Sun Belt Markets With Stronger Population Growth Post Larger Retail Rent GainsSun Belt Markets With Stronger Population Growth Post Larger Retail Rent Gains CoStar Analytics The strength of the U.S. retail real estate recovery has surprised some market watchers over the past three years, as growing demand from a wide range of tenants has pushed...
Commercial real estate has long been a favored investment option, offering the potential for stable income streams and capital appreciation. Among the various commercial property types available, gas stations and convenience stores (c-stores) have gained prominence in recent years. One key reason for this is the significant tax advantages associated with owning such properties, particularly...
Macy’s announced the locations of four new small-format stores scheduled to open in fall 2023. These openings mark the first expansion of its small-format locations into the Northeast and Western regions of the United States, with openings in Boston, Las Vegas and San Diego. With small store opening momentum growing in the Midwest, the expansion...
There are signs of distress in CRE markets — jumps in distressed loan statuses and banks increasing CRE charge-offs — and yet the big wave of distress that everyone has been expecting doesn’t seem to have come. Marcus & Millichap CEO Hessam Nadji has said that all asset classes other than office have healthy fundamentals...
QDOBA, America’s #2 fast-casual Mexican restaurant brand, is planning for rapid expansion. With 750 restaurants in 45 states, the privately held company expects to double in size over the next decade, with plans to open 40 new restaurants this year, followed by 60 in 2024, and 80+ annually beginning in 2025. “QDOBA is an exceptionally...
During a conversation with Smalls Sliders CEO Maria Rivera earlier this year, she said she believes that “modular is the future.” Indeed, the reason her company is targeting ambitious growth is because it’s leveraging 800-square-foot modular shipping container units manufactured elsewhere and then shipped to their location. Once a plot is prepared, Smalls can open...
As the U.S. grocery sector consolidates, store foot-traffic data shows the different trajectories of German discounter Aldi’s and the two grocers — Winn-Dixie and Harveys — it plans to acquire. The analytics firm Placer.ai reported Aldi has benefited from strong foot-traffic growth this year. In July, visits were up 3% over July of last year...
Do you have a loan maturing with a balloon that is coming due in the next 24 months? Was your current loan generated in the past two to five years? Are you willing to invest liquid capital into your property for a refinance to meet its new loan to value ratio with an interest rate...
Dick’s Sporting Goods is starting to build out its roster of House of Sport locations, opening nine of its new hands-on stores that permit customers to try out gear on real fields and to do some rock climbing in between shopping. The Coraopolis, Pennsylvania-based retailer is in a major expansion mode with House of Sport,...
Wendy’s franchisees have opened the first of the chain’s “Global Next Gen” restaurants, in Oklahoma and Kansas, The Wendy’s Co. announced on Tuesday. Meritage Hospitality Group opened a unit in Edmond, Okla., and Wenspok Companies opened one in Great Bend, Kan. The first company-owned location using the new prototype that was slated to open in...
TGI Fridays has 58 years’ worth of history, and that’s a blessing and a curse, says newly named CEO Brandon Coleman. “Depending on which point in time you last visited a Fridays, you may have a different expectation,” Coleman says. “And I think setting that expectation for the guests and making sure that we create...
There are signs of distress in CRE markets — jumps in distressed loan statuses and banks increasing CRE charge-offs — and yet the big wave of distress that everyone has been expecting doesn’t seem to have come. Marcus & Millichap CEO Hessam Nadji has said that all asset classes other than office have healthy fundamentals...
Bed Bath & Beyond has selected the successful bidders for 109 of its store leases, and Burlington Stores will win the lion’s share. The off-price giant is slated to take over 50 former Bed Bath & Beyond locations for $13.53 million. Michael’s, Haverty, Macy’s and Barnes & Noble were among the other winners. Bed Bath...
How long have we been talking about a looming recession at this point? Eight months? A year? I certainly started bracing for one when banks started failing in March, but the economy actually seems to be chugging along pretty well. It’s not doing awesomely, mind you. With Q2 earnings season well underway it’s clear that...
