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 September 12, 2025
Cherished Malibu Seafood Shack The Reel Inn May Rebuild After State Reversal  Malibu’s one-of-a-kind seafood spot, The Reel Inn, may once again serve its signature fish puns and fried and grilled platters on Pacific Coast Highway after the state reversed its earlier position that blocked the restaurant’s return, according to Eater LA...
By Marc Perlof September 8, 2025
Hey, Retail Real Estate Rockstars! The Big Beautiful Bill (H.R. 1) has completely changed the rules for State and Local Taxes (SALT), which is great news for any property owner who has ever cringed when they see their tax bill. For those of you investing in retail real estate, this is the kind of victory that calls for a double espresso and a fresh pro forma. We're talking about actual tax relief in 2025. Let's dissect it. What Just Happened? The SALT deduction cap, once stuck at $10,000 per household, has officially increased to $40,000 for joint filers and $20,000 for single filers — but only between 2025 and 2029. After that, it’s back to the old cap unless Congress re-ups¹. Important Clarification for Property Owners While the IRS frames the new SALT cap in terms of individual filers ($20,000 single / $40,000 joint), the impact depends on how your retail property is owned: LLCs, Partnerships, and S-Corporations (Pass-Throughs): Income, expenses, and property taxes flow through to the owners’ personal returns. The higher SALT cap allows greater deductions here, boosting post-tax cash flow for the individual owners. Trusts & Estates: Similar pass-through treatment, meaning beneficiaries or trustees may capture the benefit depending on structure. C-Corporations: The SALT cap generally doesn’t apply, since corporate taxes are calculated differently and deductions follow corporate rules. REITs (Public or Private): REITs have their own tax regime, but shareholders who receive pass-through income may benefit at the individual level. Direct Individual Ownership: If you hold the property in your own name, property taxes fall directly under the SALT deduction rules. If you live in a high-tax state like California, New York, or New Jersey, this means you can deduct a lot more of your state income, property, and local sales taxes on your federal returns. Why Retail Property Owners Should Care More Deductible Property Taxes You can lower your taxable income on your federal return by deducting a larger portion of your high property taxes on retail assets. Boosts Post-Tax Cash Flow Increased deductions = less tax paid = more cash in your pocket. Offsets Reassessment or NNN CAM Spikes With inflation and property tax reassessments squeezing margins, this SALT cap increase gives you some room to breathe¹. Attractive to High-Income Buyers New investors seeking tax efficiency may find your retail property more alluring if you offer larger deductions. Strategic Planning Window: 2025–2029 These changes expire after 2029, so use this window wisely — structure sales, 1031 exchanges, or renovations when you can best leverage the deduction bump¹. Real Data, Real Impact The original SALT cap from the 2017 Tax Cuts and Jobs Act was projected to cost Californians alone over $12 billion in lost deductions annually². Nearly 30% of households in high-cost areas maxed out the previous SALT deduction limit². What About NNN Leases? Here’s the twist: if your property is on a triple-net (NNN) lease, your tenants — not you — pay the property taxes. For Landlords: The SALT cap change doesn’t directly benefit you, since you aren’t the one writing the property tax check. For Tenants: They may be able to deduct more of those property taxes on their federal returns, depending on how their business or personal tax filings are structured¹. Smart Move: Share this info with your tenants. Suggested Subject Line for Tenant Email: “You May Benefit from New Tax Deduction Rules (H.R. 1)” A simple note saying, “The new federal tax law (H.R. 1) increased the SALT deduction cap for 2025–2029. Since you pay property taxes under your NNN lease, this may be relevant for your tax planning. Please confirm with your CPA.” That small gesture positions you as knowledgeable, supportive, and proactive — which builds goodwill and strengthens tenant relationships. If you’re considering a sale, refinance, or exchange between now and 2029, let’s talk strategy while this deduction window is wide open #RetailRealEstate #CommercialRealEstate #TaxStrategy #SALTdeduction #PropertyOwners
By Marc Perlof September 5, 2025
The Iconic Reel Inn Malibu To Say Goodbye After 36 Years Plans to resurrect The Reel Inn Malibu after the Palisades Fire have been shelved following a decision by the California Department of Parks and Recreation not to renew the restaurant’s lease, as reported by The Wall Street Journal. The move effectively closes a 36-year chapter for the 144-seat seafood shack on Pacific Coast Highway, long recognizable for surfboards on the walls, clever signage, chalkboard menus, and the relaxed Malibu customers...
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