The Macerich Company (MAC): Marketing Mix Analysis [Dec-2025 Updated]

You need a sharp, late-2025 view of The Macerich Company's core strategy, so here is the marketing mix analysis you requested. Honestly, looking at their latest numbers, it's clear the focus on Class A, mixed-use destinations is paying off; they've successfully shed non-core assets for over $1.1 billion while keeping their Go-Forward Portfolio occupancy at 94.3%. As a former head analyst, I see this execution-driving tenant sales to $867 per square foot and locking in new leases with 22% spreads in Q1-as a textbook response to the market, all guided by their 'Path Forward' plan. Let's break down exactly how their Product, Place, Promotion, and Price are set up for the next few years.

The Macerich Company (MAC) - Marketing Mix: Product

The Macerich Company (MAC) offers its customers access to premier, high-quality retail environments. The core offering is centered on owning and operating Class A regional shopping centers and developing them into dynamic mixed-use destinations. This focus is on creating vibrant, experiential retail environments that draw consistent shopper traffic. The company concentrates its portfolio in densely populated and attractive U.S. markets, including California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor.

Strategic redevelopment is key to enhancing the product. You see this clearly at assets like Scottsdale Fashion Square, which is continually reinvested in to maintain its luxury aesthetic and community hub status. Recent and planned enhancements include upgrading the central gathering space, the Palm Court, with construction starting in January 2026 to introduce raised ceilings, lush landscaping, and a dynamic three-sided digital display. This follows prior phases that added complementary uses like the Caesars Republic Scottsdale boutique hotel and Life Time Scottsdale. Furthermore, the conversion of Queens Center into a multi-phase, multi-year mixed-use development-incorporating high-end grocery, restaurants, multi-family residences, and offices-demonstrates this strategy in action.

The tangible product for the customer is the physical space and the curated experience it offers, but for the retailer, the product is the leased space and the curated tenant mix. The quality of the tenant mix directly impacts shopper draw and sales performance. As of September 30, 2025, the overall portfolio occupancy stood at 93.4%, though the Go-Forward Portfolio Centers occupancy was slightly higher at 94.3%. The leasing momentum remains strong, with base rent re-leasing spreads being positive for the sixteenth consecutive quarter, reaching 5.9% more than the expiring base rent for the trailing 12 months ended September 30, 2025.

The Macerich Company places a high priority on corporate responsibility, which is integrated into the product offering through its commitment to sustainability. This commitment is validated by external recognition. For the tenth consecutive year, The Macerich Company has achieved a #1 GRESB ranking for the North American retail sector, covering the years 2015 through 2024. Additionally, The Macerich Company was recognized among America's Most Responsible Companies 2025 by Newsweek.

The focus on the quality of the leased space is further evidenced by the performance of the tenants occupying it. For the trailing 12 months ending September 30, 2025, tenant sales per square foot for spaces under 10,000 square feet reached $867, an increase from $834 the prior year. The leasing activity in Q3 2025 was robust, signing leases for 1.5 million square feet, which was an 81% increase year-over-year on a comparable center basis. This activity is designed to ensure the tenant mix remains relevant and high-performing.

• The Macerich Company is focused on owning and operating thriving retail centers that bring communities together.
• The portfolio is concentrated in specific high-growth U.S. markets.
• Redevelopment projects aim to integrate new uses like hospitality and residential components.
• Leasing momentum has resulted in 16 consecutive quarters of positive base rent re-leasing spreads.
• Sustainability leadership is confirmed by a decade-long top GRESB ranking.

The Macerich Company (MAC) - Marketing Mix: Place

Place, or distribution, for The Macerich Company (MAC) is defined by the strategic ownership, operation, and leasing of its physical, high-quality retail real estate assets. This is where the product-the shopping center experience-is made available to the intended consumers.

The physical footprint of The Macerich Company (MAC) is concentrated in specific, high-value geographic areas. The portfolio consists of approximately 40 properties, totaling around 42.9 million square feet of gross leasable area as of the first quarter of 2025. These centers are strategically located in affluent, densely populated US markets, with a focus on key regions such as California, the Pacific Northwest, Phoenix/Scottsdale, and the Metro New York to Washington, D.C. corridor.

The company is actively executing its strategy to fortify this portfolio by proactively consolidating selected joint venture assets that are core to the overall strategy. This focus on core assets is directly linked to the performance of its most valued holdings. The company is definitely focused on its Go-Forward Portfolio Centers, which report a 94.3% occupancy rate as of the third quarter of 2025.

To refine the portfolio and improve the balance sheet, The Macerich Company (MAC) has been actively managing non-core assets. The disposition of non-core assets has generated over $1.2 billion in closed mall dispositions to date, as reported in the third quarter of 2025. This aligns with the plan to monetize non-core assets to generate cash for debt paydown.

