An article summarized by the New York Post:
American malls are staging a surprising comeback after years of being written off as dying retail dinosaurs. Mall values have jumped 13% over the past year, according to Green Street, outperforming every other major commercial real-estate sector. The rebound is being driven by stronger consumer spending, fewer retail bankruptcies, and a new strategy of replacing struggling department stores with luxury brands, restaurants, entertainment and other experiences that give people a reason to visit.
The strongest malls are increasingly becoming destinations rather than just shopping centers. The Mall of America and American Dream each attract roughly 40 million visitors annually, while Houston’s Galleria draws more than 30 million. Investors are taking notice: Simon Property Group has reached a decade-high stock price, while Unibail-Rodamco-Westfield is investing nearly $1 billion to regain control of two U.S. malls it previously planned to abandon. CBL Properties, meanwhile, has seen its stock rise 48% this year after acquiring five properties.
Still, skeptics argue the comeback may be more about valuable real estate than the future of traditional retail. Some investors believe malls ultimately derive their value from the land beneath them, while restaurants and entertainment businesses could be difficult to replace if they fail. But individual turnarounds show genuine momentum: at CBL’s West County Center, tenant sales have risen 13% since 2023 as new restaurants and retailers move in. The broader lesson is that malls may not be disappearing, they’re evolving into mixed-use entertainment and lifestyle destinations.
