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Is the American mall back?
A new report from Coresight Research says it could be — at least for high-end operators that have revamped their properties to bring in Gen Z-friendly tenants and top-tier experiences for visitors.
By mid-2025, the occupancy rate for malls hit 90.7 percent, up from a low of 85 percent in the first quarter of 2022, according to the report, which noted that demand for top space continues to outpace supply. However, leasing has been stronger in luxury malls, which recorded occupancy rates north of 95 percent last year, while non-top-tier malls saw an average occupancy rate of 90 percent.
Mall closures also played a role in boosting occupancy, according to Sujeet Naik, an analyst at Coresight who wrote the report, though it’s unclear by how much; there were 8,200 store closures confirmed or planned last year, with many of those retailers, like Claire’s and Forever21, known for being mall mainstays. The data stems from four publicly listed mall REITs — a small number because of the few public mall companies in existence. Coresight defines top-tier malls as those with luxury retailers and newer brands as tenants and located in affluent areas. Meanwhile, non-top-tier malls are located in less affluent areas and have more vacancies.
“There are certain malls that probably still need to go away,” said Haendel St. Juste, a retail REIT analyst with Mizuho. “The industry has been through a lot over the last 10 years but has come through. It’s stronger on the other side. There’s a real opportunity for the better malls to thrive with just capital investment and re-tenenting.”
High-end malls are also outperforming in terms of rental growth. In 2025, average base rents rose 4.5 percent for top-tier malls, compared to just 1.1 percent for non-top-tier malls.
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Visitors, especially younger ones, are returning to malls in droves and staying at them longer. Last year, indoor malls recorded a 1.3 percent year-over-year growth in foot traffic, compared to 0.6 percent for open-air shopping centers. The average visit at indoor malls, which lately have repositioned themselves as experiential destinations, clocked in at 72.9 minutes in 2025, compared to 66.6 minutes at open-air shopping centers.
Many mall operators have benefited from shuttering big-box retailers. Once thought to be the death knell for many malls, operators have been able to repurpose those spaces and find new tenants for them, often with higher rents.
These empty boxes have created valuable space for the mall operators, Naik said. “They can now rent it out to other emerging and new brands, who are more traffic drivers and more aligned with the modern consumer.”
For instance, mall REIT Macerich reported at the end of that year that it has commitments to fill its 30 anchor and big-box openings, spanning 2.9 million square feet. The company expects the replacements to bring in some $750 million annually in tenant sales and drive traffic, the report noted.
By “redeveloping, cutting those boxes into smaller spaces, you’re able to generate better economics and keep your malls fresh by bringing in new concepts,” St. Juste said.