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Is it Wise to Retain Macerich Stock in Your Portfolio Now?
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Key Takeaways
Macerich's leased occupancy reached 94% in June 2026, up from 92% a year earlier, amid strong retailer demand.
MAC's signed-not-open pipeline hit $124M, with Path Forward's NOI CAGR midpoint at 6.5% through 2028.
Bankruptcies covered 18 Macerich leases and $3.9M in annual leasing revenues; e-commerce adds pressure.
Macerich (MAC - Free Report) is well-positioned to benefit from a premium mall portfolio, improving occupancy, strong retailer demand and Path Forward initiatives. Strategic dispositions, redevelopment projects and a robust leasing pipeline further strengthen its growth prospects.
However, tenant bankruptcies, store closures, e-commerce competition, geographic concentration and competition from other retail REITs remain key challenges to its operating performance.
What’s Aiding MAC?
Macerich has a high concentration of premium malls in affluent, supply-constrained U.S. markets, with roughly 90% of go-forward NOI generated from Class A assets. As of June 30, 2026, portfolio leased occupancy reached 94%, up from 92% a year earlier, while go-forward leased occupancy was 95.5%. Trailing 12-month tenant sales for spaces under 10,000 square feet rose to $919 per square foot, while go-forward portfolio sales were $954. Management noted that strong retailer demand and limited space in its top-performing centers have pushed leasing into 2029 and 2030, supporting future pricing power. We expect the company’s total portfolio occupancy to increase to 94.6% in 2026.
Macerich continues to refine its portfolio through asset dispositions while directing capital toward strategic redevelopment, acquisitions and balance-sheet improvement. As of the second quarter of 2026, approximately $1.3 billion of Path Forward dispositions had been completed, with another $300-$400 million of assets, outparcels and land targeted for sale by year-end 2026. Of this amount, roughly $100 million was under contract. The company also had approximately $372 million of unsettled forward equity available for future acquisitions as of August 2026.
Macerich’s Path Forward strategy includes recapturing and repositioning anchor space to improve traffic and support in-line leasing. By August 2026, all 30 planned anchor and big-box replacements were committed, reducing leasing risk as the focus shifted toward converting signed leases into open, rent-paying stores. Ongoing development and redevelopment at Scottsdale Fashion Square, Green Acres Mall and FlatIron Crossing provide additional investment runway through 2027 and beyond.
The Path Forward plan has shifted from lease signing to store openings and rent commencement. The signed-not-open pipeline reached $124 million in the second quarter of 2026. As of Aug. 4, 2026, store-opening completion was 57%, and management expects to exceed its 60% year-end 2026 target. Management’s Path Forward 3.0 outlook implies a three-year NOI compound annual growth rate (CAGR) midpoint of 6.5% through 2028.
What’s Hurting MAC?
Macerich’s 2026 operating results continue to be affected by tenant bankruptcies and store closures. Through June 30, 2026, four tenant bankruptcy filings, including Saks Global, covered 18 leases, 184,000 square feet and $3.9 million of annual leasing revenues at Macerich’s share. Management expects 2026 filings to remain below the last-decade average, but the bankruptcies of Express, Forever 21 and Claire’s, along with the resulting store closures, are still expected to weigh on operating results.
Online shopping remains a long-term competitive threat across several retail categories, even as Macerich’s premier malls continue to witness healthy tenant demand. The company is focusing on experiential retail, restaurants and traffic-generating anchors to boost customer visits and tenant productivity. While these initiatives can strengthen the appeal of its high-quality malls, they do not eliminate the risk of underperforming retailers closing stores or reducing their physical footprints as consumer spending shifts online, potentially weighing on occupancy and rental growth.
Moreover, competition from other retail REITs, such as Simon Property Group (SPG - Free Report) and Kimco Realty (KIM - Free Report) , which operate malls and open-air shopping centers, respectively, could intensify competition for quality tenants and leasing opportunities.
Macerich’s portfolio remains concentrated in California, Arizona, the Pacific Northwest and the Metro New York to Washington, DC corridor, exposing it to regional economic fluctuations. Weakening consumer spending or unfavorable economic conditions in these markets could adversely affect tenant sales and rental income. Consequently, geographic concentration remains a potential risk, as weakness in one or more major markets could weigh on operating performance.
