Macerich's (MAC) Kings Plaza Thrives on New Leases, Renovations
In the ever-evolving landscape of retail, adaptability and innovation are the key factors for success, and Macerich MAC has demonstrated these qualities with the transformation of Kings Plaza in Brooklyn. The recent leasing successes and targeted renovations have not only revitalized the shopping center but also positioned Macerich as a dominant player in the New York City metro area.
The highlight of this transformation is the fully remerchandised former Sears space at Kings Plaza, Brooklyn's only enclosed mall. Macerich's strategic leasing decisions have attracted prominent brands, and the stores now open in the former Sears box include a three-level Target TGT, Primark, Zara and Burlington. These new stores are poised to deliver a combined annual sales figure nearly eight times higher than the previous Sears store.
Eric Bunyan, the senior vice president of Leasing, East Region, for Macerich, emphasized the significance of these developments. He stated, “The tremendous success of the new Target at Kings Plaza, combined with strong performance for Primark, Zara and Burlington, each of which have been open since 2018 in the former Sears location, demonstrates the power and promise of Kings Plaza, Macerich’s well-located, fully enclosed retail center in Brooklyn.”
Bunyan's enthusiasm is well-founded as these national brands selecting Kings Plaza underscore its appeal to diverse demographics, including affluent shoppers from the dynamic trade area.
Macerich's approach to leasing, which focuses on creating properties that cater to a broader range of consumer needs, has proven effective. The addition of popular brands like Shake Shack and Ashley Furniture further enhances the shopping experience. Moreover, Macerich is exploring opportunities for a 50,000-square-foot location at the prime corner of Flatbush Avenue and Avenue U.
The success of Kings Plaza is not solely attributable to leasing changes. Targeted renovations have also played a pivotal role. MAC's commitment to enhancing the customer experience is evident in the complete transformation of the front of Kings Plaza along Flatbush Avenue in 2018. This redevelopment included the former Sears store, and it served as a catalyst for the mall's resurgence.
Recent improvements, such as brightening and lightening the attached parking deck, along with upgrades to lighting, furnishings and flooring on the center's second level, have further solidified Kings Plaza as one of the most successful shopping centers in the market.
Kings Plaza, a 1.1 million-square-foot retail and dining destination with a 10-level parking garage, has an impressive lineup of tenants, including Target, Primark, Zara, Burlington, Lowe's, Ashley Furniture, Sephora and many others. This diverse mix of retailers caters to a wide range of consumer preferences, making Kings Plaza a go-to destination for shopping and dining.
Nevertheless, dwindling footfall, store closures and retailer bankruptcies were bothering the retail real estate industry in the past, and social distancing amid the pandemic further deteriorated the fundamentals, affecting retail REITs like Macerich, Simon Property Group SPG and Federal Realty FRT, among others. However, the renewed enthusiasm of shoppers seeking exclusive in-store shopping experiences after the pandemic has revived the fundamentals of this asset category, and Macerich, Simon Property and Federal Realty remain well-poised to benefit from strategic renovations and remerchandising.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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