Kierland Commons Sees Huge Boost in Sales

Article originally posted on Phoenix Business Journal on May 13, 2019
Kierland Commons

Retail is a tough industry to be in right now, but there are some shopping centers around the Valley succeeding while others can’t.

Kierland Commons, a lifestyle retail center on the border of Scottsdale and Phoenix, was among the top-performing malls in the country to begin this year.

Kierland is owned by Macerich Co. (NYSE: MAC), a Santa Monica, California-based real estate investment trust that owns and operates some of the country’s and Valley’s largest malls.

At the end of first quarter 2019, Kierland reported sales per foot of $1,281, which is fifth-highest in all of Macerich’s portfolio and the highest in Arizona.

The company released its first quarter earnings last week. As part of the report, Macerich published sales per square foot and occupancy rate data for its 40 top-performing properties. Eight of those properties are in the Valley.

Kierland is the smallest center Macerich owns in the Valley, with a gross leasable area of 437,000 square feet. For comparison, Scottsdale Fashion Square has 1.8 million square feet of gross leasable area.

With a smaller size, Kierland’s performance could be written off, but when compared to its past sales, the mall has still seen dramatic increases. From 2016 to 2019, sales per square foot have increased more than 93% from $661 to $1,281.

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