Brixmor Says Tenants See Retail Disruption as Opportunity for New Store Openings

James Taylor, President and CEO of Brixmor Property Group Inc . (NYSE: BRX), participated in a video interview at Nareit’s REITweek: 2023 Investor Conference, held in New York June 6-8.

Taylor discussed how Brixmor is positioned to respond to rising levels of tenant disruption and macro volatility, what he expects to see in terms of portfolio recycling and transaction activity for the rest of 2023, and whether he sees potential to increase density at Brixmor’s properties.

During the interview, Taylor noted that:

• The open air space is seeing “great” supply and demand fundamentals. Many of Brixmor’s tenants see the expected retail disruption as an opportunity to commit to new store openings to fill their pipeline.
• There has been little new supply in the open air space for the last 10-15 years.
• “As a platform, we have a lot of embedded growth that I think is going to position us to outperform.”
• “There’s a gap between seller pricing expectations and where the cost of capital has moved. That will correct itself over time. I do believe the public markets have over-corrected a bit…as private owners in particular face a more constrained credit market it presents an opportunity for public companies like ourselves to step in and provide that liquidity.”
• Brixmor sees opportunity to add density through using parts of its large parking lots for additional retail, as well as converting existing retail space to “higher and better” uses, in certain instances.