![]() ![]() I find it ironic that anyone would listen to Simon about the future of physical retail. Is suburban retail (malls, too) primed for a comeback? – RetailWire.Simon Property Group, Inc.’s (SPG) CEO David Simon on Q1 2021 Results – Earnings Call Transcript – Seeking Alpha.Simon Property Group Reports First Quarter 2021 Results And Raises Full Year 2021 Guidance – Simon Property Group.Simon’s occupancy rate stood at 90.8 percent at the end of March with rent per square foot rising 0.6 percent over last year, according to the company’s earnings release. Apparel and footwear are categories that are heating up and brands in those spaces are looking for room to grow at Simon’s malls, he said. He spoke of Crocs, which had “lost its mojo,” now coming back strong and looking to open shops. Simon is also seeing brands looking to sign new leases as consumer-direct sales become more important to their performance. “I’d say we generally feel pretty good and much better than we felt, you know, in a long time,” he said. He cited multiple deals in the works with American Eagle Outfitters and Urban Outfitters as causes for hopefulness. Simon said that the company’s malls were also seeing significant interest from strong retailers looking to expand their store presence. “They want to come in, retrofit it get open quicker,” he said. He pointed to a very high level of demand by restaurants looking to come into the company’s malls and fill space vacated by other operators who left as a result of the pandemic. New lease activity at Simon’s properties have begun to rebound, according to Mr. Simon’s properties, including enclosed and open air facilities, he said, are a “real presence” for the company in California that he expects will begin to deliver “benefits” as the year progresses. DisneyLand in California has only recently reopened and the state, as a whole, has about a “nine month lag” to make up. Simon contrasted Florida to California, where the economy opened later. He specifically called out activity at Simon properties in California and New York that he is hoping to see pick up as the pandemic comes under further control and as international tourists return to the U.S. He did not fully jump on the optimist bandwagon, however, pointing out that consumers are returning in significant numbers in some locations but not in others. Simon, speaking on his company’s first quarter earnings call, described a shopping atmosphere in which consumers are experiencing “some level of euphoria” as they return to malls to shop. ![]() Simon Property Group CEO David Simon offered answers to analysts yesterday that were one part optimistic and another cautious on the prospects for the company’s malls this year. ![]()
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