Kevin McCrain

GGP owns both shopping malls across the U.S. and luxury urban street-level retail condos, such as 685 Fifth Avenue in Manhattan. What are the pros and cons to each type of investment? Which has performed better this year?

Both asset classes performed exceptionally well this year with strong tenant demand, reflecting the strength of GGP’s diversified retail portfolio. High Street retail in desirable locations like 685 Fifth Avenue will always remain favorable, driving steady long-term net operating income. 

At the same time, our shopping malls are evolving, dynamic assets that have long-term NOI upside through our ability to continue targeted capital investment.

Where are you getting your money — or, how would you describe your investor base?

We generally use GGP’s balance sheet capital for investment, but, if we want to syndicate our equity, we work with Brookfield’s broad investor base to look for co-investment.

Do you think that retail consumers are changing their behavior as the assets change, or vice versa?

Successful malls must evolve with the consumer to remain relevant. GGP’s leasing team curates each asset to reflect community demand across brands and uses.

Looking at our highly productive Oakbrook Center in the Chicago area, we’ve introduced emerging Gen Z brands, elevated dining, a variety of entertainment concepts and luxury retailers. This strategy continues to optimize occupancy, sales and traffic while reinforcing Oakbrook as one of the most successful shopping centers in the U.S.

How are retail lease agreement structures changing, especially as experiential retail becomes more and more popular across the country?

Broadly, retail lease structures remain the same as they have always been with tenants paying a base rent alongside percentage rent once sales exceed a specified breakpoint. In rare cases, however, emerging or experimental entertainment concepts may utilize management-style contracts.

What about the sizes of tenants’ footprints? Are you seeing larger retail leases take place? If so, in which regions/cities?

It’s generally retailer-specific, not market-specific. Several of our tenants are looking to expand their footprint in our malls to further drive their sales. We are seeing this throughout our portfolio everywhere from Ala Moana Center in Honolulu to Oxmoor Center in Louisville. 

A common challenge for our leasing team is not having enough space to accommodate everyone. It’s a great “problem” to have.

Have you seen tariffs impacting the retail business at all?

Not in our business. GGP’s malls are in great demographic markets with a diversified tenant mix. We have not seen an impact on sales or traffic due to tariffs.

Most surprising item in your portfolio?

That some headlines still imply the “mall is dying.”

Lightning Round:

Your AI platform of choice? ChatGPT.

One prompt you’d never give AI. What should I buy my wife for Christmas?

Jalen Brunson or Aaron Judge? Jalen Brunson, he’s a champion!

“Oppenheimer” or “Odyssey”? “Oppenheimer.”

Tom Holland, Andrew Garfield or Tobey Maguire? Tom Holland.

Have you ever eaten pizza with a knife and fork? Of course not. I’m from New York.

The most money you’ve ever spent on a hamburger? Maybe $40.

Bank or non-bank? Bank.

Last book you read? Taking Manhattan by Russell Shorto.

Borrowing costs — up or down in 2027? Down by the end of 2027.

What was your nickname when you grew up/started out? A little lame, but it was just “McCrain.”

How long do we have before AI kills us all? 10 years at least — you need to build it all first.

Where’s your secret escape compound? (Think Peter Thiel’s New Zealand Plan B.) Colorado, somewhere in the mountains near a lake. (Can’t say where as it’s a “secret.”)