Weekly Retail Real Estate News

Marc Perlof • November 3, 2023
Markets rise after Federal Reserve hits pause again on rate hikes


What we covered here
  • US stocks surged Wednesday after the Federal Reserve announced it would hold its target rate steady at the conclusion of its two-day monetary policy meeting.

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Appealing To New Palates, Ethnic Grocers Expand Into New SoCal Territory


On the hunt for the freshest sushi-grade fish, the puffiest pita or the spiciest Thai peppers, a growing group of authenticity-seeking home cooks is driving demand for ethnic grocers to expand into parts of Southern California where they have never been before.


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Available retail space hits 18-year low

 

Expanding brands are now contending with the biggest seller’s market in retail real estate in nearly 20 years, according to one of the world’s largest real estate services companies.

 

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Net-Lease Giant Realty Income To Become Even Bigger With Deal To Buy Spirit Realty Capital


One of the largest publicly traded real estate investment trusts plans to buy rival single-tenant, net-lease property giant Spirit Realty Capital Inc. in an all-stock transaction valued at roughly $9.3 billion. Realty Income Corp. executives said the acquisition would make the REIT the fourth-largest on the S&P 500, as well as the index's 150th-largest company, with an enterprise value of $63 billion.

 

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Denny’s To Grow Location Count for Its New Breakfast-Focused Chain


Denny’s is looking to expand the footprint of Keke’s Breakfast Cafe beyond its Florida home base after signing 14 franchise agreements to open at least 100 locations nationwide over the next five years.

 

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Inglewood transit project gets favorable rating from federal government


INGLEWOOD – The city of Inglewood announced they have achieved a major milestone in receiving federal funding towards the Inglewood Transit Connector (ITC) project. The City received a positive rating which declares the project eligible for funding from the Federal Transit Administration’s Capital Investment Grants (CIG) program which moves the project closer to groundbreaking.

 

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Noodles Finds Gold with ‘Under the Rainbow’ Growth Strategy


Thanks to available markets in warmer climate states, the fast casual believes it has room for 2,000 restaurants in the next 10 to 15 years. Noodles & Company believes the future of franchising is “under the rainbow,” according to a new development strategy. The national fast casual has been monitoring guest migration patterns, which show a pot of gold in the southern region of the U.S. 

 

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BJ’s to make Alabama debut


Bj’s Wholesale Club is getting ready to enter its 20th state as it continues to grow its footprint in the Southeast.

The membership warehouse club retailer will open a store in Madison, Ala., on Friday, Nov. 10. The club is part of Town Madison, a mixed-use development close to Toyota Field.

 

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Walmart invests over $500M to upgrade 117 stores


Walmart on Friday will celebrate the grand reopening of 117 stores representing over a half a billion dollars in capital investments across 30 states, the company announced Monday. Walmart is investing more than $9 billion over two years to modernize over 1,400 stores across the U.S.


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American Freight expands into Utah with SLC locations


Appliance and furniture retailer American Freight is expanding its presence into a new state: Utah. The retailer is expanding its footprint of stores into the Beehive State with four locations in Ogden, Layton, Orem and Logan, all in the Salt Lake City metro area. The 23,000-sq.-ft. Ogden store is slated to open first, with a grand opening celebration scheduled for Nov. 10-12.

 

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Authentic Restaurant Brands completes acquisition of Pollo Tropical parent Fiesta Restaurant Group for $225 million


Authentic Restaurant Brands has completed its previously announced acquisition of Fiesta Restaurant Group, parent of the Pollo Tropical chain, for $225 million, or $8.50 per share, the acquiring company said Monday, taking the company private. Trading of Fiesta’s stock on the NASDAQ Global Exchange was also halted on Monday.


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The Nuances of Calculating Net Operating Income (NOI)


Commercial Real Estate is an industry in which the numbers tell the story. Between rent growth, vacancies, cap rates, and more, it can be difficult to get a quick idea of how a given property is faring in today’s CRE environment. This is especially true in a turbulent CRE landscape, where different sectors face different levels of success given various economic factors. This is where Net Operating Income (NOI) comes in.


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Can Kylie Jenner’s Khy follow in Skims’ $4 billion footsteps?


The Kardashian-Jenner clan’s business venture successes are numerous at this point. Between the billion-dollar Skims and the continuously growing Good American, the family has now had multiple major fashion successes. That’s been thanks, in part, to partnerships with the serial entrepreneur couple of Emma and Jens Grede, who co-founded both brands.


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By Marc Perlof October 31, 2025
Fed Cuts Rates Again, Boosting Confidence in CRE Recovery In a closely watched decision, the Federal Reserve cut its benchmark interest rate for the second consecutive month. The new target range of 3.75% to 4% reflects continued efforts to ease financial conditions and stabilize capital markets, even as economic signals remain mixed...
By Marc Perlof October 27, 2025
If you own retail real estate, here’s what might change for you. The hospitality workers’ union UNITE HERE Local 11 is pushing a bold new initiative to raise the City of Los Angeles $30 minimum wage for all city employees by July 1, 2028¹. While the first ordinance covered hotel and airport workers, the union’s latest ballot measure would extend this wage citywide². As an expert in retail real estate, here’s what that means for your properties. Higher wages will immediately impact tenant affordability and rent-to-sales ratio calculations that drive lease viability. Many retailers operate with payroll costs at 25 to 35 percent of gross revenue, leaving little cushion for a wage that’s nearly double the current state minimum of $16/hour³. When margins tighten, tenants face a choice: raise prices, cut staff, or negotiate rent. For landlords, that translates into valuation pressure because commercial property values depend on stable rental income. The small business impact in Los Angeles could be profound. Independent restaurants, boutiques, and service operators, the lifeblood of local shopping centers, run on razor-thin profits. If forced to meet a $30 wage, some may relocate to cities like Burbank or Glendale, where municipal wage laws are lower, or close entirely⁴. That shift could spark short-term vacancy spikes and longer lease-up periods. Still, there’s a possible upside. When low-wage workers earn more, they spend more locally. For well-positioned centers with necessity-based tenants: grocers, pharmacies, quick-service restaurants, rising wages could strengthen revenue resilience. Key takeaways for retail landlords: Audit tenant financial health and exposure to rising payroll costs. Review lease clauses that address operating-cost pass-throughs. Model new rent-to-sales thresholds under a $30 wage scenario. Track tenant retention and market-rent shifts across nearby cities. Prepare for valuation adjustments as cap rates reflect greater income volatility. If you own retail real estate in the City of Los Angeles, now’s the time to stress-test your portfolio. Let’s review your leases before this wage shift hits. Call or DM me for more information. When the $30 wage arrives, will higher pay strengthen LA’s consumer base or hollow out the city’s small-business retail core? #LosAngeles30MinimumWage #RetailRealEstateInLosAngeles #TenantAffordabilityAndRentToSalesRatio #SmallBusinessImpactLosAngeles #CommercialPropertyValuesLosAngeles
By Marc Perlof October 24, 2025
Toys"R"Us opening 10 flagships, 20 seasonal shops — here are all the locations The brick and mortar comeback of Toys"R"Us is moving into high gear ahead of the toy industry’s busiest season. In September, the retailer said that, in partnership with Go! Retail Group, it was planning to open 10 flagships and 20 seasonal holiday shops in the U.S. by year's end...
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