LAS VEGAS—Not everyone at this year's rendition of RECon shared the same degree of enthusiasm over the retail rebound. Those more reticent types, such as Steve Jaffe, executive vice president of GlobeSt.com Thought Leader BH Properties, are moving more cautiously, dipping their toe in, as Jaffe put it. Nevertheless, he's confident enough to see more buying activity coming, especially in BH's sweet spot, the value-add play.

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GlobeSt.com: So what's the major headline from RECon for BH?

Steve Jaffe: It's what I'll refer to as cautious optimism. I didn't get a headcount, but this year felt very active. I like to think that our industry won't get prematurely excited over a little bit of positive momentum – the lessons of a few years past should still be fresh in our minds. It's still unclear how the fundamental shifts in retailing will impact the bricks and mortar side of the business long term. Our portfolio is pretty evenly split—retail, office, industrial and multifamily— in 2010, 2011 and 2012 we were pretty much focused on multi-family but now we're getting back involved in retail on an acquisition basis.

GlobeSt.com: You're dipping your toe back into the retail waters?

Jaffe: We're not sure if the water is hot or cold. We'll see how it goes.

GlobeSt.com: A lot of people we've talked with share your skepticism, despite the exuberance we're hearing.

Jaffe: It's been different the last couple of years here at ICSC. I've been coming here 20 years, and every year there would be something new and different. I haven't seen that this year. For BH Properties, the focus is a lot more on smaller-space occupancy, more strip center-focused. But the dynamic I have come to expect to see is some new, exciting retail concept. I haven't seen that kind of new leasing driver to account for the excitement. To me the activity seems more centered on the economic recovery. Our types of centers are typically service oriented – we believe that those types of uses are somewhat recession proof. Our tenancy is driven by that and we're trying to bring mom-and-pops back into our strip centers.

GlobeSt.com: Does that mean that by necessity it's got to be a needs-based play?

Jaffe: I think you're seeing some change in the way people regard strip centers and what they want in strip centers, and I think the downturn contributed a lot to that. But our focus and our success is in needs-driven convenience, an inexpensive restaurant, a Goodwill store, or a dry cleaner.

GlobeSt.com: So when, God help us, we meet here for RECon '15, what will be the headline as you see it?

Jaffe: For the value-add sector in 2015, we're going to see a lot more institutional money. As cap rates become more challenging for investors, they'll start to diversify and will push institutional investors in the 'value' sector away from core – at least as part of the investment strategy. But our returns are not driven the same way funds are. Overall, I think you'll see the economy continue to plug along and an incremental confidence increase.

GlobeSt.com: You don't sound overly exuberant.

Jaffe: I'm always an optimist and confident. I'm a booster, but I'm not crazy.