The U.S. shopping center industry appears to be back in growth mode, based on comments from the two largest mall REITs, which reported their year-end results this week. And omnichannel retailing is in large part driving the expansion, said the CEOs of Simon Property Group and General Growth Properties in their respective fourth quarter analysts calls.
“I expect [omnichannel retailers] to drive traffic and distribute through their store, said Simon Chairman and CEO David E. Simon. “Over time, store location will become more valuable because, instead of building a bunch of distribution centers or trying to figure out how to get various online purchases to the consumer, the most effective and perhaps cost-effective way is to use their existing store.”
Simon Property Group reported that 2013 FFO on a per diluted share basis rose 10.9% over 2012. Occupancy for the year rose 80 basis points to 96.1%, and total sales per square foot was up 2.5% to $582.
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