Cherry Hill Mall in New Jersey's average sales per sq. ft. rose more that 25% to $936.
PREIT CEO Joe Coradino has hit a checkpoint on his mission to establish his properties as the last malls standing in their markets.
Nearly a decade ago, Coradino established $500 sales per sq. ft. as the minimum take inside PREIT properties, and he disposed of several malls that fell short. Today the Philadelphia-based company reported that it closed 2021 with average sales per square foot of $603 across its 19 malls.
“As sales grow, our tenants are more productive, improving our ability to drive rents," Coradino said. "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."
Cherry Hill Mall, long the star of the PREIT portfolio in the affluent New Jersey suburb of Philly, shined the brightest last year with an average sales per sq. ft. of $936, 28% higher than it was in 2020.
Other PREIT properties whose sales rose by 20% or more were Patrick Henry Mall in Newport News, Va., Capital City Mall in Camp Hill, Pa., and Viewmont Mall in Scranton, Pa.
PREIT reported that 100,000 sq. ft. of new tenants opened throughout its portfolio, among them Aerie, Warby Parker, Amazon 4-Star, The Twisted Crab, and Kidz Play.
“The quality of our portfolio continuously improves, which is expected to lead to cap rate compression and improved asset values,” Coradino said. “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."