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Brixmor CEO says open-air retail tailwinds are driving $1.5B reinvestment
Brixmor has over $1.0 billion in its active and future reinvestment pipeline, and the company said second-quarter small shop occupancy hit a new record.
Brixmor Property Group CEO Brian Finnegan said the REIT is positioning its portfolio to benefit from a favorable backdrop for open-air retail, citing consumer resilience and strong tenant performance, according to an interview published by Nareit.
Finnegan pointed to second-quarter operational momentum, saying small shop occupancy reached a new record. He attributed the success in smaller spaces to demand for more suburban restaurant and service use, along with retailer interest in the traffic from those categories.
He also said Brixmor has benefited from elevated brands including Sephora, Warby Parker, Williams Sonoma, and Pottery Barn, and that visits to Brixmor centers rose almost 4% last month. Finnegan added that the company’s off-price tenants, including TJX, Burlington, and Ross Stores, align with consumers who may be trading down.
On reinvestment, Finnegan said Brixmor has invested more than $1.5 billion in the portfolio since launching its reinvestment program. He added that the company has over $1.0 billion in its active and future pipeline, supported by municipalities becoming more willing to allow additional density and building in parking lots.