Michael Phillips

Are you expecting an influx of market activity in the first half of 2026 if rates continue to go down?

We’re seeing encouraging signs. Lower rates could help bridge the bid/ask gap that’s kept many sellers on the sidelines. We believe there’s significant capital waiting to deploy, and we’re having more substantive conversations with both buyers and sellers. The fundamentals in our core sectors — particularly well-located mixed-use and experiential retail — remain strong. 

We’re also seeing lenders becoming more flexible, which is critical for transaction velocity. If rates continue their downward trajectory, we believe momentum could build through the first half of 2026, especially for quality assets in unique urban locations where demand fundamentals never really weakened.  

How do European investors feel about investing in the U.S. right now?

Obviously, there has been a bit of volatility this year, but we’re already seeing things begin to stabilize. At the end of the day, real estate is a long-term investment, and we treat it as such. It takes time to build the kinds of places that we do, and the benefit of that is being able to look beyond temporary volatility. 

European investors, in our experience, are really disciplined in this way and can see opportunity in the U.S. right now. They appreciate the depth and liquidity of U.S. markets, the strength of the dollar, and the demographic tailwinds in our target cities. The fundamentals — population growth, consumer spending, urban migration — remain compelling despite near-term political or economic noise.

How do Europe and the U.S. compare right now in terms of real estate investment opportunities?

There are opportunities on both sides of the Atlantic, but I would say that demand for Europe has accelerated recently across a number of product types. Borrowing rates remain challenging to the movement of capital, but retail and office are sectors that have renewed interest after COVID. The U.S. offers scale and growth that’s harder to find in Europe, while Europe generally offers more regional diversity and has a growing demand for holistic real estate concepts.

How is your retail portfolio looking in general? 

We’re seeing robust leasing activity and strong foot traffic, along with significant year-over-year sales increases at some of our retail locations like Buckhead Village in Atlanta. We’re continuing to see that brick-and-mortar stores remain essential for brands, especially when they’re in the right locations and are located alongside other complementary brands.

Just one recent example of retail success for us is the expansion of the British womenswear brand Boden, which has decided to locate its first U.S. store at one of our suburban Atlanta properties. We’re seeing more first-to-market deals across the board, which is not only exciting to us but to the state of the market in general.

The key for us has been focusing on creating destinations rather than just spaces to lease — places where retail is integrated with dining, culture and community. That approach is resonating with both tenants and consumers. 

How do you see investment opportunities shaping up in New York? Are you currently doing business here?

We are in the final stages of our $550 million redevelopment of One Times Square, and we’re seeing strong momentum throughout our portfolio — from the AI leasing wave at Industry City to American Eagle’s significant expansion at 63 Madison Avenue to new offerings at both Pier 57 and Chelsea Market. 

Our acquisition of North American Properties’ Atlanta subsidiary last year expanded our metro footprint, bringing Ridge Hill, a retail destination in Yonkers, N.Y., and Riverton, a ground-up mixed-use development in New Jersey, into the fold. We’re constantly pursuing creative transaction prospects — such as our opportunistic investment earlier this year at Hudson House, a multi-phased multifamily development in New Jersey.

Lighting Round:

Mamdani, Cuomo, Adams — Friend, mute, unfollow?
Friend them all.

More excited about — an interest rate cut or Taylor Swift’s engagement?

Interest rate cut.

Last vacation and where?
This summer I went sailing in Italy and was able to attend the canonizations of Carlo Acutis and Pier Giorgio Frassati in Rome.

You appear on the kisscam at a concert. Who’s performing?
Fleet Foxes.

If Stephen Starr asked you which restaurant he should next reopen, what would it be?
Le Perigord or La Grenouille could be good candidates to build on the success of Maxime’s on the Upper East Side.