iPhones Responsible for REIT Malls’ Record Numbers, Says GGP

Hey, online shopping, upscale malls aren’t going anywhere thanks to tech tenants like Apple, Microsoft and Telsa, the Wall Street Journal reports. Upward trending mall sales hit $478/SF last year, according to ICSC, while REIT malls (more luxury and urban infill) reached a record $550/SF in sales in Q3 of 2014, well over the last high, $450/SF, in 2007 (Green Street Advisors' data). For mega-landlord GGP, last September’s iPhone 6 unveiling spurred a 6.8% increase in monthly sales that would have been only 4% otherwise, CEO Sandeep Mathrani has said.

In addition to being early adopters of entertainment as part of the mall shopping experience, tech tenants help the bottom line with their pricey wares and profit-sharing lease structures (something you don’t see with anchors). They’ve also paid dividends, literally, as shopping center REITs returned 35% in 2014 to investors (in third place behind multifamily and healthcare), NAREIT data shows.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Chicago Newsletters
Related Stories

Philly Retail Momentum Spills From Rittenhouse Into Northern Liberties

Mars Factory Overhaul Stalls As Candymaker's Chicago Expansion Accelerates

Forget Buildings, Retailers Are Leasing Environments

Immigration Crackdowns Dealt LA Businesses A Multimillion‑Dollar Blow

Mamdani Adds Millions To Program Helping Retailers Negotiate With Landlords

While Chicago Development Stalls, Fulton Market Keeps Building

AI Has Saved Time But Muddied Traffic Data For CRE Marketing Execs

How JLL Uses Experiences To Give Retail Customers 'A Reason To Be There'

Culver Commons To Bring New Dining, Retail Options To Bustling Suburban Los Angeles Location

Sony Reopening Hollywood ArcLight, Cinerama Dome Theaters

Amazon Close To Deal For Goose Island Warehouse: The Chicago Deal Sheet

Cracker Barrel Closes Sale-Leaseback On 26 Stores, Sells 35 Maple Street Biscuit Restaurants