On April 1, 2024, the minimum wage for fast food workers who work at a “National Fast Food Chain” will increase to $20/hour in California. This is a full 25% higher than the current $16/hour for all other workers.  This minimum wage is the major provision of Assembly Bill 1228 that was signed by the Governor on September 28, 2023. AB 1228 also establishes a Fast Food Council that will have the right to impose further requirements. I have been following this legislation closely for the past couple of years and have read numerous articles about the bill including the actual text (link prov ..read more

There have been a lot of articles and blogs detailing all the events of 2023. Although it’s always good to reflect back and learn from experience, at Progressive Real Estate Partners we’re more focused on understanding the current environment and looking forward. SoCal’s Inland Empire region continues to enjoy population growth, new housing developments, job growth and an overall favorable economic environment. All of these factors are having a positive impact on the region’s retail real estate market. As we enter 2024, I’m going to share some Inland Empire retail market statistics, observati ..read more

As the year 2023 winds down, many in the real estate industry try to find some time over the next few weeks for education, introspection, and self-improvement.  Along those lines, I’m always on the lookout for good reads and the following are five books that I have personally read in 2023 that I would recommend: 1.  Am I Being Too Subtle by Sam Zell: The business community lost an icon when Sam Zell died in May of this year. His life story is phenomenal. Amongst many of his accomplishments, his real estate investments morphed into Equity Residential which when it went public in 1993 ..read more

I’m pleased to share that I recently earned the CCIM Designation following over 200 hours of course work and successfully passing the 6-hour exam in Seattle last month. The acronym CCIM stands for Certified Commercial Investment Member. This designation has been earned by over 25,000 people since 1967 and about 13,500 individuals currently hold the designation. Why did I pursue a CCIM designation after 31 years of being a commercial real estate broker: Reason #1 – FONK:  I have a Fear of Not Knowing (“FONK”). Over my career, I have seen many individuals with the CCIM designation and I wa ..read more

Last week, twelve members of the Progressive Real Estate Partners team traveled to San Diego to attend the 2023 ICSC Western Conference. Since our firm is primarily active in Southern California this is always one of our favorite conferences because of the California and overall West Coast focus. Our team interacted with hundreds of our industry colleagues and clients. Overall, it was very productive and it’s always terrific to meet with so many people in person so that we can further build the relationships that enhance ALL of our successes. From an economic perspective, the themes were very ..read more

After reviewing the 3rd quarter 2023 stats for SoCal’s Inland Empire retail real estate market, it’s clear we’re still enjoying a favorable market BUT I realize how one interprets the information largely depends on their perspective. Included in this graph is the most recent data compared to the 10-year “average” and 10-year “best” stats. Clearly each situation is unique but for illustrative purposes, let’s look at the data from the perspective of a Landlord, Leasing Broker, Seller, Buyer, Developer, Tenant and lastly my thoughts (cue read til end). These perspectives are based upon what the ..read more

About 15 years ago, I was involved in a transaction for over $10M that didn’t close because the buyer’s money was stolen by their Qualified Intermediary (“QI”) also known in the industry as a 1031 Accommodator. The buyer had inherited agricultural land that they had sold for over $20M. They entrusted these funds to a QI that was recommended to them by a community member. They then engaged to purchase two properties. The first transaction went smoothly with the QI wiring the approximately $10M required to escrow and the purchase closed as planned. However, about three weeks later when they wen ..read more

Nation’s Restaurant News publishes a list of the Top 500 Restaurant Chains ranked by sales volume. They also include total sales growth, per unit sales growth,  per unit growth, and the number of units in each chain. After reviewing the information closely, here are some of my observations, especially as it relates to Southern California. McDonald’s Still Leads the Way in Total Sales There are only 7 chains doing over $10B per year in sales. They include:                                      &n ..read more

Today’s retail real estate market in SoCal’s Inland Empire fascinates me. In my 30+ year career and as President of Progressive Real Estate Partners, I believe this may be the fundamentally strongest market that I have seen. And yet when you speak to all the different players, the narrative might make you think otherwise. The difference in perception is based upon what your position is in the market: Landlords are generally pretty content right now. Landlord leasing brokers are pleased with their ability to get spaces leased, but they are constantly needing to replenish their pipeline. Tenan ..read more

It was great to be back in person at this year’s ICSC Las Vegas conference and to learn about the latest trends shaping the retail real estate industry. Nine brokers from the Progressive Real Estate Partners team attended and we had an incredibly productive show with lots of meetings, learning and networking. In an industry largely driven by relationships attendees were thrilled to be interacting in person vs by computer and there was a high level of optimism and recognition that not only are we in the retail real estate business but we’re also in the problem-solving business. There were a re ..read more