Online sales rose nearly 2% in July. After slowing retail growth, sales got a midsummer boost amid multiple promotions by retailers, including Amazon’s Prime Day mega-event. Retail sales in July rose 1% from June, and were up 3.2% year-over-year, according to the National Retail Federation, whose calculation excludes automobile dealers, gasoline stations and restaurants to...
Dear Valued Investors, After being completely immersed in this business for numerous years, we made it a priority from the beginning when conceptualizing our business model, platform and process to make sure we listened intently to our most successful clients. While maintaining this strategy over the years, we have been able to glean complete...
Coffee chains like Starbucks and Tim Hortons are witnessing a growing trend among customers, particularly from the younger generation, who are favoring cold drinks and iced coffees over traditional hot options. Cold beverages account for a significant portion of sales for these chains, with Starbucks reporting that cold drinks make up 75% of its beverage...
Planet Fitness, a major gym franchise, is facing challenges in its expansion efforts due to various factors impacting the commercial real estate landscape. While there is a growing demand for convenient and affordable gyms like Planet Fitness, the company is struggling to open new locations due to persistent inflation, limited suitable space, and high construction...
The recent decline of Boston Market, an American rotisserie chicken chain, has been attributed to a series of missteps and challenges faced by the company. After undergoing brand transformation efforts, the chain was acquired by Engage Brands in 2020, which led to a downward trajectory in its performance. The current state of Boston Market involves...
After being completely immersed in this business for numerous years, we made it a priority from the beginning when conceptualizing our business model, platform and process to make sure we listened intently to our most successful clients. Maintaining this strategy over the years, we have been able to glean complete clarity in what most of...
A rent to sales ratio is a financial metric used in commercial real estate to evaluate the relationship between a tenant’s sales revenue and the amount of rent they pay. It is calculated by dividing the annual rent by the annual sales revenue of a tenant. The occupancy costs, which include the base rent and...
Executives of major restaurant chains are hungry for location expansion as some get enough long-awaited relief from soaring food and supply costs to make up for still-elevated construction expenses. Sales for many chains rose amid resilient consumer spending in recent months, with the escalating prominence of digital sales boosting restaurant development and design plans. Those...
Tim McLaughlin wanted to streamline the customer experience at his Caboose Brewing Co. in Vienna, Virginia, and the POS system he developed also has made accounting and percentage rent a snap for tenants at food halls. The multiple-points-of-sale model has grown cumbersome for vendors and landlords, said McLaughlin. His GoTab, he said, attracts bookkeeping-averse vendors...
July was the second lowest month for rent delinquencies this year for independent restaurant operators. New data from Alignable shows that 36% of independent restaurant operators couldn’t pay their rent in July, a material improvement from 45% who reported delinquencies in June. Julye was the second lowest month for rent delinquencies in the...
From taking global culinary tours to watching TikToks about the latest foodie trends, First Watch doesn’t draw any boundaries to where it can source its inspiration from to create new dishes and stay relevant. First Watch recently introduced a new line-up of permanent specialty iced coffees—like Honey Caramel Crunch and Mint Mocha—plus a seasonal summer...
Futuro Academy is a lot like many schools. Its mission is to provide a high level of education that helps develop the leaders of tomorrow. But unlike other public schools, Futuro Academy got its start in an empty grocery store. It’s one of the U.S.’s about 8,000 public charter schools. As public schools, they’re free...
CEO Maria Rivera weighs in on how this upstart brand is leaning into efficiencies and discipline ahead of exponential growth. Smalls Sliders is only about 4 years old. The brainchild of Brandon Landry, founder of Walk-On’s Sports Bistreaux, Smalls was spun off that Baton Rouge, La.-based sports-bar concept and is laser-focused on high-quality sliders served...
