what best supports the investment. Real Deal Insight I recently advised a family that owned a retail property through multiple siblings. One wanted to sell, another wanted to continue collecting income, and another wanted to wait because they believed the property’s value would continue increasing. Before discussing pricing or marketing, I helped the ownership group compare the financial consequences of each option, including projected income, future capital needs, lease rollover, holding costs, and the risks of delay. Once everyone reviewed the same information, the discussion shifted from individual opinions to the property’s investment objectives. That allowed the group to make an informed decision based on facts instead of assumptions. Strategic Advice for Retail Property Owners If your property has multiple owners, start by defining the group’s main investment objective and expected holding period. Each owner should understand whether the current goal is income, growth, preservation, redevelopment, refinancing, or sale. Then decide how major property decisions will be reviewed. The group should know who gathers the information, who has authority, what requires a vote, and how long the group has to respond. Governance and legal issues should be reviewed with the appropriate attorney, CPA, or other licensed advisor. The goal is not more meetings. It is a process that allows the group to decide before delay limits the available options. Owner Self-Assessment If your ownership group had to decide today whether to renew a major tenant, complete a capital improvement, refinance, or sell, would every owner agree on the property’s main objective and how the decision should be made? Final Takeaway Multiple owners do not need to agree on everything, but they need a clear process for making decisions before delay reduces income, options, or value. In next week’s blog, “The Hidden Cost of Waiting: How Decision Delays Reduce Property Value,” I will explain how indecision can affect lease negotiations, repairs, financing, buyer interest, and property value. If your retail property has multiple owners, I can help your group compare the financial impact of holding, leasing, improving, refinancing, or selling before indecision limits the available choices. The quality of a retail property’s decisions often depends less on the property itself and more on the process the owners use to make those decisions. Is your ownership group protecting the property by waiting, or is waiting quietly becoming the most expensive decision? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #PropertyOwners #FamilyPartnership #BusinessPartners #FamilyOffice #InvestmentProperty #ShoppingCenters #MarcRetailGuy
By Marc Perlof • October 30, 2026
Tractor Supply Q3 sales rise 5.1%; to moderate new store openings Tractor Supply Company delivered third-quarter earnings and sales that beat analyst expectations and said it was gaining share against most categories and metrics even as its customers remain cautious. On the company’s earnings call, CEO Hal Lawton said that elevated interest rates and reduced housing mobility are weighing on property improvements and larger projects. Pet ownership headwinds, particularly new pet acquisition, continue to affect demand in certain categories...
By Marc Perlof • October 28, 2026
By Marc Perlof | @MarcRetailGuy CA #01489206 October 26, 2026 If you own retail real estate, here’s what just changed for you. A lease guaranty can become less useful if the tenant changes entities, the guaranty expires, or a later agreement releases a guarantor. That can affect your income security, refinancing options, and property value. The main owner decision is whether the guaranty still supports your planned hold, refinance, renewal, or sale. Why Should You Review a Lease Guarantee Every Few Years? Many owners review the lease when they buy the property and do not examine the guaranty again until there is a tenant problem or planned sale. During that time, the tenant may be acquired, reorganized, assigned to another entity, or operating under a guaranty that is capped, reduced, or approaching expiration. A review every few years can help you identify those issues while you still have time to respond. Annual Lease Guarantee Review Checklist 1. Confirm the Current Tenant and Every Guarantor Start with the exact legal name of the tenant currently responsible for the lease. Then identify every company or individual that signed a guaranty. Do not rely on the brand name displayed at the property. The company on the sign may not be the legal tenant or the entity supporting the rent. Confirm whether the guaranty comes from the national parent ompany, a subsidiary, an affiliate, a franchise operator, a location-specific LLC, an individual, or more than one guarantor. 2. Check What the Guaranty Covers and When It Ends A signed guaranty may not cover every lease obligation for the entire lease term. Determine whether it is full, capped, reduced over time, limited to certain lease years, or restricted to specific obligations. It may cover base rent but exclude additional rent, property expenses, repair obligations, or legal costs. Compare the guaranty term with the remaining lease term. Do not assume that a lease extension automatically extends the guaranty. 3. Review Later Documents and Ownership Changes The original lease and guaranty may have been changed by later documents. Review amendments, extensions, assignments, assumption agreements, landlord consents, estoppel certificates, ownership change notices, and any guarantor releases or replacements. A tenant may continue using the same brand while the legal tenant, ownership structure, or guarantor changes behind the scenes. When the relationship among the tenant, guarantor, parent company, and affiliates is unclear, request an organizational chart or entity structure. The chart can explain how the companies are connected, but the lease and guaranty documents still determine who is legally responsible. Qualified legal counsel should confirm unclear obligations. 4. Review the Guarantor’s Current Financial Support A guaranty is only as useful as the company or person behind it. Depending on your lease rights and the information available, review current financial information, rent payment history, operating locations, recent closures, ownership changes, and whether the guarantor still appears to own meaningful assets. The goal is not to complete a full credit analysis. It is to determine whether the support behind your rent is still consistent with what you believed when you bought the property or negotiated the lease. 5. Compare the Guaranty with Your Ownership Plan The value of a guaranty depends partly on what you plan to do with the property. If you expect to hold for several years, determine whether the guaranty lasts through your planned ownership period. If you think you are going to refinance, renew, or sell, consider whether the guaranty will still provide meaningful support at that time. You should also consider what happens if the tenant leaves. Contract rent, market rent, vacancy downtime, leasing commissions, tenant improvement costs, repairs, and replacement demand can all affect NOI, capital needs, and net sale proceeds. The central question is whether the guaranty, the underlying real estate, or both support your next major ownership decision. Owner Self Assessment Could you clearly explain who guarantees your largest tenant’s rent, what the guaranty covers, when it ends, and whether it still supports your ownership plan? Reviewing your lease guaranty every few years can help you identify income, financing, vacancy, and value risks before they limit your options. Contact me for the expanded Retail Lease Guarantee Review Checklist . It includes a more detailed document list, guarantor review questions, financial and ownership checks, vacancy and replacement cost considerations, and a one page owner summary you can use before a refinance, renewal, hold, or sale decision. Are you relying on a guaranty that will still provide meaningful support when you refinance, renew the lease, or sell the property? Based in Los Angeles. Serving Southern California. Active across California. Advising clients nationwide. #RetailRealEstate #CommercialRealEstate #RetailProperty #NetLease #LeaseGuarantee #CorporateGuarantee #TenantCredit #PropertyValue #RetailInvesting #InvestmentSales #MarcRetailGuy #MarcPerlof
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