Decline and closure
Fiesta Mall started showing early signs of trouble in terms of shrinking customer traffic in the late 1990s. When Arizona Mills opened in the neighboring city of Tempe in 1997, mall officials saw an initial decline in shoppers.[24] Fiesta management said the change was short-lived after initial interest in the new mall peaked.[25] When Chandler Fashion Center opened on October 17, 2001, about eight miles away from Fiesta, the mall suffered its first sustained revenue drop due to a competing mall.[26][27] In March 2004, a study commissioned by the city and conducted by the International Economic Development Council and the International Council of Shopping Centers said the mall faced significant obstacles as a future competitor in the local retail market. The study reported decreasing sales and difficulty attracting "top-tier stores" due to increasing competition from newer shopping centers and changing demographics.[28] The study also noted recent increases in crime and gang activity in the immediate area surrounding the mall.[29] Despite the mall's challenges, the study's authors reported that sales per square foot remained "well above the threshold for 'vulnerable malls' of $275 or less, according to the Urban Land Institute." The authors also noted that there were "almost no vacant spaces in the mall."[30]
Fiesta Mall was acquired by Westcor for $135 million in 2004, a time when the center appeared to be showing significant signs of decline.[31][32][33]
The period between 2006 and 2008 proved to be pivotal in Fiesta Mall's overall decline. In 2006, the mall lost one of its four anchors following the merger between Macy's and Robinsons-May;[34] the vacated anchor was split into Best Buy and Dick's Sporting Goods. The mall's sales continued to dwindle following the economic recession and the opening of Mesa Riverview and Tempe Marketplace in 2007.[35][36]
During this time, reported crime at and around the mall continued to increase. In 2007, Mesa police reported a jump in gang activity at Fiesta, although mall officials denied there was a rise. Police officials said calls for service increased about 71 percent from 2005 to 2007.[37] On March 31, 2008, a man stabbed two mall patrons, including one fatally. Authorities said the suspect had links to gangs and had a history of mental health issues.[38][39] Police reported a spike in property crimes including car thefts from 2007 to 2008.[40]
In January 2012, police arrested a documented gang member in the beating and attempted robbery of another man near Fiesta Mall.[41] On October 1, 2012, a woman was robbed at gunpoint at the mall.[42]
In March 2013, the mall was appraised at $39.5 million — a 72 percent decline from its worth in 2004. In September 2013, Westcor turned over Fiesta Mall to its lenders due to “imminent default relating to potential tenancy issues".[43][44]
Macy's closed in early 2014, sparking fears over the mall's possible demise.[45] As of October 2016, only 35 businesses were still operating at the mall, which had more than 100 tenant spaces.[46]
On January 27, 2018, the mall closed permanently, except for Dillard's Clearance Center.
On September 28, 2019, it was announced that Dillard's would close their doors. This left the mall with no remaining tenants.[47]
In March 2023, it was announced that the mall would be demolished.[48]
On July 17, 2023, demolition finally started. The demolition started on the former Macy's and continued throughout the mall.[49] Demolition was completed in 2024.
