Vestar, one of the leading privately held shopping center owners and operators in the western United States, experienced a landmark year in 2023. The Phoenix-based company demonstrated remarkable growth and innovation as it expanded its presence across the west.
David Larcher, Vestar’s president and CEO expressed enthusiasm for the company's growth trajectory and milestones.
“We are very proud of what our team accomplished in 2023," said Larcher. "It underscores our ability to adapt to dynamic market conditions and meet the evolving needs of retailers and consumers alike. Our robust development activity reflects the fact that the demand for open-air retail exists, particularly in areas of heavy population growth.”
Leasing
With a year-ending average occupancy rate at a record 95%, Vestar executed 396 new and renewed lease agreements, totaling more than 1.7 million square feet of retail space, an 11% increase over 2022. Comparable rent growth exceeded 13% on new leases and over 6% on renewals.
Development highlights
Vestar continued to make progress in its development strategy. Verrado Marketplace, Vestar’s largest active development located in Buckeye, announced that national retailers Target, Harkins BackLot, Safeway, Marshalls, Ross and HomeGoods would anchor the $155 million project, scheduled to break ground in 2024.
Queen Creek, another growth market targeted by Vestar, is home to 600,000 square feet of new development projects at Vineyard Towne Center and Queen Creek Crossing, now moving into the second and final phase with construction scheduled to conclude in 2025.
Peoria’s Shops at Lake Pleasant opened in fall 2023 and will see its final stores open in spring 2024, while Laveen Towne Center in Phoenix progresses in the early stages of pre-development.
Sustainability
Vestar continued to grow their proprietary GreenStar program in 2023, forging a partnership with Arizona State University’s School of Sustainability to launch the "Cool Pavement Project" for the first time at a commercial retail center. The project aimed to mitigate pavement heat by applying a water-based asphalt coating that is expected to lower the urban heat island effect by reflecting heat rather than absorbing it. Findings will be measured throughout 2024 and reported on before the end of the year.
Marketing
An estimated 250 million people visited Vestar properties last year, marking a nearly 10% increase from 2022. Furthermore, Vestar's community efforts attracted new customers in 2023, hosting approximately 2,000 events across its 40-plus properties in seven states. Highlights included the introduction of the brand new pop-up Ember Lounge, a District Dome experience at Desert Ridge Marketplace, which drew in more than 7,500 guests last holiday season, captivating visitors, garnering rave reviews and completely selling out its initial run. Additionally, the popular "Sip & Stroll" program became a permanent offering at Tempe Marketplace and Desert Ridge Marketplace.
Community outreach, partnerships
Vestar demonstrated its commitment to giving back to the community through more than 100 charity partnerships that were secured in 2023. These efforts reflect Vestar's dedication to not only providing exceptional retail and entertainment experiences but also making a positive impact on the communities they serve in.
For more about Vestar and the company’s growing portfolio of retail and entertainment destinations, visit vestar.com.
