Revenues of shopping malls and outlets reached pre-crisis levels for the first time

Simon Property Group has reported 80% revenue growth compared to June 2020.

US-based Simon Property Group, the largest owner of shopping malls in the global market, has reported that sales at all properties reached pre-crisis levels for the first time in June during the last fiscal period under review. 

Simon Property CEO David Simon reported an 80% increase in mall and outlet sales compared to June 2020. In some states, sales have already surpassed pre-recession 2019 levels. 

Simon Property expects that the market recovery will spur retailers to enter into new leases. Last year, a significant amount of retail space in U.S. malls emptied due to bankruptcies and retailer business optimization programs. 

As of June 30, 2021, malls under management had an average of 91.8 percent of their retail space filled. By comparison, two years ago, the figure was 94.4 percent.

“We continue to see demand for space across our portfolio, from local, regional and national tenants, entrepreneurs, restaurateurs, and mixed-use tenants … it’s growing day by day,” commented David Simon, noting that the market still has to “dig itself out of a hole” because of last year’s series of bankruptcies. 

Since the beginning of the year, Simon Property’s stock has nearly doubled in value, and today the principal owner of shopping malls is valued at $41.5 billion. The company said it would not require a certificate of vaccination from customers, though it would continue to encourage the use of the government program.