Kenneth Bernstein on customer acquisition cost

About Kenneth Bernstein

Kenneth Bernstein, president and CEO of Acadia Realty Trust, has discussed the evolution of retail real estate in several recent interviews. He stated that the COVID-19 pandemic was a "body blow" to the industry, but noted that by late 2021 rent collections in Acadia's portfolio had recovered to 90%. Bernstein described the shift toward omnichannel retailing, saying that by 2019 he felt "online was part of omni-channel" and that "bricks and mortar retail is the most profitable channel in an omnichannel world." He also commented on the economics of e-commerce, noting that "customer acquisition is not free" and that free delivery and returns created costs that retailers are now pushing back against. Bernstein has also addressed the current investment environment, saying that "our industry is interest rate capital dependent" and that "investing right now is tricky because borrowing costs have risen significantly." He described Acadia's strategy of focusing on "dense High Street retail" in markets such as Washington D.C. to Boston and downtown Chicago, and using a dual platform of public and private capital. Bernstein emphasized the importance of "common sense" in underwriting, advising that investors should "put your phone and calculator aside initially" and understand the rationale behind a deal. He also outlined four principles he said have guided his company for 25 years: "Integrity, intensity, innovation, and intelligence."

Profile compiled from Kenneth Bernstein's verified public interviews and appearances. See all quotes & transcripts →