Interest Already Strong for Mall Expansion

TIGARD, OR-Strong early interest is being shown by retailers in the Macerich Co.’s planned 80,000-sf expansion of the 1.3-million-sf Washington Square Mall here. The project is set to start next February after two new parking decks are complete, with the opening of the new space occurring prior to the 2005 holiday shopping season.The two-level expansion is designed to accommodate 28 new signature retailers. Washington Square property manager Jack Reardon tells GlobeSt.com there are no signed leases, but there are leases out for signature for “most” of the space. The would-be tenants are “mostly national” retailers, he says. The two new parking decks are being developed because the mall expansion will occur between the Nordstrom and Meier & Frank department stores, which is currently surface parking. The new decks will hold 1,000 parking spaces. The new mall space will actually total about 100,000 sf, but Reardon says Macerich is not going to build out the second level of space right away.The names of prospective new tenants are being held close to the vest, but Macerich assistant vice president of leasing Ed Hopwood says the new space will be used to enhance Washington Square’s fashion offering, including women’s and junior’s ready-to-wear. Apparel and shoes already rank among the mall’s top performing categories, with sales per sf standing at a respective $448 and $437, he notes. The company also hopes to attract more home furnishings, lifestyle and major restaurant tenants.The mall presently generates total annual volume of approximately $500 million and average specialty store sales of almost $600 per sf. Washington Square currently houses among its 122 stores the largest Nordstrom in Oregon, JCPenney, Sears, Mervyn’s, and one of the top performing branches in the Meier & Frank chain. Other prominent merchants include Abercrombie & Fitch, Ann Taylor, Banana Republic, Coach, the Gap, J. Crew, Pottery Barn and Talbots. Opened in 1974, the mall serves an overall trade area within a 10-mile radius of approximately 827,000 residents in 342,000 households. Average household income in this area exceeds $77,000, with 21.1% of households earning in excess of $100,000. Within five miles of the site, there are approximately 291,000 residents in 119,000 households. Average household income is nearly $83,000, with 25% earning better than $100,000. This is also a highly educated market: 37.7% of adults attended four-plus years of college in the five-mile ring and 32.1% in the 10-mile area.