The Macerich Company (
, a real estate investment trust (REIT), recently inked a 15-year
lease with Intelsat, Ltd. for under-construction office building
Tysons Tower in Fairfax County, Virginia. The deal is in support
of Intelsat's decision to relocate its U.S. headquarters from
Washington, D.C. to the area.
BARNES & NOBLE (BKS): Free Stock Analysis
HYATT HOTELS CP (H): Free Stock Analysis
PENNEY (JC) INC (JCP): Free Stock Analysis
MICHAEL KORS (KORS): Free Stock Analysis
MACERICH CO (MAC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Intelsat has been the leading satellite services provider over
the last 45 years. The company has been providing media, network
and satellite related services to many of the world's top
internet service providers, multinational corporations and
As per the deal, Macerich has agreed to lease 188,000 square
feet, or 37% of the Tysons Tower building. The agreement includes
an option to extend the space up to 50%. The first tenant
of the office building, Intelsat, intends to move on to a new
building by mid-2014 and will acquire 14th through 20th floors of
Post completion, the 22-storey Tysons Tower will be the tallest
building in Tysons Corner Center spanning 544,000 square feet.
The tower is a part of 1.4 million square feet extension of
Tysons Corner Center. Tysons Tower will be directly connected
through a covered walkway to the Tysons Corner Metro station,
which is slated to open in December 2013.
Since 1968, Tysons Corner Center has served as an U.S. commercial
powerhouse, with a retail mix intended to generate high annual
revenues. This largest shopping mall in Virginia spans 2.4
million square feet. Macerich acquired the owner of the mall,
Wilmorite Properties, in 2005 and is transforming it into a
community set-up in collaboration with Alaska Permanent Fund
Along with Tysons Tower Office building, the center includes the
recently announced addition of a
Hyatt Hotels Corporation
property, a residential building and new retail space. All assets
will be connected to a new entrance for the grand mall via an
elevated outdoor plaza. The whole project is expected to complete
in four stages in 10 to 15 years with the addition of around
3,500,000 square feet of space.
Macerich strategizes on leasing commercial and retail spaces to
high-end tenants to help them reach their most productive
customers in dynamic U.S. markets. In the third quarter of 2012,
overall portfolio occupancy increased to 93% versus 91.9% in the
prior-year quarter. In addition, the re-leasing spreads also
jumped 18.5% year over year. Some of the major tenants of
J. C. Penney Company, Inc.
Michael Kors Holdings Ltd.
Barnes & Noble, Inc.
Macerich has a heavy concentration of A-quality malls in some of
the most attractive markets in the U.S., including Arizona,
California, Virginia and New Jersey. As of September 30, 2012,
Macerich owned a managing interest in 59 regional shopping
centers spanning approximately 62 million square feet of gross
We currently have a long-term Neutral recommendation on Macerich.
Also, it carries a short-term Zacks #3 Rank (Hold).