Walk into almost any high-end mall in the United States, and you're standing in a house that David Simon built. Well, technically, his father Melvin started the engine back in 1960, but David is the one who took a family developer and turned it into a global juggernaut.
People have been calling for the "death of the mall" for decades now. Honestly, it's become a bit of a cliché. Yet, here we are in 2026, and David Simon and Simon Property Group are still standing, arguably stronger than they were before the world went sideways a few years ago.
How? Because David Simon doesn't just collect rent. He's basically a Wall Street shark who happens to own real estate.
The Wall Street Architect of the Modern Mall
Most real estate guys start by swinging hammers or selling houses. David took a different route. He went to Columbia for his MBA and then cut his teeth at Wasserstein Perella, specializing in M&A and leveraged buyouts.
That financial DNA is everywhere in the company. When he took over as CEO in 1995 at just 34 years old, he didn't just want to build shopping centers; he wanted to consolidate the entire industry. He’s the guy who orchestrated the $1.5 billion merger with DeBartolo Realty back in '96, which was basically the first "mega-merger" of the REIT world.
Fast forward to today. The portfolio is massive. We're talking about over 230 properties globally. But if you think he's just sitting on a pile of 1980s food courts, you’ve got it wrong.
Why David Simon is Betting Against the "Retail Apocalypse"
There’s this common misconception that e-commerce killed the physical store. David Simon has been very vocal about how the market "unequivocally misprices" high-quality enclosed malls. In a 2025 earnings call, he even joked that admitting how undervalued these properties are was "probably pretty stupid" because it tipped off his competitors.
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He isn't buying just any mall. He’s buying the right malls.
- The Taubman Acquisition: He spent 17 years chasing Taubman Centers, finally closing the deal during the height of a pandemic when everyone else was running for the hills. He secured an $800 million discount because he had the guts to wait for the right moment.
- Brickell City Centre: In mid-2025, Simon Property Group swallowed up the remaining interest in Miami’s Brickell City Centre for about $500 million. This isn't a traditional mall; it’s an "urban hub" with a glass canopy called a Climate Ribbon.
- The "B" Mall Pivot: While everyone focused on the luxury "A" malls, David started dumping $500 million into revitalizing "B" properties. He’s not just putting in another Gap. He’s adding healthcare providers, fitness centers, and apartment complexes.
Basically, he’s turning malls into neighborhoods.
The Unconventional Strategy: Buying the Tenants
This is where things get kinda weird for a landlord. Most landlords just kick out a tenant if they can't pay the rent. Not David.
Through a joint venture called SPARC Group, Simon Property Group started buying its own tenants. JCPenney, Forever 21, Brooks Brothers, Lucky Brand—they’re all part of the family now. Critics called it a "house of cards" strategy. They said he was just delaying the inevitable.
But look at the numbers. By owning the retailers, Simon keeps the lights on, avoids massive vacancies that can trigger "co-tenancy" clauses (where other stores can lower their rent if an anchor leaves), and actually makes a profit on the retail side. It’s a vertical integration play that most REIT executives wouldn't touch with a ten-foot pole.
Simon Property Group in 2026: The Reality Check
It hasn't all been sunshine and dividends. If you look at employee reviews on sites like Comparably, David Simon often lands in the bottom 10% for CEO ratings. Employees sometimes describe the culture as high-pressure and "old school." It’s a stark reminder that being a brilliant financial engineer doesn't always make you the most popular boss in the breakroom.
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There are also the macro headwinds. Interest rates have been a roller coaster. Tariffs on imported goods have squeezed the margins of his tenants. And yes, the "S" word—Sustainability.
To his credit, David hasn't ignored it. The company is aiming for a 68% reduction in direct emissions by 2035. They’re installing EV chargers and solar arrays because, frankly, it’s good for the bottom line.
What Most People Miss About the Strategy
People see a mall and think "shopping." David Simon sees a mall and thinks "logistics and experience."
He’s been incredibly smart about data. Simon malls use real-time tracking and mobile-focused promos to keep people in the building. He’s also leaning into "experiential" retail. Think of the Jakarta Premium Outlets that opened in 2025 or the expansion into Italy. These aren't just places to buy shoes; they’re tourist destinations.
The strategy is simple:
- Consolidate the best assets.
- Diversify by adding residential and office space (like the 850 apartment units being built at Fashion Valley in San Diego).
- Control the ecosystem by owning the retailers when necessary.
The Bottom Line
David Simon is a polarising figure. He’s a "quiet billionaire" who once turned down a reality TV invitation with a hard "absolutely, positively, unequivocally—no." He doesn't want to be a celebrity; he wants to be the last man standing in retail.
Whether you love malls or haven't stepped foot in one since 2012, you have to respect the hustle. He’s managed to keep a $60 billion empire relevant in an era where everyone predicted its demise.
If you're looking to understand where the retail world is headed, stop watching the tech giants for a second and look at what's happening at your local Simon mall. It’s likely becoming a lot more than just a place to buy a pair of jeans.
Your Next Move
If you're an investor or just a retail nerd, keep an eye on the "mixed-use" filings for Simon properties in your area. The real growth isn't in more stores; it's in the apartments and clinics filling up the old Sears wings. You should also watch the SPARC Group’s next acquisition. If a major brand is struggling, David Simon is likely already in the room with a checkbook and a plan to save his rent roll.