Brian Kosoy is Managing Principal and Chief Executive Officer of Sterling Organization, which he co-founded in 2007 — a vertically integrated retail real estate firm.
He started the firm directly into the financial crisis and spent the following fifteen years in a sector institutional capital was abandoning. Sterling now owns more than 80 centres across 14 to 15 million square feet.
Katie and Brian trace how retail arrived where it is — from the department store to the category killer to the smartphone — and where the growth is now: legacy grocery leases well below market, small shop rents with room to run, and boxes coming free for the first time in decades.
They also talk about why he believes that, by and large, cap rates on institutional-quality real estate assets follow capital flows rather than interest rates, and why he thinks his LPs are more his bosses than limited partners.