Macerich is spending $330 million this year on its developmentand redevelopment pipeline, $500 million next year and $700 millionin 2009. A majority of the new projects are in the Phoenix area,where it just opened the 1.2 million-sf San Tan Village, inGilbert. The company recently received local government approval toopen its next new center, the regional Estrella Falls, in Surprise,in 2009. Redevelopments are taking place across its nationalportfolio as well.

When asked during the company's third-quarter conference call ifa slowing housing market could impact its plans to build fiveregional centers around Phoenix, Arthur Coppola, the company'schief executive officer and president, said he is confident in themarket. "We are pursuing development in trade areas that arealready populated," he said. "We're not relying on any future jobor population growth."

In fact, Coppola says, the housing downturn could ironicallyhelp the company combat the high construction costs that haveplagued the industry as a whole by freeing up the labor pool. Itcould even moderate or drop overall costs.