What: SPG and many other landlords have posted record sales in 2023.

Why it is important: Their results hide the fact that the situation is increasingly unsustainable for their customers.

The article discusses how major department stores and mall owners like Simon Property Group, Macerich, and CBL have experienced historic leasing years, despite a decline in tenant sales per square meter. It highlights the natural tension between landlords seeking to maximize income through higher rents and retailers facing decreased sales productivity. This dynamic, exacerbated by the trend of reporting financial metrics that may obscure the real costs of operating a business, raises concerns about the sustainability of high retail occupancy costs.

What can be read between the lines of landlords’ excellent annual reports