Once a symbol of American retail decline, the nation's malls are experiencing a recovery as uneven as the broader economy they reflect. While many shopping centers continue to struggle, a distinct group—anchored by luxury brands, open-air layouts and a new generation of shoppers—has begun to surge ahead.
Luxury malls, particularly those owned by Simon Property Group, are defying the gloom. As The New York Times recently reported, these properties, first developed by the late David Simon, are thriving thanks to affluent consumers whose spending continues to dominate the market. Moody's noted last week that 49.2% of consumer spending now comes from the top 10% of earning households—a statistic that helps explain why high-end retail is outperforming.
Among Simon's holdings, Roosevelt Field near New York City stands out with a 96.3% occupancy rate and tenants such as Savage X Fenty, Armani, Hermès and Rolex. The company says vendors can generate up to $1,250 per square foot of floor space.
"It's absolutely a 'haves and have-nots' type of industry now," Green Street Managing Director Vince Tibone, who specializes in U.S. malls, told the Times. Of the roughly 900 malls nationwide, he added, the top 100 represent half the sector's total value, while the bottom 350 account for only 10%.
That disparity shows up in investment trends as well. Class A mall revenue is growing about 5% a year and CMBS lending for the sector doubled, from $4 billion in 2024 to roughly $8 billion in 2025. Brookfield Corporation's GGP division, which operates about 100 malls, reported an occupancy rate near 95%, with tenant sales up nearly 20% since 2019 and sales per square foot at some top properties soaring 60% over the same period.
Performance has improved across several mall categories. As GlobeSt.com previously reported, open-air malls saw visits climb 6.2% in early 2026 compared to January 2025, while indoor malls rose 4.5%, according to Placer.ai. Outlets, long stuck in a slump, logged a 3.6% gain. The turnaround was notable after a soft December, when open-air centers inched up by only 1.1% and indoor malls slipped by 0.9%, while outlet visits fell by 3.1%.
Adding fresh momentum is a surprising source: Gen Z. As GlobeSt.com reported, NielsenIQ data shows that this generation's retail spending is growing faster than that of any other and is projected to hit $12 trillion globally by 2030. For many young shoppers, the mall has regained its social allure—a modern echo of the 1980s and '90s—though now the competition is as much with smartphones as with movie theaters. Data firm Circana found that Gen Z allocates a higher share of its discretionary income to retail purchases than older consumers.
By mid-2025, lenders had begun signaling new confidence in malls with stable cash flows, according to Trepp, suggesting a cautious shift in sentiment. Yet that optimism hasn't reached the entire sector. Many properties continue to grapple with loan maturities and mixed foot traffic. Still, higher sales volumes and a rising generation of enthusiastic shoppers may be just enough to keep the strongest malls on their upward trajectory.
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