Simon Property Group just finished buying the last piece of the Taubman portfolio. The move hands the Indianapolis-based REIT complete authority over roughly 20 upscale shopping centers that have long anchored affluent suburbs from Beverly Hills to Short Hills. But while Simon doubles down on high-end properties that draw steady crowds, chains like Journeys keep shedding mall locations at a steady clip. The contrast captures where American retail real estate stands in mid-2026.
The final transaction closed in November 2025. Simon exchanged 5.06 million limited partnership units for the remaining 12% interest in The Taubman Realty Group it did not already own. Piper Sandler pegged the value near $900 million. CoStar News reported the deal brings to an end years of incremental purchases that began with an 80% stake acquired in late 2020.
David Simon did not mince words. “We are pleased to finalize this transaction, which will be accretive to Simon,” the chairman, chief executive and president said in the announcement. He later added that full ownership aligns with the company’s focus on high-quality assets, unlocks synergies and positions Simon to lift net operating income across the former Taubman centers. Analysts expect the benefits to show clearly in 2026 and reach full run-rate in 2027.
These are not average malls. Properties such as Beverly Center in Los Angeles, The Mall at Short Hills in New Jersey and Cherry Creek in Denver cater to higher-income shoppers who still spend on luxury goods, dining and experiences. Simon already operates one of the largest mall portfolios in the country. Now it gains total latitude to redevelop, adjust tenant mixes and introduce new formats without minority-partner approval. Rudy Milian of Woodcliff Realty Advisors called it a quality collection. “Simon’s creative,” he told CoStar. “They’re able to redevelop a lot of properties [and] bring in the right kind of tenants.”
Yet not every retailer shares that optimism about traditional mall space. Genesco, parent of the once-ubiquitous Journeys footwear chain, has closed 202 stores between January 2023 and May 2026. The count dropped from 1,410 locations to 1,208. In fiscal 2024 alone the company shuttered 94 Journeys doors and planned another 50 closures the following year. Another 30 followed in the first quarter of fiscal 2027.
The reason is straightforward. “Amid declining sales, Genesco is shifting the store presence of Journeys away from malls,” Yahoo Finance noted, citing an earlier Retail Dive report. Many of those exits targeted underperforming sites in lower-tier centers. The chain that teenagers once treated as a rite of passage now seeks more efficient footprints, often in off-mall or power-center formats. Still, Genesco posted a 3% rise in net sales to $487 million and 2% comparable-sales growth in its most recent quarter. The company is pruning to protect the bottom line.
Foot traffic tells a more encouraging story for the properties Simon favors. Indoor malls recorded a 1.8% increase in visits during the first half of 2025, with visit durations up 3.3%, according to data cited by the National Retail Federation from Capital One Shopping. April 2026 brought further gains across all mall formats. Placer.ai’s analysis shows two consecutive years of modest but positive visit growth hovering around 1% annually. Consumers make more frequent trips, though many stay shorter and arrive with specific purchases in mind.
A survey of nearly 500 retail leaders conducted by Placer.ai between December 2025 and March 2026 revealed clear tier separation. Fifty-four percent expect Tier 1 malls to keep performing well. Only 15% voiced optimism about Tier 2 centers, while 30% predicted broad declines across mall types. The message is plain. Premium properties with strong anchors, mixed-use elements and experiential offerings outperform everything else. Placer.ai noted that as space tightens at the top properties, some operators may find fresh chances in well-positioned Tier 2 assets.
Simon has moved aggressively to capitalize on that divide. The company raised its full-year real estate funds from operations growth outlook to 3.5% after a solid first quarter. Domestic property net operating income climbed 6.7% year-over-year. Mall and outlet occupancy reached 96.0%. Base rents rose more than 5%. Trailing-twelve-month sales productivity jumped 11.8% to $819 per square foot. Those figures reinforce why Simon paid to own Taubman outright.
But the broader industry faces real pressure. Department stores continue to shrink their footprints. Lower-tier malls lose anchors and struggle to fill space. Many owners have converted empty big-box locations into fitness centers, entertainment venues, grocery stores or medical clinics. The shift turns shopping centers into hybrid destinations where buying is only part of the draw. The National Retail Federation observed that in a world short on human connection, malls can serve as antidotes to screen time when they deliver entertainment and socialization alongside retail. Netflix House activations and pop-up experiences at places like King of Prussia illustrate the trend.
Wellness concepts have gained ground as new anchors. Powerhouse Gym is opening a massive 120,000-square-foot facility at one Simon-owned center in Michigan complete with pool, courts and sauna. Healthcare tenants and yoga studios appear more frequently in redevelopment plans. These additions bring steady foot traffic that benefits remaining retailers.
Simon itself has a robust pipeline. It carries more than $1 billion in projects under construction at blended yields near 9%. Another $1 billion is slated to break ground this year, with a $3 billion shadow pipeline beyond that. Mixed-use developments remain central. The company plans to announce a major ground-up retail and mixed-use project in Nashville, a move that underscores its bet on carefully chosen locations.
Investors appear to agree. High-end malls have drawn renewed interest from capital allocators who see stronger net operating income growth potential in properties serving top-earning consumers. JPMorgan Asset Management’s Thomas Kennedy highlighted that view late last year. Simon’s stock performance and dividend increases reflect confidence that premium retail real estate retains durable appeal.
The story is not uniform. Journeys keeps closing doors because many mall-based locations no longer deliver the sales needed to justify the rent. Other specialty retailers watch occupancy costs, shorter dwell times and changing teen habits with equal caution. Yet the data shows affluent shoppers still visit quality centers. They spend when the mix of stores, restaurants and activities matches their expectations.
So Simon consolidates control of a premier luxury portfolio at a time when foot traffic is rising at the best properties. Genesco trims its mall exposure to focus on efficiency. The two moves are connected. They reflect the same sorting process that has defined retail real estate since the pandemic accelerated earlier trends. Top-tier assets gain share. Weaker ones lose tenants and traffic. The gap between them widens.
What comes next depends on execution. Simon must integrate the Taubman centers fully, lift their occupancy to match the broader portfolio and deliver on redevelopment plans. Retailers like Journeys must prove that a smaller, more selective store base can produce sustainable growth. Mall owners across the board will keep converting vacant space into uses that drive repeat visits rather than one-time transactions.
The numbers suggest the strategy can work for those who choose their battles carefully. Traffic is up. Sales productivity at premium malls is climbing. Consumers have not abandoned physical retail. They have simply become more selective about where they spend their time and money. Simon’s latest acquisition bets that the right malls, in the right markets, with the right mix, will keep winning. Early evidence from traffic reports and earnings indicates that bet is paying off.
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