Macerich Puts ‘Transitional’ Year Behind it as Leasing Remains Focus

It may not be as dramatic as dispositions and retailer bankruptcies, but mall operator’s Macerich’s big story for 2026 will be leasing. 

Jack Hsieh, president and CEO of the Santa Monica-based company, told analysts during Wednesday’s quarterly update the “heavy lifting” to de-risk Macerich’s turnaround plan, named Path Forward, is about complete. 

Signs of that were clear as the business exited 2025. 

Locally last year, the company rid itself of slower-performing malls, such as Lakewood Center and Santa Monica Place, while pressing the gas on top assets like Los Cerritos Center. 

The company hired David Keane as executive vice president of investments earlier this year as it contemplates acquisitions. Keane brings expertise as Washington Prime Group’s former chief investment officer and executive vice president. He was also at Brookfield Properties Retail and General Growth Properties. 

In the near term, Hsieh said future mall purchases would focus on “value-add” properties where the company can come in and make simple improvements to raise rents — as opposed to doing a largescale redevelopment. 

To fund any future deals, Macerich would focus on issuing equity and working with a capital partner. 

“I think we’ve gotten more, candidly, inbound interest from capital partners to do transactions with on the acquisition side,” Hsieh said. “One thing we said is we want to simplify the business.” 

Consumer Trends

Under the roofs of the company’s malls, customer spending is playing out differently across income levels. 

While Hsieh said retailers have indicated there’s demand, it’s either skewing more promotional or more intentional. 

There are some tailwinds in the coming months and years. That includes tax refunds, in addition to the FIFA World Cup this summer and Olympics in 2028. 

Luxury, which comprises a small portion of the Macerich portfolio and mostly at Scottsdale Fashion Square, was up 5.5 percent last year. That’s only among the properties Macerich considers part of its “Go Forward” portfolio and does not include those in line to be sold off. 

“The issue that Saks is going through, I think is an interesting opportunity as it relates to Macy’s, Nordstrom [retailers] being able to really re-look at how they’re thinking about luxury items as well as just luxury demand in general,” Hsieh said. 

Hsieh was referencing Saks Global’s January Chapter 11 bankruptcy filing, with the struggles of the parent to Saks Fifth Avenue and Neiman Marcus a possible lesson for retailers sharing similar customer bases. 

Inking Leases

How those trends have translated to leasing has bore out in robust demand, Macerich executives said. 

“There’s real demand for space right now that we have,” Hsieh said. “The remaining thing that strikes me, which is so interesting, is the retail store… is still the most profitable lane for these retailers right now. They have omnichannel, but their physical stores are the most profitable areas and lines of business. And the fact that we have no real new supply in the kinds of real estate assets that we compete in, I think is good for what we’re trying to do right now.” 

The company continues to see leasing activity from companies such as Apple, Zara, Aritzia, Lululemon, Alo Yoga, American Eagle, Abercrombie & Fitch, Gorjana and Warby Parker. 

For the retailers that are opening up in Macerich centers, those malls are seeing ramps in foot traffic. 

Scheels, for example, which opened at the Chandler Fashion Center in Arizona, helped drive a 21 percent increase in traffic at that mall when it opened in 2023 to replace a former Nordstrom. That impact has only continued at that mall, Hsieh confirmed.

Tysons Corner Center in Virginia saw fourth-quarter traffic increase 16 percent with the opening of retailers such as entertainment venue Level99 and Skims.

Overall, Macerich ended 2025 with 7.1 million in new or renewal lease deals signed, which was a spike of 85 percent over the prior year. 

Total revenue in the fourth quarter was $261.7 million, down 4.4 percent from a year ago. The company recorded a net loss of $18.8 million, due to losses on property sales or write-downs as it sold underperforming malls. That was still narrowed from a $219.6 million loss a year earlier.