The U.S. retail market is showing signs of renewed momentum, and enclosed malls are beginning to re-enter the investment conversation. Larger-format retailers that historically favored standalone or power-center locations, including IKEA and Target, are increasingly considering enclosed mall locations, a shift that could signal stronger confidence in traffic, demographics and the long-term durability of the format. At the same time, improving operating performance, limited new supply and more favorable debt markets are beginning to change the risk-return profile of quality malls. In an IREI interview, David Monahan, senior managing director in JLL Capital Markets’ New York office, discusses why he believes the mall recovery is sustainable, what is drawing retailers back to enclosed locations, and whether institutional capital could be next to return to the sector.
According to JLL’s latest U.S. Ret
