Weekly Retail Real Estate News

Marc Perlof • October 27, 2023
DTSM begins search for new security provider


After the shock announcement that private security firm Covered 6 had pulled out of the contract to patrol the 3rd Street Promenade, the Downtown Santa Monica, Inc. (DTSM) board has voted to move ahead with a Request for Proposal (RFP) from other similar companies.

 

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Vici Strikes $433 Million Deal With Bowling Center Operator Bowlero


Seeing a match between their strategies, publicly traded entertainment firms Vici Properties and Bowlero have teamed up on a nearly $433 million sale-leaseback deal.Under the agreement, bowling alley owner Bowlero sold 38 of its centers to Vici, an owner of casinos, waterparks, resorts and golf courses.

 

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Golden Corral’s Fast-Casual Spinoff is Coming Soon 


Golden Corral—known as the biggest and most recognizable buffet chain in America—is just a couple of months away from its debut in the fast-casual segment. The chain’s new spinoff, Homeward Kitchen, is scheduled to open in Southern Pines, North Carolina in December. The restaurant is opening in a former Chick-fil-A building.

 

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Z Gallerie files for bankruptcy; pins hopes on finding buyer


Z Gallerie has filed for Chapter 11 bankruptcy protection and is hoping to find a buyer to avoid liquidation. It’s the third bankruptcy filing for the LA-based home furnishings and décor retailer, which previously filed in 2019 and 2009. In the new filing, Z Gallerie noted “severe liquidity constraints” resulting from “underperforming retail stores, adverse macroeconomic trends, and industry specific headwinds.”  The retailer, which one had nearly 60 stores, currently operates 21 locations in nine states and an e-commerce site.

 

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Google opens store, cafe at new center in California


Google is celebrating its 25th anniversary with the opening of a “Visitor Experience” center that includes its first brick-and-mortar store on the West Coast. Located at the company’s Mountain View headquarters, the 10,000-sq.-ft. center is designed to provide visitors with  an immersive experience that showcases Google as well as the local community.

 

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Uniqlo Planning Big Expansion, Wants To Bring U.S. Store Count To 200


Apparel brand Uniqlo is riding a wave of customer interest in its affordable offerings and plans to dramatically expand its footprint in the U.S. over the next three years. Uniqlo USA CEO Yoshihide Shindo said he aims to have 200 stores in the U.S. by 2027, beauty, fashion and wellness site Glossy reported. Hitting that target would represent a big growth spurt for the company, which has 53 stores nationwide now.

 

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Texas Roadhouse Is America's Most Beloved Sit-Down Restaurant Chain, New Report Says


It was already shaping up to be a stellar year for Texas Roadhouse as the chain saw rapid growth and record numbers of visits from its loyal customers. And now, new data only reinforces that Americans' love for Texas Roadhouse runs deep.

 

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Bank of America, Wells Fargo, JPMorgan Chase To Close Dozens of Branches


Banks are closing dozens of branches in less desirable areas to cut costs as financial pressure increases from higher interest rates and distressed commercial mortgages on office buildings. Bank of America, Wells Fargo, JPMorgan Chase, U.S. Bancorp and a handful of smaller banks have all recently closed or will soon close branch offices nationwide. The branches set for shutting are located in Atlanta, Dallas, Los Angeles, Phoenix, San Francisco and other large markets.


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Jollibee Embraces Life as a Challenger Brand

This year, Jollibee—a worldwide fast-food chain founded in the Philippines with roughly 1,300 total locations—is celebrating its 45th anniversary and 25 years in North America. However, head of marketing Luis Velasco describes the concept as a challenger brand.


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Fred Segal opens on Montana Avenue


Iconic Los Angeles fashion brand Fred Segal is returning to Santa Monica with a new store at 1533 Montana Avenue. The retailer announced its new location on social media last week to the surprise and delight of many.

 

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Rite Aid gets court OK for nearly $3.5B in bankruptcy financing


Rite Aid’s business portfolio “is burdened by unprofitable stores that it cannot effectively exit absent the tools available in Chapter 11,” Jeffrey Stein, who was appointed CEO and chief restructuring officer immediately upon the Chapter 11 filing, said in court documents. “Those stores challenge the company’s earnings profile, turnaround initiatives, and free cash flow.” Stein stated that Rite Aid has $80 million in annual “dead rent” costs because of its inability to exit underlying leases outside of a Chapter 11.


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Popeyes’ Journey from Cult-Favorite to the Mainstream


It’s been more than four years since Popeyes’ chicken sandwich landed like a meteor. The company fulfilled as many orders in 14 days as it projected over the following month and a half, leading to Popeyes famously running out of supply. Some stores reported serving 1,000 chicken sandwiches per day, and one tweet (the now-infamous challenge to Chick-fil-A) ended up garnering north of 20 billion impressions, according to Ad Age. Or some $220 million worth of media.


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Iconic Gladstones restaurant reopens; to remain open at least another two years


Gladstones restaurant which was scheduled to close last month has been given a reprieve. The iconic restaurant, once the highest grossing eatery in Los Angeles, has reopened under new management and is expected to keep its lease for at least two years.


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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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