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 March 20, 2026
Santa Monica Airport Conversion Project Unveiled By City SANTA MONICA, CA — Following a nearly two-year public engagement process, the city has released a draft Framework Diagram for the Santa Monica Airport Conversion Project. "The Framework Diagram brings many ideas together to find common ground about what should go where and what types of uses belong in different areas of the site," the City of Santa Monica explained in a March 11 news release....
By Marc Perlof March 16, 2026
By Marc Perlof | MarcRetailGuy CA #01489206 March 16, 2026 If you own retail real estate, here’s what just changed for you. Retail property owners are asking a simple question today. Is the market about to change? Several economic signals moved quickly over the past two weeks. Oil prices surged as conflict disrupted major energy supply routes. The U.S. job market also weakened unexpectedly during the same period. Financial markets have become more volatile as investors reassess economic risks. When oil prices rise and hiring slows, real estate investors begin adjusting risk assumptions. These adjustments often appear first in lender loan standards and buyer pricing. For retail property owners, these shifts can influence demand and property values. Owners of strip centers, shopping centers, store front retail, and NNN retail properties (multi-tenant and single tenant) should watch closely. Understanding these signals early can help protect property value and guide decisions. Market Analysis and Trends Energy markets reacted first. Brent crude oil recently surged above $100 per barrel. The increase followed conflict disrupting shipping routes and global oil supply.¹ Much of the concern involves the Strait of Hormuz shipping corridor. Roughly 20 percent of global oil supply normally passes through this route. Even small disruptions there can quickly affect shipping costs and supply chains.¹ Consumers often feel the impact through gasoline prices. Since late February, U.S. gasoline prices increased more than 15 percent. Prices reached roughly $3.47 per gallon in early March.¹ In Southern California, fuel prices are usually among the highest nationally. Drivers in the region are already paying significantly more at the pump. Higher fuel costs can quickly strain household budgets. This often reduces spending at restaurants and other nonessential retail businesses. The labor market also signaled caution. The U.S. economy lost about 92,000 jobs in February 2026. Unemployment rose to approximately 4.4 percent during the same period.² Slower hiring typically leads to reduced consumer spending several months later. When advising retail property owners, I track three important property risks. These include tenant margin pressure, lender loan standard changes, and buyer cap rate expectations. Key signals retail property owners should monitor include: Brent crude oil moving above $100 per barrel during Middle East supply disruptions.¹ U.S. gasoline prices rising more than 15% since late February.¹ The U.S. economy losing roughly 92,000 jobs in February while unemployment increased.² Essential Retail vs Nonessential Retail Retail categories respond differently during periods of economic stress. Essential retail includes grocery anchored centers, pharmacies, and daily service tenants. These businesses usually remain stable during economic disruptions. Consumers still need basic goods even when household budgets tighten.³ Nonessential retail categories are more sensitive to economic pressure. Restaurants, entertainment venues, and similar tenants often experience softer sales first. This usually happens when consumers reduce spending. For property owners, tenant mix becomes especially important during economic uncertainty. Centers anchored by essential tenants often remain more stable. Properties dominated by nonessential retail may experience greater sales volatility. Strategic Advice for Retail Property Owners Economic uncertainty is a good time to review several property fundamentals. 1. Review tenant stability Evaluate tenant sales performance, credit strength, and upcoming lease expirations. 2. Monitor capital markets Lenders and investors may begin tightening loan standards as risks increase. 3. Evaluate sale timing carefully Markets sometimes offer short windows before buyer pricing adjusts to new conditions. Even a 1/4% to 1/2% increase in cap rates can affect property values. For example, a $6 million retail property valued at a 6% cap rate generates about $360,000 in annual income. If buyer expectations move to a 6.5% cap rate, value could fall near $5.5 million. If you own retail property and are wondering how these economic signals could affect buyer pricing or cap rates for your asset, this is exactly the type of analysis I help owners evaluate before making a sale or hold decision. If investor cap rates in your market moved just 1/2% higher, how much would the value of your retail property change? Investor Behavior During Uncertain Markets Market volatility often changes how investors evaluate retail properties. Research shows that investors prefer assets with stable income during uncertain periods. Properties with strong tenants and longer lease terms usually attract the most buyer interest.³ Assets with predictable cash flow often perform better during market uncertainty. Properties with weaker tenants or short lease terms may face greater scrutiny. For retail property owners, tenant quality and lease structure matter even more in volatile markets. What This Means for Retail Property Owners Retail property values depend on more than location. Energy prices, employment trends, and capital markets also influence buyer demand. If oil prices stay elevated and hiring slows, investors may become more selective. Properties with weaker tenants or short lease terms may see pricing pressure first. Well located shopping centers with strong tenants and long leases usually remain more resilient. Owners who monitor these signals early often have more strategic options. If economic uncertainty continues over the next twelve months, how strong are the tenants in your retail property? #RetailRealEstate #CommercialRealEstate #NNNProperties #ShoppingCenters #RetailPropertyOwners #CREInvesting #RealEstateInvestors #CREMarketInsights #RealEstateTrends #CaliforniaRealEstate #LosAngelesRealEstate #CapRates
By Marc Perlof March 13, 2026
US consumer inflation steady before Iran conflict drives up oil prices WASHINGTON, March 11 (Reuters) - U.S. consumer prices rose moderately in February as rents maintained a steady pace of increases, though households paid more for gasoline and at the supermarket and higher costs are in store because of the escalating war in the Middle East .  The Consumer Price Index report from the Labor Department on Wednesday, which also showed underlying inflation muted ​last month, covered the period before the U.S. and Israel launched strikes against Iran. The attacks at the end of February were met with retaliation by Tehran and have boosted oil prices...
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