Michael Carroll, CEO of Brixmor Property Group (NYSE: BRX), joined REIT.com for a CEO Spotlight video interview during REITWeek 2015: NAREIT’s Investor Forum, held in New York.
Carroll discussed Brixmor’s efforts to “perfect [its] merchandising mix” of tenants.
“We’ve been focused on trying to bring in best-in-class anchors to drive more sales and traffic,” Carroll said. “That leads to better follow-on shop leasing, to more appealing tenants and stronger rates.”
Brixmor and Starbucks are currently working on a pilot program involving drive-thru/walk-up storefronts for the coffee stores. Carroll noted that Brixmor constantly searches for new uses for its properties. The Starbucks pilot project fits with the push for densification of Brixmor’s existing assets, he said.
“It takes what was previously parking area and allows us to create new space,” Carroll said. “We continue to look for other uses like that.”
The lack of new supply in the retail sector is having a “big impact” on Brixmor’s strategic thinking, according to Carroll. He pointed out that the realization in early 2014 that new development would be slow to come to market caused the company to re-evaluate its business plan. That effort led to the focus on initiatives such as densification, Carroll said.