The distribution strategy is best summarized by the composition and performance of the core assets:

• Portfolio size is approximately 40 properties.
• Total gross leasable area is around 42.9 million square feet.
• Geographic concentration in top-tier US markets.
• Disposition proceeds generated to date are $1.2 billion.
• Go-Forward Portfolio Centers occupancy stands at 94.3%.

The performance metrics of the physical locations underscore the distribution strategy's focus on quality over sheer volume. For instance, tenant sales per square foot for spaces less than 10,000 square feet for the trailing twelve months ended March 31, 2025, were $837.

The Macerich Company (MAC) - Marketing Mix: Promotion

The Macerich Company (MAC) centers its promotional and leasing communication around the central strategic roadmap known as the 'Path Forward' Plan, which guides the business from 2024 through 2028. This plan emphasizes operational performance improvement and deleveraging, with management noting they have remained ahead of schedule on this roadmap. The acquisition of Crabtree Mall is cited as an incremental opportunity that builds upon this momentum.

The Macerich Company (MAC) leasing teams employ a dual approach to communicate leasing opportunities and secure tenants. This involves traditional direct sales efforts alongside the use of digital platforms, most notably 'QuikSpace'. This platform, powered by Yardi, digitalizes the short-term leasing process, allowing retailers to view available space, conduct virtual tours, and execute leases for terms up to 12 months online, mimicking an e-commerce experience.

Leasing volume has demonstrated strong execution against targets. The Macerich Company (MAC) is reported to have signed 4.3 million square feet in H1 2025. This leasing success is a key promotional outcome, as it directly feeds the pipeline of future revenue and enhances the quality of the property tenant mix.

Marketing efforts are designed to drive consumer traffic directly to The Macerich Company (MAC) properties, which in turn supports tenant performance. The goal is to convey the value proposition of the physical locations to the target audience, thereby enhancing tenant sales per square foot. For example, portfolio tenant sales per square foot for space less than 10,000 square feet for the trailing twelve months ended September 30, 2024, stood at $834.

The success of the leasing strategy is quantified through the Signed Not Open (SNO) pipeline, which represents committed future revenue. The Macerich Company (MAC) is actively managing this pipeline to ensure a steady stream of new rental income.

• The 'Path Forward' Plan is the central strategic roadmap for 2024-2028.
• Leasing teams use a dual approach: direct sales and digital platforms like 'QuikSpace'.
• Leasing volume is ahead of schedule, signing 4.3 million square feet in H1 2025.
• Marketing efforts drive consumer traffic to properties, enhancing tenant sales per square foot.
• New store leasing pipeline (SNO) is valued at $87 million, targeting $100 million by year-end.

The Macerich Company (MAC) is also focused on the execution of its leasing pipeline, with specific expectations for revenue realization from these signed deals. For instance, approximately $25 million of the current SNO pipeline incremental rent was expected to impact 2025, with $6 million realized in Q1 2025 alone.

The Macerich Company (MAC) - Marketing Mix: Price

When we look at The Macerich Company's pricing element of the marketing mix, we're really looking at the achieved rental rates and the underlying economic strength that supports those rates. Effective pricing here means capturing the full value of your prime real estate, which is exactly what management is focused on with its Path Forward plan. You want to see the numbers reflecting strong tenant performance, because that's what ultimately drives what you can charge for space.

The core operational performance indicators give us a clear picture of the current pricing power. For instance, the Funds From Operations (FFO) per share for the third quarter of 2025 came in at $0.35. That's a key metric for judging the cash flow generated from operations. Anyway, the leasing activity shows that the market is responding well to the properties' value proposition.

We see tangible evidence of this in the spreads. Trailing 12-month base rent re-leasing spreads were positive at 5.9% as of Q3 2025. That's the twelfth consecutive quarter of positive base rent leasing spreads. To be fair, new deal leasing spreads were even stronger, hitting 22% in Q1 2025, showing significant upside on new commitments.

Tenant sales are the ultimate proof of concept for rental rates. Portfolio tenant sales per square foot reached $867 as of September 30, 2025. For the go-forward portfolio, those sales were even higher, hitting $905 per square foot. This high sales velocity gives The Macerich Company leverage when negotiating rent.

Here's a quick look at how some of these key performance indicators stack up against recent history, giving you context for the current pricing environment:

The Macerich Company's long-term view on pricing power is reflected in its internal targets. The long-term plan targets a clean FFO/share of approximately $1.80 within three to four years. Management has reiterated they are well positioned to deliver on their 2028 targets.

You can see the pricing strength reflected in the leasing pipeline, too:

• Year-to-date signed leases for 2025 reached 5.4 million square feet.
• The Signed Not Open (SNO) pipeline grew to $99 million as of the Q3 call.
• Occupancy in the go-forward portfolio stood at 94.3%.
• The company is on track for an 85% completion target for new leasing activity by mid-2026.

Finance: draft the projected FFO per share based on the $1.80 target and current debt repayment schedule by next Tuesday.