Simon wants to upgrade Class B malls

After years of prioritizing CapEx to help turn Class A malls into A+ trophy malls, Simon Property Group is right to shift its excess capital toward turning B malls into A malls.

It is not difficult to turn a B+ mall into an A- mall through redevelopment, re-leasing, consumer marketing, etc. Simon, with its very powerful leasing resources, certainly has the ability to identify and attract highly productive retailers to replace underperforming retailers through lease expirations. Simon can also buy out tenants to replace them with more productive tenants that will pay higher rents. Achieving better sales also pushes demand from the most desirable retailers. This alone can turn a B+ mall into a Class A- mall.

Read more: Simon seeks rent growth by upgrading outdated, second-tier shopping centers (CoStar News)