Retail Productivity Rises as Luxury Malls Outpace Sector

Luxury malls lead retail recovery as sales per square foot surge, with top centers outperforming amid shifting consumer trends.

March 25, 2026

Nina Dale

Retail productivity at top malls is rising, with sales per square foot up significantly.
The top 100 malls represent half of the sector’s value, while lower-tier malls lag behind.
Luxury malls see high occupancy rates and strong performance, driven by affluent shoppers.
Gen Z spending boosts mall visits, adding momentum to the recovery.

Key Takeaways

Luxury Malls See Strong Sales Growth

Retail productivity at leading US malls is surging, especially at luxury-focused centers, reports Globe St. Simon Property Group’s assets, such as Roosevelt Field near New York City, report occupancy rates above 96% and sales reaching up to $1,250 PSF. Brookfield’s GGP division also saw sales per square foot at premier properties rise 60% since 2019. These gains are largely attributed to affluent consumers, who now account for nearly half of all retail spending.

Retail Productivity Gap Widens

The gap between top-performing malls and struggling properties continues to grow. The top 100 US malls now represent 50% of the sector’s total value, but the bottom 350 account for just 10%. Class A mall revenue has been growing 5% annually, and CMBS lending in the mall sector doubled to $8B between 2024 and 2025. Open-air and indoor malls have both seen year-over-year increases in foot traffic, reversing declines observed in late 2025.

Gen Z Revives Mall Activity

Gen Z is emerging as a significant driver of retail productivity in malls. Their discretionary spending is outpacing other generations, with global retail spend expected to reach $12T by 2030. This trend aligns with broader shifts in where younger Americans are choosing to live and work, often favoring vibrant, amenity-rich urban areas that naturally support higher retail engagement. Data shows younger shoppers allocate more of their budget to retail, helping to boost traffic and sales at malls nationwide.

Signs of Renewed Lender Confidence

Lenders are starting to show renewed confidence in malls with strong cash flows, according to Trepp. While challenges remain for many properties, especially those facing loan maturities and mixed foot traffic, rising sales volumes and the increased spending power of Gen Z are keeping the top malls on a growth trajectory for retail productivity.