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Is it Wise to Retain Macerich Stock in Your Portfolio Now?
Key Takeaways
Macerich (MAC - Free Report) is well-positioned to benefit from a premium mall portfolio, improving occupancy, strong retailer demand and Path Forward initiatives. Strategic dispositions, redevelopment projects and a robust leasing pipeline further strengthen its growth prospects.
However, tenant bankruptcies, store closures, e-commerce competition, geographic concentration and competition from other retail REITs remain key challenges to its operating performance.
What’s Aiding MAC?
Macerich has a high concentration of premium malls in affluent, supply-constrained U.S. markets, with roughly 90% of go-forward NOI generated from Class A assets. As of June 30, 2026, portfolio leased occupancy reached 94%, up from 92% a year earlier, while go-forward leased occupancy was 95.5%. Trailing 12-month tenant sales for spaces under 10,000 square feet rose to $919 per square foot, while go-forward portfolio sales were $954. Management noted that strong retailer demand and limited space in its top-performing centers have pushed leasing into 2029 and 2030, supporting future pricing power. We expect the company’s total portfolio occupancy to increase to 94.6% in 2026.
Macerich continues to refine its portfolio through asset dispositions while directing capital toward strategic redevelopment, acquisitions and balance-sheet improvement. As of the second quarter of 2026, approximately $1.3 billion of Path Forward dispositions had been completed, with another $300-$400 million of assets, outparcels and land targeted for sale by year-end 2026. Of this amount, roughly $100 million was under contract. The company also had approximately $372 million of unsettled forward equity available for future acquisitions as of August 2026.
Macerich’s Path Forward strategy includes recapturing and repositioning anchor space to improve traffic and support in-line leasing. By August 2026, all 30 planned anchor and big-box replacements were committed, reducing leasing risk as the focus shifted toward converting signed leases into open, rent-paying stores. Ongoing development and redevelopment at Scottsdale Fashion Square, Green Acres Mall and FlatIron Crossing provide additional investment runway through 2027 and beyond.
The Path Forward plan has shifted from lease signing to store openings and rent commencement. The signed-not-open pipeline reached $124 million in the second quarter of 2026. As of Aug. 4, 2026, store-opening completion was 57%, and management expects to exceed its 60% year-end 2026 target. Management’s Path Forward 3.0 outlook implies a three-year NOI compound annual growth rate (CAGR) midpoint of 6.5% through 2028.
What’s Hurting MAC?
Macerich’s 2026 operating results continue to be affected by tenant bankruptcies and store closures. Through June 30, 2026, four tenant bankruptcy filings, including Saks Global, covered 18 leases, 184,000 square feet and $3.9 million of annual leasing revenues at Macerich’s share. Management expects 2026 filings to remain below the last-decade average, but the bankruptcies of Express, Forever 21 and Claire’s, along with the resulting store closures, are still expected to weigh on operating results.
Online shopping remains a long-term competitive threat across several retail categories, even as Macerich’s premier malls continue to witness healthy tenant demand. The company is focusing on experiential retail, restaurants and traffic-generating anchors to boost customer visits and tenant productivity. While these initiatives can strengthen the appeal of its high-quality malls, they do not eliminate the risk of underperforming retailers closing stores or reducing their physical footprints as consumer spending shifts online, potentially weighing on occupancy and rental growth.
Moreover, competition from other retail REITs, such as Simon Property Group (SPG - Free Report) and Kimco Realty (KIM - Free Report) , which operate malls and open-air shopping centers, respectively, could intensify competition for quality tenants and leasing opportunities.
Macerich’s portfolio remains concentrated in California, Arizona, the Pacific Northwest and the Metro New York to Washington, DC corridor, exposing it to regional economic fluctuations. Weakening consumer spending or unfavorable economic conditions in these markets could adversely affect tenant sales and rental income. Consequently, geographic concentration remains a potential risk, as weakness in one or more major markets could weigh on operating performance.