The world’s largest mall owner saw a slight dip in occupancy in the second quarter compared to last year, but asking rents experienced a nice bounce over the same period. More importantly, the property business offered up some information on the types of tenants they are on the lookout for.
Similar to the investment world, where investors eagerly anticipate Warren Buffett’s next move, property owners and landlords should be aware of Simon’s plans. The Indianapolis Business Journal reports that Simon is specifically targeting two types of tenants: restaurants and online retailers.
On the restaurant side, Simon executives revealed that the company has added 200 restaurants to rent rolls over the past five years—and it’s far from finished.
“The restaurant demand is great,” shared CEO David Simon.
“We are continuing to very much focus on restaurants throughout the portfolio,” added President and COO Richard Sokolov.
The focus on restaurants ties in with a problem that is faced by landlords and property owners across the nation. What do we do with all this space that’s been vacated by traditional retailers? Enter restaurants, which still manage to draw people from their homes. Numerous malls have even taken the step of splitting up space to accommodate several restaurants in spaces that were previously occupied by department stores.
Simon is also on the lookout for online retailers that are looking to expand their physical presence. The retailers believe that establishing a physical presence will enhance their online sales, while landlords and owners gain from the increased foot traffic from inquisitive customers eager to visit their beloved online brands. This scenario presents a mutually beneficial situation, and Simon is keenly interested in it.
“We’re working with, frankly, scores of them. It’s certainly going to be a source of growth for us going forward in the years ahead,” Sokolov said.
The company also touched on some of its larger expansion and redevelopment projects in the pipeline, including Jersey Gardens in Elizabeth, New Jersey, and Sawgrass Mills in Sunrise, Florida.
“We’re very comfortable and confident, even though retail sales have been anemic this year… I don’t think we are backing off at all our redevelopment and expansion portfolio,” shared Simon.
