Net Lease News

B+E Weekly Newsletter

February 27 – March 4, 2024

MARKET

MARCH FED MEETING IS EXPECTED TO LEAVE INTEREST RATES UNCHANGED | Forbes

• Fixed income markets expect the U.S. Federal Reserve to hold rates steady at the conclusion of its next meeting on March 20.
• Both Fed projections and market expectations see interest rates in 2024 but weighted to the second half of the year. Currently, markets expect approximately three to four cuts by December 2024. That implies short-term rates ending the year a little more than 4%.
• Currently, markets believe the first rate cut will most likely be in June, but it could be as early as May or as late as July. After the March meeting, the markets should have a more accurate view of both the timing of the first cut and how many cuts to expect in 2024.

RETAIL

MACY’S TO SHUTTER 150 STORES | Bisnow

• Macy’s will close 150 stores nationwide over the next three years as part of a plan meant to right the ship for the storied retailer, which has struggled in recent years, particularly since the pandemic.
• The first 50 stores are scheduled to close by the end of the fiscal year, with the rest of the closures occurring by the end of 2026. The statement also mentioned the monetization of $600M to $750M of assets by the end of 2026, indicating the potential sale of properties.
• The impacted stores account for 25% of the company’s square footage but just 10% of sales.

EL CAR WASH RECOGNIZED AS ONE OF THE FASTEST-GROWING PRIVATE COMPANIES IN SOUTHEAST | Carwash.com

• Between 2020 and 2022, El Car Wash had an average annual growth rate of 115% and added 100+ jobs. The company opened 20+ new locations in 2023, with another 20+ slated to open this year.
• The company is an active community leader through its partnerships with key local organizations such as Baptist Health, Miami HEAT, Florida Panthers, Zoo Miami, local police and fire departments, schools, and more.
• El Car Wash said the company continues to balance new developments consistent with the company’s M&A strategy of entering new markets by purchasing premier sites.