Since expanding to the U.S. in 1997, Fogo de Chão (pronounced fogo-dee-shown) has grown around the world with locations in North America, South America, the Middle East, and soon Asia. Why Fogo de Chão’s Sizzling Model is Sparking Rapid Expansion The most anticipated moment in dining—and the most fleeting—is the first bite, and one emerging...
WHILE CONSTRUCTION BIDS ARE STABILIZING, PERMITTING AND EQUIPMENT TIMELINES ARE STILL NOT WHERE THE COMPANY WANT THEM TO BE. Two years ago during a call with investors, former Darden CEO Gene Lee lamented how COVID delays were harming unit growth. He hoped the company would soon reach the higher end of its 2-3 percent expansion target....
Fitness tenants are flexing their muscles by bringing in new, frequent visitors, according to new data. In May 2023, year-on-year visits to fitness tenants were up by 7.8% compared to 2022, according to placer.ai. That’s on top of a 30.3% increase in January, a 17.2% surge in February, an 11.4% climb in March and an...
Introduction: The Experience Factor Members of Gen Z are graduating into adulthood and many are finding their independence, as the oldest members of this generation get their first taste of the workforce. This cohort of 16- to 26-year-olds is also exhibiting an array of distinctive, and perhaps surprising, consumer habits. They have clear ideas about...
The DLC has never been more bullish on the fundamentals we see at the property level. Retailers are waiting in line for any vacant space. They see a clear migration of consumers and establishments toward the suburbs, and open-air retail is perfectly positioned to flourish in this environment. The numbers do not lie. Open-air retail...
Orlando, Fla. — Darden Restaurants, Inc. has completed its acquisition of Ruth’s Hospitality Group, Inc. The Ruth’s Chris Steak House brand now joins and complements Darden’s portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze. Ruth’s Chris has 155...
Widespread Spending Gains, While Moderate, Highlight Shoppers’ Resilience Consecutive months of broad growth encouraging. Households increased their spending across a broad spectrum of stores in May, supporting a 0.4 percent rise in core retail sales. For the second straight month, eight categories registered sales growth, a testament to consumers’ spending power. The addition of 339,000...
Traffic at retail clinics within stores has more than doubled over the past five years, growing faster than traffic at urgent care centers, at primary care practices and at hospital emergency rooms, according to a report from health care data firm Definitive Healthcare. About 1,800 such retail clinics are in operation. Only 2% are in...
Earlier this week, local media outlets reported that the location in Silver Spring, Maryland—which opened in September 2022—would close on Thursday. In response, an IHOP representative said “After evaluating the results of our flip’d by IHOP pilot program, IHOP has decided not to continue the concept.” This is the third Flip’d location, following Lawrence, Kansas,...
Golden Corral Corp. plans to open Homeward Kitchen, the first fast-casual version of its buffet concept, in a former Chick-fil-A location in Southern Pines, N.C., a community northwest of Fayetteville, N.C. The Raleigh, N.C.-based Golden Corral said the 4,200-square-foot conversion to Homeward Kitchen will open in the fall, aimed toward counter service and a younger...
Tenants’ Renewed Focus on Profitable Locations Fuels Exodus From Aging, Indoor Properties The American mall is undergoing a transformation, but retail property professionals are still assessing what exactly it’s turning into. Industry analysts agree, after thousands of stores have closed, that the “if you build it, they will come” strategy woven throughout the retail industry’s...
THE CASUAL-DINING BRAND SEEKS 200 STORES BY 2027 AND EXPECTS TO SURPASS $1 BILLION IN SALES IN THE COMING YEARS. Twin Peaks is approaching store No. 100, a milestone resulting from momentum and perseverance. As a casual-dining brand relying heavily on the in-restaurant experience, COVID couldn’t have been more of a nightmare. But Twin Peaks...
