Are Class A Malls the Next Hot Retail Format?

Although some believe malls to be a fading retail format, a closer look at the data reveals a more nuanced story: not only do malls remain relevant, but in many cases, they are outperforming other retail formats and still have room to grow. When malls are well-located, well-capitalized and well-managed, they continue to serve as regional retail anchors, consistently attracting strong occupancy, steady visitation and—most importantly—high sales performance. This is especially true for Class A malls, which not only exhibit durable fundamentals but continue to evolve through new tenants, experiential programming and technology integration that engages today’s consumer.

Class A malls are not merely holding steady—they are excelling.

Key Takeaways

• Class A malls have emerged as one of the highest-performing retail formats over the past year, with high occupancy and growing sales, and are positioned for continued success through 2025 and beyond. While the broader mall format has fallen out of favor, limited new supply has maintained their appeal to retailers. At the same time, well-capitalized centers have leveraged emerging technology to stay relevant.
• Foot traffic at Class A malls remains steady—continuing to resonate with consumers as both a shopping destination and a “third place” across generations.
• Asking rents continue to rise while available space declines—one of the clearest illustrations of supply and demand in today’s retail real estate market.
• Mall development has been even more limited than overall retail, helping to preserve strong fundamentals due to the absence of new competition, and encouraging reinvestment into existing assets.