U.S. malls surge 13% in value, outpacing all other commercial real estate

According to Green Street, U.S. mall valuations jumped 13% in the past year, outstripping the recovery pace of the broader commercial market. The turnaround is fueled by younger shoppers, upscale brands moving into former anchor slots, and the addition of attractions like indoor ski slopes and water parks. High-traffic centres—including Mall of America, American Dream, The Galleria, King of Prussia Mall and Aventura Mall—each draw between 25 million and 40 million visitors annually.

Simon Property Group’s shares have reached new highs, while Unibail-Rodamco-Westfield is investing nearly $1 billion to regain full control of two West Coast malls. CBL Properties, after a pandemic-era bankruptcy, has rebounded with a 48% stock rise and new acquisitions. Some analysts caution that the surge may be fragile, noting that many malls now rely on non-retail tenants whose leases could be hard to replace if the market falters.