Category: SNL Insights

The Retail Recap hosts, Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead, are back with a new episode. From Starbucks shuttering 430+ stores to the Salad & Go contraction and a rundown of current net lease market dynamics, the group tackles it all, plus a few hot takes on state fair food and Texas steakhouse rankings.

 

Key Topics Covered:

Starbucks Closures & Opportunities
Starbucks closed 434 locations at the end of September, with 22 in Texas, including several in DFW. Most were non–drive-thru or underperforming café models. Still, a few recent builds with drive-thrus made the cut. The upside? Landlords may land buyouts or backfill deals with tenants like Chipotle.

 

Tenant Trends & Market Updates

• 7-Eleven: 74 listings on market (up from 72), with older portfolios hitting as bonus depreciation incentives persist. Cap rates hold steady, with strong activity in Texas, Florida and the Carolinas.
• Chipotle: Inventory dropped from 52 to 49; net positive absorption. Cap rates range from 4.0%–5.65%, with median pricing around $3.5M.
• Starbucks: Active listings remain, despite closures. California and New York saw the biggest cuts. Even with softening performance in urban markets, the brand’s real estate remains high quality.

Rate Cuts & Capital Outlook
Despite a recent rate drop, lenders report it’s “already priced in.” CME Group forecasts a 97% chance of another 25 bps cut next month. Treasury yields remain stable, hovering around 4.1%–4.3%.

 

Retail Headlines

• Salad & Go closed 41 locations, largely in Houston and San Antonio. Well-located DFW sites may backfill quickly.
• Toys R Us is staging a comeback, with 10 flagship stores set to open by year-end.
• Peloton plans to shutter all its showrooms nationwide.
• Racetrac acquires Potbelly for $566M, likely signaling an in-store food strategy expansion.
• Aldi targets 800 new stores in 3 years—many expected to backfill second-gen spaces.

 

And Finally… Steakhouse Showdowns & Fried Fair Fare
From Perry’s pork chops to Mastro’s glam, the team breaks down the latest “Best Steakhouses in Texas” list—and offers a few honorable mentions. Plus, a new wave of bizarre Texas State Fair foods (deep-fried carbonara, anyone?) draws criticism and curiosity.

 

While closures and cap rate shifts dominate the headlines, solid real estate fundamentals continue to create new opportunities for investors and developers. As always, the team serves up sharp analysis with a side of humor, and a few questionable food takes.

 

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In this episode, hosts Jeremy Mercer, Rob Franks, and Secure Net Lease’s Bob Moorhead dive into retail investment trends, zeroing in on cap rate stability, the renewed power of bonus depreciation, and the competitive dynamics reshaping retail deal making. T-Mobile’s Zach Spletter joins the conversation for added perspective from the tenant side.

Cap Rates Holding the Line

Despite market uncertainty, cap rates across major retail brands remain remarkably consistent from the prior month:

• Starbucks is holding steady with a 6% average list cap. Inventory is growing slightly, but investor appetite is flat due to shorter lease terms and landlord responsibilities.
• Chipotle’s average list cap is in the 5% range when looked at nationally, bolstered by its lease structure and the popularity of drive-thru-equipped locations.
• 7-Eleven cap rates vary, with newer truck stop-style builds reaching price points of $14M+. These larger formats are seeing increasing demand in growth states like Texas, Florida, Arizona and the Carolinas.
• Dutch Bros stands out for its 15-year, true triple-net deals offering simplicity and security that investors continue to favor.

Inventory volumes across these brands are stable, and pricing hasn’t meaningfully changed. Buyers remain selective with elevated interest rates and negative leverage concerns.

Bonus Depreciation Sparks Movement

One of the biggest catalysts in the market right now is the return of 100% bonus depreciation, signed into law on July 4th. The effect was almost immediate as deal activity picked up, especially for large C-store assets that qualify.

While it hasn’t translated to a wave of closings just yet, there’s been a noticeable uptick in offers, site visits, and investor engagement. For many 1031 buyers and private capital groups, the added tax benefit is helping offset the sting of higher debt costs.