First Watch CEO Chris Tomasso described Q1 as one of the best quarters he can remember in his 17 years at the company. Same-store sales increased 12.9 percent year-over-year, lapping 21.9 percent growth in 2022. Traffic increased 5.1 percent, outpacing the brand’s competition. Adjusted EBITDA was $27.4 million, up 42 percent from last year. First...
he Brand’s New Off-Premises Concept Is Thriving, but that Doesn’t Mean it’s Veering Away from the Dining Room Experience. Photo Courtesy of ColleenMichaels. P.F. Chang’s didn’t need an unprecedented global pandemic to know that off-premises is the future. The chain’s To Go concept debuted on February 2, 2020, when there were fewer than 20...
Photo Courtesy of Brett. Petco is extending its move beyond food and supply sales by looking to add 50 to 55 locations of its growing slate of veterinary offices in the coming year. The retailer aims to capitalize on the rise of pet adoptions since the start of the pandemic, especially among Gen Z...
CEO Wants to Take Combined Company to ‘New Heights Domestically and Globally’ Photo Courtesy of JHVEPhoto. Dave & Buster’s Entertainment, an experience-based restaurant chain with games and arcades created in the early 1980s, is readying itself for “a fresh new look” in the coming years after completing a nearly billion-dollar acquisition that brought a...
Olive Garden and Longhorn Set Total Sales and Weekly Sales Records in the Third Quarter, Further Widening Their Gap With the Industry. Photo Courtesy of Brett. Throughout the pandemic, Darden has championed pricing below inflation. Consumers are responding by staying put, CEO Rick Cardenas said. In the past three years, the company has underpriced...
One of the Brand’s Latest Prototypes Set Records When It Opened in January, Creating Momentum for the Decades-Old Breakfast Chain. Photo Courtesy of wolterke. Sixty-year-old Huddle House is boasting unprecedented financial figures coming out of COVID, and it’s doing so with new prototypes and nontraditional franchisee experience. A restaurant in Decatur, Illinois, opened...
Swedish Furniture Retailer To Roll Out Eight Stores, Nine Smaller Studios, 900 Pickup Locations Photo Courtesy of Pixarno. Ikea, the global retailer of furniture and household goods based in Sweden, is dramatically beefing up its brick-and-mortar presence in the United States, investing about $2.2 billion over the next three years to open eight big-box stores,...
But in Positive Sign for Retailers and Their Landlords, Two of Nine Store Categories Saw Gains Photo Courtesy of Jelena. The holiday shopping season didn’t turn out to be quite as jolly and robust as some forecasters predicted. But in a positive sign for retailers and their landlords, two of nine store categories still...
The Company Believes There’s a Strong Leadership Pipeline in Place to Grow the Brand in the Coming Years, but at a Measured Pace. Photo Courtesy of Restaurant Business Magazine. While meeting and greeting at the ICR Conference in Orlando, Darden CEO Rick Cardenas noted he ran into Ian Baines, who served as CEO of Cheddar’s...
By the End of Next Year, the Nextgen Casual Will Have Opened Its Smallest Ground-Up Design Ever in Central, Louisiana. Photo Courtesy of RestaurantNews.com. One of the few benefits Walk-On’s gathered from COVID is understanding its business model from a different perspective, says president and CEO Scott Taylor. When restaurants shut down, sales immediately dropped...
Retailer Says It Won’t Pursue Sale-Leaseback Deals Right Now Photo Courtesy of Wolterke. Beleaguered Kohl’s, after conducting a “robust” analysis, has decided against putting its real estate up for sale, according to one of the retailer’s C-suite executives. The Menomonee Falls, Wisconsin-based chain, which has over 1,100 stores, has been under pressure from activist...
Photo Courtesy of Forbes. Sometimes Smaller Is Better A wide variety of retailers are opening up smaller-format stores, and each day a new company seems to be added to that list. For some of them, the forays are an attempt to have a brick-and-mortar presence outside of large malls and get closer to customers efficiently...
The restaurant chain was a compelling target for casual-dining company Dine Brands because it is a heavily franchised, high-growth concept that can add long-term value. In the casual dining segment, it doesn’t get more legacy than Dine Brands Global. The company owns both IHOP, established in 1958, and Applebee’s, founded in 1980. So,...