What: Shopping malls are evolving through AI, flexible leasing, and sustainability, responding to new consumer behaviours and market pressures.

Why it is important: Integrating AI, new commercial models, and sustainability is now critical for mall operators to remain competitive, as shown by recent market leaders.

The retail real estate sector is undergoing a profound transformation as shopping malls adapt to the demands of a digital-first, experience-driven era. AI and advanced analytics are empowering operators to make sharper decisions, optimise layouts, and enhance both tenant and customer experiences, as demonstrated by Liverpool One’s adoption of real-time footfall analytics. Gen Z’s growing economic influence is compelling retailers to shift from traditional approaches to strategies that prioritise technology, flexibility, and social engagement. Malls are increasingly being reimagined as experience hubs, with projects like Singapore’s City Square Mall showcasing how AI, sustainability, and community-centric design can create vibrant, relevant destinations. Flexible leasing models, such as Simon Property Group’s micro-spaces, are enabling emerging brands to bridge digital and physical retail, while sustainability is becoming a foundational element of innovation and operational strategy. These developments collectively signal that the future of shopping malls lies in their ability to integrate technology, adapt to shifting consumer values, and embed sustainability at every level, ensuring continued relevance and resilience in a rapidly changing retail environment. 

IADS Notes: In November 2024, Liverpool One’s use of AI analytics set a benchmark for operational optimisation in malls. February 2025 saw Retail Week highlight Gen Z’s transformative impact on retail strategies. Singapore’s City Square Mall’s April 2025 renovation illustrated the power of blending AI and sustainability for experiential retail. Simon Property Group’s micro-space initiative in September 2025 exemplified the rise of flexible, omnichannel leasing models. Finally, Euromonitor’s February 2025 report confirmed that sustainability is now a baseline for retail innovation and competitiveness.

AI will anchor tomorrow’s shopping malls