Real Estate by Aladdin

10/03/2025

Risk is a part of the investment landscape. Are you confidently navigating it effectively?

09/29/2025

Uncertainty = Risk

The Trump Administration is proposing further budget cuts to the National Oceanic and Atmospheric Administration (NOAA) for fiscal year 2026, which begins October 1. The agency, a branch of the U.S. Commerce Department, lost about 30 percent of its funding in 2025, and it is set to spend 14 percent....

09/18/2025

The Federal Reserve met today for its monthly policy meeting, where it sets benchmark interest rates that influence the broader economy.

Now that it's done, if you're considering an acquisition, now is a great time to get your financing ready.

I'm happy to explain how today's Fed meeting results could impact your investment decision, or connect you with the people you'll need to ease you through every step.

Here's a quick summary of what you need to know from the meeting:

09/18/2025

Like what Fed Chair Jerome Powell said Wednesday September 17, there's no risk free path.

Sacramento is weighing a vacancy tax on blighted commercial properties, following examples in San Francisco and other cities, as California debates statewide measures to curb long-term vacancies and spur redevelopment.

09/11/2025

If you're not sure what to do or you're ready to act, we should talk.

08/31/2025

The Shoppers Foods closures (4 stores in Southern MD) reflect broader industry consolidation. Retailers are closing underperforming stores and considering location changes for other stores from less strategic locations to optimize profitability and streamline logistics.
This is happening across retail, UNFI’s decision mirrors national strategies of closing less profitable stores and reinvesting in digital fulfillment, delivery, and core, high-performing locations. Retail closures outpace openings. In the first half of 2025, 6,000 retail stores closed while less than 4,000 opened.
Some forecasts estimate that more than 15,000 retail stores in the US will close in 2025, including grocery stores. Kroger, one of the largest grocers in the US, plans to close about 60 underperforming stores over the next 18 months. Other regional chains like Shaw’s, Winn-Dixie, and Safeway have also announced closures of multiple locations.

So what should retail landlords pay attention to Primarily, operational cost, changing consumer behavior, and the digital shift.

Our analysts at the Aladdin Group analyze demographic, psychographic, and foot traffic data to evaluate retail sites and compare trade areas with competitors to benchmark store performance.

If you’d like an analysis of your property and want to understand how these trends may impact your tenants or your market, reach out to me and the Aladdin Group.

WALDORF, Md. — The familiar Shoppers Food in Waldorf, located at 1170 West Smallwood Drive, will close this fall as part of the parent company’s broader effort to shrink its retail footprint. United Natural Foods Inc. (UNFI) has confirmed the store will cease operations by mid-October, one of fo...

08/30/2025

There are many economic factors working against restauranteurs. Restaurants are labor intensive with most operating as a service industry in the front of the house and manufacturing in the back, making labor costs very high. Industry wide, profit margins are generally pretty slim compared to other businesses; 3–5% average net in full-service, 6–9% average net in QSR, Catering & food trucks average 7–10%, Exceptions for some (not the norm) high-performing restaurants can push into the 10–15% range.

On paper, restaurants are high-risk tenants (thin margins, high failure rates, lots of operational stress) and restaurant buildouts are expensive. Yet landlords may still consider them attractive tenants. WHY?
• Restaurants can drive consistent daily traffic to a property.
• A good restaurant can keep a shopping center, mixed-use building, or downtown corridor lively, but it better be good! If it is, it can benefit other tenants (retailers, service providers), boosting overall leasing demand.
• Given the expense of buildouts ($250K–$1M+), operators who commit to 5–10 year leases (with pre-negotiated renewals) makes the investment more palatable, giving landlords security of income.
• Restaurants can sometimes pay higher base rent than certain retailers or service businesses, especially in prime locations with good visibility.
• If a percentage rent (a % of sales on top of base rent) is negotiated, it gives landlords some upside if the restaurant succeeds.
• A "destination" restaurant can elevate the image of a property, adding intangible value to the building and can attract other desirable tenants.
• Restaurants can add variety to a property and fill spaces that might be harder to lease.
• Restaurants run by franchisees with corporate guarantees or large restaurant groups offer lower risk if they have strong financial backing.

Even with these benefits, landlords will want to protect themselves with:
• Higher security deposits or personal guarantees,
• Carefully structured tenant improvement (TI) allowances,
• Strict vetting of operator’s experience, concept viability, and financials, and
• Exhaustive due diligence on location suitability

Restaurants tend to fail more often than other businesses, but when they succeed, they can be powerful anchors, add traffic, prestige, and long-term leasing value to a property. Get Landlords to say yes and get your restaurant off to a great start. Reach out to the Aladdin Group.

08/27/2025

Time 4 Bagels?
Of course

Coffee can be highly profitable in a bagel business, potentially offering a 90% profit margin per cup by selling a $2 cup for a $0.20 cost, and significantly increasing daily profits and annual income. While a coffee supplier's actual profit margin might be lower (2.5% to 6.8%) due to overhead, the high volume of coffee sales can still contribute a substantial amount of profit.
The difference between the low cost of ingredients and the selling price of a cup of coffee can result in a profit margin as high as 90%.
For a business selling 150 cups a day, with half of that buying coffee, the additional profit could be around $135 a day, or nearly $50,000 annually.
It doesn't even have to be great coffee!

08/23/2025

See how commercial real estate is performing where you invest and compare it to other regions. Check out Integra's 2025 Local Market Reports.

IRR Releases Mid-Year Viewpoint Commercial Real Estate Reports Packed Full of National, Regional and Local Market Stats

08/21/2025

Two locations, same rent, same area. At which one will you make the most money? Can your agent tell you?
I can. Reach out before you lease. Ask me how?
804.581.3604
[email protected]

08/18/2025

Most retail leases, were for spaces of 5,000 square feet, or less in the second quarter in 2025.

Retail real estate investment rose 23 percent in early 2025, outpacing office and multifamily as tight supply and stable demand draw capital back to a sector once left for dead.