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Brixmor CEO says $1.5B investment supports open-air retail repositioning
Finnegan said Brixmor has invested more than $1.5 billion since starting its reinvestment program, and it has over $1 billion in active and future pipeline for additional projects.
Brixmor Property Group CEO Brian Finnegan told the REIT Report podcast that open-air retail demand remains supported by consumer resilience and strong tenant performance, and that the REIT is repositioning assets to take advantage of that backdrop. Finnegan said small shop occupancy reached a new record in the second quarter.
He attributed Brixmor’s small shop success to shoppers demanding more services and restaurant options in suburban areas, which the company is using to attract operators for its shopping centers. Finnegan also pointed to retailer visibility from elevated brands such as Sephora, Warby Parker, Williams Sonoma, and Pottery Barn.
Finnegan said visits to Brixmor centers rose almost 4% last month, while retailers have continued to note consumer resiliency even amid some trading down in purchasing decisions. He added that value-oriented tenants, including TJX, Burlington, and Ross Stores, benefit from that trend.
On capital deployment, Finnegan said Brixmor has brought a record number of outparcels into its reinvestment pipeline, helped by municipalities being more willing to allow additional density and construction in parking lots. He said the REIT has invested more than $1.5 billion in the portfolio since it began the reinvestment program and has over $1 billion in its active and future pipeline.