Welcome back.
I’m Ray Kang, CCIM — a commercial real estate broker working with landlords, owners, and investors of strip centers across Central and South Texas.
What I focus on is property-specific advisory: helping owners understand what’s actually happening in the economy and retail market so they can make better decisions, protect value, and improve long-term returns.
This weekly wrap-up is designed to keep an eye on the U.S. consumer and retail real estate, without you having to chase headlines.
Let’s get into it.
Macro News — What’s Shifting Under the Surface
Business activity is holding up, but hiring is paused
According to S&P Global, overall business activity picked up slightly in January, reaching a two-month high. The economy is still expanding — but at a slower pace than last fall.
Manufacturing output improved modestly, yet new orders weakened and foreign demand fell to its lowest level since April. More notably, companies added very few new employees for the second month in a row.
Businesses cited rising costs, weak sales visibility, and uncertainty as reasons for holding back. Tariffs are also re-emerging as a pressure point, particularly for manufacturers facing higher input costs.
What this means:
The economy isn’t contracting, but companies are prioritizing efficiency and cost control over growth through hiring — a theme that matters for wage growth and retail demand.
Gold prices are surging — a signal of unease
Gold prices recently crossed $5,000 an ounce, capping a rally that saw prices jump 65% in 2025.
Gold typically rises when confidence is shaky. What’s different this time is that central banks are major buyers, reducing reliance on the U.S. dollar amid concerns about debt levels, tariffs, political pressure on the Federal Reserve, and global instability.
For consumers, this shows up in higher jewelry prices. At a broader level, gold is behaving less like a luxury asset and more like insurance.
What this means:
Even with steady spending, underlying confidence remains fragile — and investors are hedging against uncertainty.
Interest rates may stay higher for longer
At its January meeting, the Federal Reserve held its benchmark rate steady at 3.50%–3.75%, after cutting rates by 0.75% in the second half of 2025.
Policymakers believe the economy is stable enough to pause further cuts. Inflation has cooled but remains above target, and officials don’t see urgency to move quickly.
What this means:
Borrowing costs for mortgages, credit cards, and commercial real estate debt may remain elevated longer than many expected — reinforcing the importance of careful refinancing and capital planning.
Productivity is rising — and that explains slower hiring
New data from the Bureau of Labor Statistics shows labor productivity jumped nearly 5%, the fastest increase in two years. Businesses are producing more with fewer hours worked, pushing labor costs down.
That efficiency helps explain why companies are comfortable slowing hiring — they’re growing output without adding staff.
For workers, however, pay hasn’t kept pace with productivity gains, meaning purchasing power slipped during the quarter.
Layoffs remain historically low
Initial unemployment claims and continuing claims both remain near multi-year lows. Hiring may be slow, but widespread layoffs are not occurring.
What this means:
Job security is relatively strong, supporting steady — though cautious — consumer spending.
🔗 Source:
https://www.dol.gov/ui/data.pdf
Retail News — What This Means for Retail Real Estate
Retail real estate momentum is building
According to ICSC, grocery-anchored and neighborhood shopping centers are experiencing some of the strongest fundamentals seen in nearly a decade (excluding malls).
Capital that sat on the sidelines over the past two years is beginning to re-enter the market, lenders are becoming more flexible, and transaction volume is expected to rise in 2026.
Owner takeaway:
Quality strip centers are seeing stronger pricing support and improved liquidity — particularly stabilized, necessity-based assets.
🔗 Source:
https://www.icsc.com/news-and-views/icsc-exchange/11-retail-real-estate-predictions-for-2026
Store openings are outpacing closures
CoStar reports that store openings have exceeded closures early in 2026, reinforcing the idea that physical retail demand hasn’t disappeared — it has become more selective.
Well-located community and neighborhood centers are benefiting most.
🔗 Source:
https://www.costar.com/article/2021483104/us-store-openings-are-expected-to-see-an-uptick-this-year
Jersey Mike’s explores a $12B IPO
Jersey Mike’s is reportedly exploring a public offering at a valuation around $12 billion — a strong signal for strip center owners.
Brands with strong unit economics, off-premise sales, and disciplined site selection are attracting serious capital, even in a cautious consumer environment.
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Landlord Insight — Leasing vs. Positioning
A belief I still see holding owners back:
“Leasing agents just fill space.”
Filling a vacancy is not the same as positioning a center.
Two fully leased properties can produce very different results depending on:
Tenant mix
Traffic drivers
Rent growth potential
Buyer perception
The difference isn’t just management — it’s strategic advisory.
When leasing decisions are tied to financial analysis, market research, and long-term positioning, cash flow improves — and value follows.
New belief to consider:
Strategic leasing builds value.
If you’re starting to notice that “just leasing” isn’t moving the needle, that’s often the first sign it’s time for a deeper conversation.
Final Thoughts
That’s this week’s Retail Weekend Wrap-Up.
If you want help thinking through leasing strategy, positioning, or long-term value for your property, you’re more than welcome to reach out. I’d be ecstatic to bring you something of value.
See you next weekend.
📞 Want a 1:1 Look at Your Center?
If you want a clearer understanding of where your strip center stands today — or what opportunities you might be missing — feel free to reach out.
I’d be more than happy to walk through it with you.
👋 Until Next Week
Thanks for reading. You’re always welcome to reach out with any questions or anything you need to better understand your investment. I’m here to help you make well-informed decisions with confidence.
— Ray Kang CCIM
Strip Center Investment Sales & Advisory
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