Taubman's Steve Kieras

LAS VEGAS-One developer with a slew of projects to highlight at the International Council of Shopping Centers’ Spring Convention here last week was Bloomfield Hills, MI-based Taubman Centers. The company had projects on display from the Detroit area to South Korea. But one, Project CityCenter, was just a short drive from the Las Vegas Convention Center, to the Strip. Set to open in 2009 CityCenter is a multi-use project being developed by MGM Mirage for which Taubman will perform retail leasing duties. CityCenter will have 470,000 sf of retail, and though no leases have been signed yet, Steve Kieras, Taubman’s senior vice president of development, has high expectations for the center. Kiers spoke with GSR last week at during the ICSC convention.

GSR: How has the convention gone for you compared to past years?

Kieras: My personal assessment is that it’s very good and upbeat. There is a lot of product out there and a lot of people looking to grow. I would say that overall, I think the industry, based on my feel at this convention, is very strong. REITs are continuing their growth. Even though interest rates are rising, REITs are still a favored investment, which is somewhat counterintuitive. People said that once interest rates go up, investors would bail out of REITs. What’s happening is that there’s been a secular change. Now people say that these are strong assets. People are going to buy. We’re in good areas that are hard to duplicate, and we have long leases, so if there’s a short-term downturn, that doesn’t mean our income goes down. These people still pay us rent; we have credit-worthy tenants. I think people are realizing that this is a very strong, fundamental business that has a tremendous base and great growth prospects. I think the industry in general, and me in particular, is very bullish.