On the Ground: Tenant & Leasing Insights

Zach Spletter of T-Mobile joins to share how the brand continues to evolve from small-town expansion to top-100 metro relocations and suburban infill. Their ideal footprint (2,800–3,500 SF) often targets outparcels, and they’re focusing more on optimization and co-tenancy strategy.

Conclusion

Cap rates are holding steady, but buyer behavior is shifting as bonus depreciation re-enters the equation. Combine that with consistent inventory and potential rate cuts, and the back half of the year should see increased activity.

 

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July 4, 2025 – In a major win for commercial real estate investors, the One Big Beautiful Bill Act reinstating 100% bonus depreciation on qualified property as a permanent provision.

This change marks a pivotal shift from previous tax laws that included a scheduled phase-out. Now, investors can expense the full cost of eligible property placed in service after January 20, 2025, without worrying about legislative sunsets or shifting deadlines.

 

Why It Matters for Real Estate Investors

• Permanent Tax Benefit: Investors can deduct 100% of qualified property costs in the year placed into service. There is no expiration or phase-out.
• Strategic Flexibility: With bonus depreciation no longer time-sensitive, acquisition decisions can focus on fundamentals and timing that align with investor goals.
• Convenience stores stand out for their bonus depreciation advantages: 7-Eleven is the most viable net lease option currently eligible for bonus depreciation, as other corporate c-store brands typically sign ground leases that don’t qualify. As in prior years with 100% bonus depreciation, we expect all qualifying 7-Eleven offerings to sell out before year-end.

 

How Secure Net Lease Can Help

Secure Net Lease is a national leader in the acquisition and disposition of bonus depreciation-qualified Net Leased Assets. With over 500 convenience-store closings totaling $2B+, our platform delivers unmatched insight, execution, and access to on- and off-market opportunities.

Contact Secure Net Lease to learn how to take advantage of this powerful and permanent tax incentive.

Fresh off the plane from ICSC Vegas, hosts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead recap their whirlwind experience at the biggest event in retail real estate. From 11 back-to-back meetings to surprise tenant confrontations and booth turf politics, the team breaks down how Vegas delivered.

 

Key Topics Covered:

ICSC Chaos & Takeaways
Vegas ICSC was intense: 11+ meetings in a day, packed halls, and major fatigue. Sunday is no longer a warmup—it’s a full day of panels, keynotes (Nick Saban, Kendra Scott), and deal-making. Monday is wall-to-wall meetings; Tuesday cools off but still yields valuable connections.

Capital Meets Real Estate
The team logged $10–20M in potential pipeline, including LOIs on ground leases and BTS deals. A key win: reconnecting with a dark industrial tenant face-to-face.

Convention Floor Survival
Without booth space, the team squatted at the JLL booth—until learning booths were tracked for ROI. Next year’s tip: arrive Saturday, book early, or BYO lounge. Travel delays and late nights led to missed meetings and meltdowns (including a tragic midnight ice cream fail).

Tenant Trends
Cap rates across Chipotle, 7-Eleven, and Starbucks remain mostly steady. In-N-Out is back to expanding in markets like Dallas and Nashville. Dave’s Hot Chicken’s billion-dollar exit drew buzz, while McDonald’s CosMc’s experiment quietly flamed out.

Market Mood
Bonus depreciation remains a driver for sidelined buyers. Exchange activity is steady, but most are still cautious. ICSC attendance neared 25K—up from COVID lows, but still half of its peak.

 

While ICSC Vegas may not be back to its pre-COVID scale, it’s clearly regaining momentum. For capital providers, retailers, and developers alike, face-to-face time still wins—and the right meeting in the right hallway can make the whole trip worth it.

 

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In this episode, hosts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead deliver another fast-paced update on the retail real estate world. With spring chaos in full swing and ICSC Vegas on the horizon, they break down what’s really happening across the market—from deal friction to fried chicken.

 

Key Topics Covered:

Tenant Trends & Cap Rate Stability

• Starbucks inventory remains elevated, with slow absorption and ongoing pricing challenges in secondary markets.
• Chipotle listings hold steady, with cap rates ranging from 4.0% to 5.75%.
• 7-Eleven continues its build-to-suit expansion, with slight tightening in cap rates.

