Plaza Retail REIT announced this month that Jason Parravano would be the company’s next chief executive and president, taking the reins from co-founder Michael Zakuta, who served as CEO for 25 years.
Parravano has been serving as COO since joining Plaza in January, and he has used the time to get up to speed on all aspects of the business, including investment, leasing, operations, asset management, development, redevelopment and construction activities. He will officially assume the top role on Jan. 2.
Green Street News sat down with Parravano to get his perspective on the shopping centre sector and where he sees Plaza headed.
What drove the leadership change at Plaza?
The board demonstrated exemplary succession planning. Recognizing the need for change is crucial for revitalizing a business. This was a strategic move by the board and Michael Zakuta to ensure continued success.
What is your view on the open-air strip space right now?
We’re firmly in the non-discretionary sector, necessitating ongoing investment to meet tenant demands. We’ve weathered Covid’s challenges, and now we are facing higher interest rates and inflation. Our tenants and business remains resilient.
Has the rise of e-commerce affected Plaza’s strategy in recent years?
While e-commerce has had an impact, particularly for fashion retail, we continue to see a strong demand for value and grocery retail. An influx of population has led to in increase in consumer demand and sales.
Value retail thrives on the treasure hunt experience, with inventory turnover creating a compelling reason to visit. Our diverse tenant mix keeps our properties vibrant, with minimal vacancy with the expertise of a proactive leasing team.
What markets are most compelling for you right now? Are you planning to enter any new ones?
We’re adept at identifying opportunities by listening to tenant demands rather than targeting specific markets. While cities like Toronto, Montréal and Vancouver are competitive, we remain opportunistic in our approach.
What is your top priority in your new role?
Seamless transition is key when replacing a founder. Understanding the business and fostering connections with our people is vital. With offices and people across Fredericton, Montréal, Halifax, Toronto, Charlottetown, Newfoundland and more, being present and approachable is a priority. I’ve done my fair share of travel this year to be present where we operate.
Embracing the challenge of leadership transition and breaking old habits to make people comfortable by reaching out is key. Managing 9m sq ft and 225 properties across Canada is no small feat. The open-air strip is resilient, and retail remains a strong asset class, despite the challenges of creating new retail spaces.
