What: The US mall sector is increasingly divided, with top-tier, experience-driven malls thriving while underinvested properties struggle with declining occupancy and relevance.

Why it is important: As consumer expectations evolve, only malls that adapt with immersive experiences and strong tenant mixes are positioned for long-term success.

The American mall landscape is now defined by a widening gap between thriving, experience-driven destinations and struggling, underinvested properties. Top-tier malls in affluent areas are seeing robust foot traffic, high occupancy rates, and strong sales, thanks to continuous reinvestment, innovative tenant mixes, and a focus on turning shopping into a social or entertainment outing. Operators like Simon Property Group and Macerich are leading the way, reporting high occupancy and sales per square foot, and investing heavily in redevelopment and experiential upgrades. In contrast, many B- and C-rated malls face persistent vacancies, declining relevance, and complex challenges in repurposing or redeveloping their assets. The process of converting these properties into mixed-use or alternative spaces is often hampered by legal, infrastructural, and capital barriers. As consumer preferences shift toward immersive, social, and tech-enabled retail experiences, only those malls that can deliver on these expectations are likely to remain competitive and profitable in the long term.

IADS Notes: Recent IADS sources confirm that the US mall landscape is undergoing a profound transformation, marked by a widening gap between thriving, experience-driven class A malls and struggling class C/D properties. The Financial Times in January 2026 documents how premium malls are attracting affluent shoppers, luxury brands, and innovative tenants, while older malls face repurposing or demolition as the traditional anchor model collapses. The Economist in April 2025 highlights the resilience of well-positioned malls, with operators like Simon Property Group and Macerich seeing significant value increases through strategic repositioning and youth engagement. The Los Angeles Times in March 2025 underscores the surge in experiential retail, with landlords converting spaces into interactive entertainment venues to attract younger consumers and drive foot traffic. Retail Dive in August 2025 details how department stores like Dillard’s are partnering with developers to revitalize regional malls, demonstrating that targeted investment and anchor tenant leadership can sustain relevance even in tertiary markets. Finally, Inside Retail in February 2026 illustrates how Simon Property’s integration of digital and physical experiences, combined with operational agility and community focus, is driving the sector’s recovery and disproving the narrative of a retail apocalypse. Collectively, these sources show that the future of US malls will be shaped by innovation, experiential offerings, and the ability to adapt to evolving consumer expectations and local market dynamics.

In the US, only the top tier malls attract shoppers and capital