Who said traditional retail is dead?
Macerich Company and Simon Property Group don’t think so — at least not discount retail. The retail giants announced on Tuesday that they are partnering to develop a 566,000-square-foot outlet center in Carson.
The new shopping center, to be named the Los Angeles Premium Outlets, is meant to attract “the most affluent local residents and international tourists,” according to a press release.
The companies, which will share a 50-50 interest, didn’t disclose any potential tenants, but a rendering of the center includes signage mimicking high-end brands like Italian watch designer Bulgari and apparel-makers Ralph Lauren and Banana Republic.
The property will be built near Interstate 405. The partners expect to start construction immediately and open in fall 2021.
The move comes as both companies are weathering the so-called retail apocalypse that’s forced numerous big box retailers and shopping malls to shutter around the country. Both are among the largest mall landlords in the country.
Top executives at Simon, a real estate investment trust based in Indianapolis, saw their compensation packages cut last year. Those packages are often based on company performance and have traditionally made up the bulk of pay for executives.
Santa Monica-based Macerich has made radical moves to diversify and turn around its underperforming shopping centers. This year also saw longtime Macerich CEO Art Coppola step down from his post, effective at the end of this year.
Senior Executive Vice President Thomas O’Hern will take over the position.
In March the company linked up with Hudson Pacific Properties to redevelop the majority of the 600,000-square-foot Westside Pavilion mall into creative office space. It partnered with co-working firm Industrious in August to add co-working space to malls around the country.