You’ve seen the name. Maybe on a directory at your local mall or a press release about a massive corporate merger. David Simon and the Simon Property Group (SPG) are essentially the architects of the modern American shopping experience. But honestly, if you listen to the "retail is dead" crowd, you’d think they were presiding over a crumbling empire of empty food courts and shuttered department stores.
The reality? It’s the exact opposite.
While smaller mall operators are folding, David Simon—the CEO who’s been at the helm since 1995—is playing a completely different game. He isn't just a landlord. He’s a Wall Street-trained dealmaker who treats real estate like a high-stakes chessboard. Under his watch, the company has transformed from a family-owned Indianapolis developer into the largest retail real estate investment trust (REIT) in the world.
By early 2026, Simon Property Group hasn't just survived the "retail apocalypse"—they’ve basically rewritten the rules for what a shopping center even is.
The Strategy Behind the David Simon Property Group Empire
Most people don't realize that David Simon started on Wall Street. He was at First Boston and Wasserstein Perella & Co., specializing in mergers and acquisitions (M&A) and leveraged buyouts. This is crucial. It’s the reason why, when he joined his father Melvin and uncle Herbert at the family business in 1990, he didn't just want to build malls; he wanted to consolidate the entire industry.
He took the company public in 1993 in what was, at the time, the largest REIT IPO in history, raising $840 million. Since then, he’s orchestrated more than $38 billion in deals.
But it’s not just about getting bigger. It’s about owning the right dirt.
Quality Over Quantity (The Class A Obsession)
Simon focuses on "Class A" properties. These are the high-traffic, high-sales-per-square-foot locations like The Galleria in Houston, Copley Place in Boston, or Woodbury Common Premium Outlets.
While the "zombie malls" in rural areas are being turned into pickleball courts or warehouses, Simon’s flagship properties are hitting record numbers. As of late 2025, their portfolio averaged over $730 in sales per square foot. That doesn't happen by accident.
Buying the Tenants
This is where it gets weird—and brilliant. During the pandemic, when retailers were dropping like flies, David Simon did something radical. Instead of just watching his tenants go bankrupt, he started buying them.
Through a joint venture called SPARC Group (partnering with Authentic Brands Group), Simon Property Group took stakes in:
- J.C. Penney
- Brooks Brothers
- Forever 21
- Lucky Brand
- Eddie Bauer
Basically, they became their own tenants. It was a defensive move to keep the lights on in their malls, but it also gave them a cut of the e-commerce profits. If someone buys a Brooks Brothers shirt online, the David Simon Property Group now gets a piece of that action.
What’s Happening Right Now (2025-2026 Update)
If you walk into a Simon property today, it probably looks less like a 1980s movie set and more like a mini-city. They are currently in the middle of a $4 billion pipeline of redevelopments.
The Mixed-Use Pivot
The big buzzword in Indianapolis (their HQ) is "mixed-use." They are tearing down dead Sears and Macy's wings and replacing them with:
- Luxury Apartments: They’re literally building housing on top of the malls. The Fashion Valley project in San Diego, for instance, is adding 850 residential units.
- Health and Wellness: Life Time Fitness clubs are becoming the new anchor stores. Instead of buying a sweater, you're going for a workout.
- Hotels: Adding an AC Hotel or a Marriott to a mall site ensures a constant stream of high-spending travelers.
In January 2025, they even doubled down on Europe, dropping €350 million on two luxury outlet malls in Italy. Then, in March 2025, they opened the Jakarta Premium Outlets in Indonesia. They aren't retreating; they're expanding into global luxury markets.
Why Investors Still Care About SPG
Let’s talk money. Honestly, REITs are usually boring, but David Simon Property Group is a different beast.
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Their Q3 2025 revenue hit $1.60 billion, which was an 8% jump year-over-year. For a company that owns "dying malls," that's a pretty loud statement. They also raised their quarterly dividend to $2.20 per share (an annualized $8.80), yielding around 4.8% as of early 2026.
Investors like the safety of the cash flow. Because Simon has such a diverse portfolio—traditional malls, premium outlets, "The Mills" centers, and international holdings—they aren't dependent on any one retailer or region.
The David Simon Leadership Style: Hard-Nosed and Unfiltered
David Simon is known for being... well, blunt. In earnings calls, he doesn't use the typical corporate-speak. He’s been known to call out analysts and competitors. He once famously said that the mall has to become a "smarter box."
He views himself more as an owner-operator than a corporate bureaucrat. He’s often quoted saying that you have to make decisions as if you own 100% of the business. That "thinking like an owner" mentality is what allowed him to take risks like the Taubman Centers acquisition for $3.4 billion right as the world was shutting down in 2020.
Most people thought he was crazy. He just saw a chance to buy a rival’s high-end portfolio at a discount.
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Common Misconceptions About the Company
"Malls are dead."
Some are. Simon's aren't. There's a "bifurcation" happening in retail. The top 10% of malls are thriving while the bottom 50% are vanishing. Simon owns a huge chunk of that top 10%.
"Online shopping killed the physical store."
Actually, Simon’s data shows that physical stores often act as a billboard and a return hub for online brands. Even "digitally native" brands like Warby Parker and Allbirds are clamoring for space in Simon malls because that's where the foot traffic is.
"They just collect rent."
Not anymore. With their investments in brands and their massive redevelopment projects, they are becoming an integrated lifestyle and investment platform.
Actionable Insights for 2026
If you're looking at David Simon Property Group from a business or investment perspective, here is what you need to track:
- Watch the "Mixed-Use" Completion Dates: The real value in SPG right now isn't the retail; it's the residential and office components. When the 850 units at Fashion Valley or the Life Time projects in Orange County (slated for spring 2026) go live, look for the "NOI" (Net Operating Income) jump.
- Monitor the SPARC Group Exit: Simon has hinted at eventually "monetizing" their stakes in brands like Authentic Brands Group. A sale or IPO of those retail assets could provide a massive cash infusion.
- Check the Sales Per Square Foot: This is the "health" metric for any mall. If this number stays above $700, the "retail apocalypse" narrative remains a myth for this specific company.
- Look at International Growth: With the Jakarta and Italy moves in 2025, it’s clear Simon is looking for growth outside the saturated U.S. market. Any new joint ventures in Asia or Europe are a signal of where the next decade's revenue will come from.
Whether you love the mall or haven't stepped foot in one for years, David Simon and his team have built a resilient financial machine that basically ignores the "death of retail" headlines by simply owning the best real estate on the planet.