PREIT, a leading real estate investment trust focused on creating thoughtful, community-centric properties, announced that 2021 closed on a high note with core mall rolling 12-month sales eclipsing $600 per square foot at $603.
Properties with the most pronounced per square foot growth include those established as the dominant enclosed retail destination in their respective market, as inferior competition struggled following lockdowns. By contrast, PREIT properties emerged with the benefit of new anchors and a strong existing tenant mix. Specifically, Patrick Henry, Capital City, Valley and Viewmont Malls all experienced over 20% growth in sales compared to pre-pandemic levels.
Standing above the balance in terms of growth and absolute sales per square foot is PREIT’s premier super-regional property, Cherry Hill Mall, growing nearly 28% to $936.
“Sales per square foot is a meaningful metric that influences a number of aspects of our business. As sales grow, our tenants are more productive, improving our ability to drive rents,” said Joseph F. Coradino, Chairman and CEO of PREIT. “Additionally, with portfolio-wide comparable sales over $600, the door to an expanded base of interested tenants opens, allowing us to drive occupancy and improve the quality of the experience offered at our centers.”
Nearly 100,000 square feet of new tenants opened at these properties during 2021, including the following noteworthy additions spanning key sectors of fashion, dining and entertainment:
- Capital City Mall: Aerie, Cinnabon, rue21 and Windsor Fashions
- Patrick Henry Mall: Papaya, Windsor Fashions, The Twisted Crab and Kidz Play
- Cherry Hill Mall: Amazon 4-star, Warby Parker, DEO Eyewear, Miniso, Aerie and Purple
Coradino continued, “As our tenants reach new levels of performance and we attract a new caliber of tenancy, the quality of our portfolio continuously improves, which is expected to lead to cap rate compression and improved asset values. As we continue our efforts to proactively raise capital to reduce debt and exercise our credit facility extension, we anticipate this improved value will propel the effort and create value for stakeholders.”