Simon Property Group Sees Surge in Early Retail Lease Renewals

Retailers are increasingly seeking to secure their positions in Simon Property Group malls by renewing leases as much as three years before their current agreements expire, according to company leadership.

Eli Simon, the Chief Executive Officer, President and Chief Operating Officer of Simon Property Group, disclosed the trend during the company’s first quarter earnings call on May 11, 2026. The company manages a portfolio of shopping, dining, entertainment, and mixed-use destinations across Asia, Europe, and North America.

Simon noted that retailers are now initiating discussions regarding lease expirations set for 2027, 2028, and 2029. While such early renewals were historically a phenomenon limited to luxury tenants, the company is now seeing similar behavior from legacy, non-luxury retailers within its existing portfolio.

We’re actually hearing from legacy retailers in our existing portfolio, non-luxury, that actually want to start having those conversations because I think they understand this pipeline too and the interest in our space.

Eli Simon

The shift in tenant behavior coincides with positive operating statistics for the company’s premium outlets and malls in the United States. According to an earnings release issued on May 11, 2026, the company recorded several year-over-year increases for the period ending March 31, 2026.

Occupancy for these properties rose 10 basis points to reach 96%. During the same period, reported retailer sales per square foot increased 11.8% to $819, and the base minimum rent per square foot grew 5.2% to $61.99.

A supplemental presentation released on May 11, 2026, indicated that U.S. Malls and premium outlets were a primary driver of financial performance, accounting for 77.1% of Simon Property Group’s net operating income during the first quarter.

The company’s leasing activity remained high in the first quarter of 2026. Simon stated that the company signed more than 1,100 leases, covering a total area of over 4.7 million square feet. Approximately 25% of that leasing volume consisted of new deals.

Regarding the current year’s cycle, the company has already completed more than 75% of its 2026 expirations. Simon noted that this pace exceeds the company’s progress during the same period last year and that the current pipeline of deals is significantly larger than it was at this time in 2025.

Occupancy gains, increased shopper traffic and higher retailer sales drove strong cash flow growth in the quarter, reflecting solid fundamentals across all our platforms, the resilience of the consumer, and the strength and breadth of tenant demand we have for our centers.

Eli Simon

Simon further characterized the demand from retailers as broad-based, noting that it extends across various categories and geographies, encompassing both new entrants and established legacy retailers.