The Real Deal Miami

Mall prices to stay around 2004 levels, Simon says

September 16, 2009 12:36PM

U.S. shopping mall values may only return to their 2003 or 2004 levels when the commercial real estate market recovers, Simon Property Group CEO David Simon said, which could represent a 23 percent drop in prices. Sales of retail properties nationwide dropped 71 percent in the first half of this year. Sellers have also become slightly more realistic, Simon said, with asking prices around 12 times the cash flow from a mall, rather than 20 times the cash flow. Simon said that his company is now looking at possible properties to acquire and has about $3.8 billion with which to do it.