 

The FUD Factor & Market Psychology

• Market uncertainty—aka FUD (fear, uncertainty, doubt)—is stalling transactions across the board.
• Interest rate swings, tax reform unknowns, and tariff fears are shaking confidence.
• Developers report deals getting iced due to C-suite turnover and strategic shifts.

 

Distressed Assets & Leaseback Headaches

• CVS and Walgreens are subleasing dark stores at significantly lower rents.
• Portfolios are being packaged with both “gems and junk” to move underperforming assets.
• Notable deals include the Legacy West sale—yes, that Legacy West—and Washington Prime portfolios.

 

Restaurant Winners & Repositioning

• Top Performers: Cava, Chipotle, Wingstop, Haywire, Monarch, Nick & Sam’s
• Decliners: Starbucks, KFC, Applebee’s, Del Taco
• Chick-fil-A leads with $7.5M+ average unit volumes, driving relocations to improve throughput.

 

From Fidelity buying power centers to American Girl’s quiet rebound at Park Lane, the episode is full of tactical insight and real-world anecdotes. Whether it’s mall failures, retail backfills, or the psychology behind a paused deal, this one has it all—plus a few laughs.

 

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We are proud to announce that Bob Moorhead, Managing Partner and founding member of Secure Net Lease, has been named one of GlobeSt.’s Influencers in Net Lease Real Estate for 2025. Selected as one of only 19 distinguished professionals nationwide, Bob’s inclusion reflects his tremendous impact on the sector through visionary leadership, strategic innovation, and a remarkable track record of success.

Each year, GlobeSt. recognizes individuals, teams, and firms that have made meaningful contributions to the net lease field—those whose efforts have helped shape the industry’s present and future. Despite market fluctuations and a general slowdown in commercial real estate transactions, the net lease space continues to attract investor interest for its stability and returns. Within this dynamic landscape, Bob Moorhead has consistently demonstrated the influence and foresight necessary to thrive and lead.

With more than 1,635 completed transactions totaling over $7.4 billion in value since 2011, Bob has established Secure Net Lease as a dominant force in the net lease sector. Notably, he facilitated a $237 million sale-leaseback deal involving Allsup’s convenience stores, a key component of a broader $1 billion acquisition between Yesway and Allsup’s. His strategic leadership has also driven over $2.1 billion in convenience store transactions, partnering with major brands such as 7-Eleven, Wawa, Circle K, and QuikTrip.

Beyond dealmaking, Bob is a respected leader who actively shares market insights, including guidance on navigating interest rate shifts and identifying tax-driven opportunities. His early recognition of the benefits of Bonus Depreciation allowed Secure Net Lease to create tailored lease structures that delivered lower rents, higher property values, and significant tax savings.

Bob will be profiled on GlobeSt.com and honored at the annual Net Lease Spring conference in New York City on April 2, 2025. Please join us in congratulating Bob Moorhead on this well-deserved recognition!

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In this episode, hosts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead dive deep into the current dynamics shaping the commercial real estate landscape, particularly retail and industrial assets. They cover everything from market shifts and tenant performance to zoning challenges and creative lease strategies. 

Key Topics Covered:

Retail Tenant Performance

• Starbucks continues to oversaturate the market, but non-triple-net leases turn off investors.
• Chipotle remains a strong performer with long-term, true NNN leases.
• 7-Eleven is balancing its traditional convenience model with expansion into truck-stop formats.

Capital Markets & Bonus Depreciation

• 100% bonus depreciation may return by mid-year, potentially unlocking more buyer demand.
• Cap rates have widened slightly but remain attractive for credit tenants with long-term leases.

Distressed Assets & Reuse Strategies

• Walgreens/CVS closures present backfill challenges; some owners are exploring creative reuses.
• Bankruptcies like Party City and JoAnn are generating short-term leasing and redevelopment opportunities.

Winners & Losers in Retail Expansion

• Whataburger, Velvet Taco, Aldi, and Sprouts are growing, while chains like On The Border, Red Lobster, and Denny’s are shrinking or filing BK.

