Retailers are looking to renew their leases for space in malls for up to three years before the current lease expires. Simon Real Estate Group CEO, President and Chief Operating Officer So Simon He said Monday (May 11).
Simon was speaking during the first quarter Earnings call The company owns shopping, dining, entertainment and mixed-use destinations across North America, Europe and Asia.
“What’s interesting when talking to the leasing team is that retailers now want to talk about their expirations in 2027, 2028, 2029, which has probably historically been more of a phenomenon of luxury tenants, who think, much like we do, in terms of contracts, not quarter to quarter,” Simon said. “We’re actually hearing from legacy retailers in our current portfolio, non-luxury, who really want to start having those conversations because I think they understand that pipeline as well and the interest in our space.”
As of the end of the first quarter, March 31, Simon Properties Group reported year-over-year increases in U.S. mall and premium outlet operating statistics, according to a statement Monday. Earnings release.
Over the year, occupancy increased 10 basis points to 96%, base minimum rent per square foot increased 5.2% to $61.99, and reported retail sales per square foot increased 11.8% to $819.
Shopping centers and premium outlets in the United States accounted for 77.1% of Simon Properties Group’s net operating income during the first quarter, according to a report. Supplementary The offer was released on Monday.
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In the first quarter, the company signed more than 1,100 leases totaling more than 4.7 million square feet, with about 25% of lease volume being new deals, Simon said during the call. He added that the company has completed more than 75% of its 2026 expiration, putting it ahead of last year’s pace, and that the deal pipeline is “much larger” than it was at this time last year.
“Occupancy gains, increased shopper traffic and higher retail sales led to strong cash flow growth in the quarter, reflecting strong fundamentals across all our platforms, consumer resiliency, and the strength and breadth of tenant demand for our centers,” Simon said. “Retail demand remains broad, covering new and established retailers across a wide range of categories across all our platforms and geographies.”
