California-based Macerich has partnered with real estate services firm CBRE to fill vacant storefronts at the Fashion District, writes Jake Blumgart for The Philadelphia Inquirer.
There has been plenty of uncertainty regarding the future of the Fashion District after debuting just months before the pandemic, which drastically reduced foot traffic. The property’s then-owner, Philadelphia-based PREIT, declared bankruptcy and transferred its share of the mall to Macerich.
With the Philadelphia 76ers’ plans to buy and demolish half of the property for a new arena announced in 2022, Macerich did not rush to fill some vacancies amid an uncertain future. Now that the team has abandoned those plans, Macerich has recommitted to the struggling mall, which had an occupancy of 80 percent last year, well below the healthy level for shopping destinations of this size.
“Macerich is committed to Philadelphia and the Fashion District,” said Steven Gartner, executive vice president with CBRE’s Philadelphia office. “When the arena went away, Macerich said, ‘It’s time for us to get real and refocus.’”
He added that the main challenge for the Fashion District has been the narrative, noting that businesses operating within the mall are performing well and customers are satisfied.
“It’s a clean, safe, and modern shopping experience,” added Gartner.
Read more about the efforts to help the struggling Fashion District in The Philadelphia Inquirer.
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