Industrial Hurdles & Zoning Friction

• Costly zoning overlays and surfacing requirements (especially in cities like Haltom and Frisco) complicate deals and increase timelines.
• Zoning-by-right assets are heavily favored in the current environment.

Urban Redevelopment

• Neiman Marcus’s downtown Dallas closure is a major cultural and retail loss.
• Redevelopment of aging malls like Willow Bend points to continued demand for mixed-use, residential, and experiential reuse.

This episode offers a wide-ranging and candid look at the evolving landscape of commercial real estate, blending market data, boots-on-the-ground deal experience, and plenty of real estate “war stories” that investors, brokers, and developers will appreciate.

 

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In this episode, hosts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead, along with guest Travis Alvarado from Velvet Taco and Matt Peterson from Estacado Interests, discuss current trends in retail and restaurant real estate while broadcasting live from the ICSC Red River event floor.

Key topics include:

• Retail & Restaurant Market Trends
  • Post-pandemic real estate availability
  • Omnichannel strategies and experiential retail
  • Rising construction and operational costs
• Velvet Taco’s Growth Strategy
  • Currently at 45 locations, expanding into Arizona, Florida, North Carolina, and Tennessee, with potential moves into Denver, Salt Lake City, and Las Vegas
  • Moving away from a rigid prototype model
  • Labor costs in high-wage states and how they are influencing market entry decisions
• Regional Market Differences
  • Dallas, Houston, and Austin offer more expansion flexibility
  • Chicago and other older cities pose challenges due to expensive construction and strict labor regulations
  • Brands like Starbucks and McDonald’s are moving into smaller markets
• The Role of ICSC & Industry Networking
  • Face-to-face deal-making at ICSC accelerates transactions
  • Networking opportunities help retailers, developers, and brokers align on real estate strategies and leasing deals

This episode highlights how adaptability, strategic flexibility, and in-person networking are crucial for success in the post-pandemic retail real estate market. Retailers and developers must stay ahead of trends, control costs, and be open to new market opportunities to thrive in 2025.

New episodes drop once a month, so tune in for your monthly dose of retail updates and commentary!

 

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In the second episode of Retail Recap, titled “The Final Checkout of 2024: Retail Insights,” hosts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead dive into the world of retail. From national trends to local developments, we’re here to give you the inside scoop on what’s driving the industry. 

Key topics include:

• Cap rates and supply trends from national retailers such as 7-Eleven, Chipotle, Starbucks, and others
• The rise of experiential retail
• The integration of advanced technologies such as AI
• Retailer expansion plans

The episode also examines the challenges retailers faced, including supply chain disruptions and shifting consumer behaviors, and discusses strategies employed to adapt to the rapidly evolving market landscape. This comprehensive analysis provides valuable insights for industry professionals and enthusiasts looking to understand the dynamic retail environment.

New episodes drop once a month, so tune in for your monthly dose of retail updates and commentary!

 

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Retail is constantly changing, and keeping up with its fast pace can be a challenge. Enter Retail ReCap, a new monthly podcast hosted by industry experts Jeremy Mercer, Will Narduzzi, Rob Franks, and Secure Net Lease’s Bob Moorhead. This series dives deep into the trends shaping the retail landscape, offering listeners valuable insights, thought-provoking analysis, and even a bit of fun.

In its inaugural episode, the podcast covers:

• Tenant Trends: Who’s expanding, who’s downsizing, and who’s filing for bankruptcy?
• Retail Stats: Examining occupancy rates, vacancy trends, and cap rates to understand the broader economic picture.
• Big Brand Spotlights: Following industry leaders like Starbucks, Walgreens, Chipotle, and 7/11 to see who’s thriving and dominating.
• Emerging Trends: From retention rates to innovative lease agreements and the rising popularity of mixed-use developments, the hosts explore what’s next for the industry.

With a tagline like “Who’s Up, Who’s Out, Who’s Next,” the podcast promises to keep you informed on the movers and shakers in retail. Whether you’re a seasoned industry professional, a curious observer, or someone with a passion for retail trends, Retail ReCap offers an engaging and insightful listening experience.

New episodes drop once a month, so tune in for your monthly dose of retail updates and commentary.

 

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