MB547: Retail Isn't Dead: How Andy Weiner Buys Shopping Centers Nobody Wants and Turns Them Into Cash Flow - with Andy Weiner

In this episode, Michael Blank welcomes Andy Weiner, founder of RockStep Capital, to discuss the opportunities in retail real estate and shopping center investing. Drawing on decades of experience in retail, Andy shares how the collapse of his family’s retail business shaped his approach to operations, attention to detail, and building a successful investment company. Today, RockStep Capital owns nearly 10 million square feet of retail space across 11 states, focusing on secondary and tertiary markets where shopping centers can deliver reliable cash flow. Andy explains how retail has rebounded from the challenges of e-commerce and COVID-19, why favorable supply-and-demand dynamics are creating opportunities, and how his firm navigated a period when every loan was in default. He also discusses his distinctive approach to partnering with local investors, using AI to identify promising markets, and building a high-performance company culture around 26 guiding principles called “Rock Steps.” Whether you invest in multifamily or want to diversify into another asset class, this conversation offers a fresh perspective on retail real estate and finding opportunities in overlooked markets.

Key Takeaways

• Learn from Failure and Operate at an A-Plus Level: Andy’s family operated a retail chain with more than 150 stores, but ultimately struggled to compete with Walmart. The experience taught him that success requires exceptional operations, attention to detail, and effective inventory management—and that even strong operators must adapt to changing market conditions.
• Understand the Changing Retail Market: Retail has benefited from improved supply-and-demand dynamics, positive leverage, and retailers that have learned to compete with e-commerce. Andy explains how surviving retailers are expanding while limited new supply creates opportunities for well-positioned shopping centers.
• Focus on Cash Flow in Underserved Markets: RockStep Capital targets secondary and tertiary markets with strong economic drivers, such as universities, military bases, hospitals, tourism, and major employers. Andy emphasizes buying properties at attractive yields and prioritizing stable net operating income over the appeal of high-profile markets.
• Use Local Investors to Strengthen Deals: Andy requires local limited partners who understand the communities where RockStep invests. These relationships can provide valuable local insight, help secure incentives and financing, uncover redevelopment opportunities, and potentially create future buyers for the properties.
• Use AI to Identify Opportunities at Scale: RockStep uses AI to analyze retail expansion plans, evaluate markets, and identify promising investment opportunities. Andy stresses that predictive models must still be verified directly with retailers, combining technology with real-world research and experienced judgment.
• Build a High-Performance Culture Around Shared Values: RockStep’s 26 “Rock Steps” are detailed principles that guide employee behavior, decision-making, and relationships with tenants, investors, lenders, and communities. Through regular company-wide discussions, Andy reinforces accountability, trust, adaptability, and a commitment to providing solutions.

Connect with Guest

• RockStep Capital: https://rockstep.com
• RockStep Capital Learning Center: Visit rockstep.com and explore the Learning Center for educational resources on shopping center investing, commercial real estate fundamentals, terminology, and risk.
• YouTube: The Shopping Center Channel — search for “The Shopping Center Channel” on YouTube for educational videos about retail real estate and shopping center investing.