By Brannon Boswell | April 21, 2025 | As published by CoStar News
The nation’s largest mall owner is investing millions in upgrades in one of the country’s most in-demand retail hubs, a high-stakes example of how landlords are remaking aging properties to edge out competitors in attracting tenants and shoppers.
In the affluent suburbs of Orange County, California, where retail demand is outpacing the property supply and rents are climbing, Simon Property Group is responding particularly strongly to growing competition for retailers to occupy space by adding new stores and restaurants at two of its existing malls.
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In Orange County, strong underlying retail fundamentals are helping to lure a new wave of investment. Retail space availabilityin the market fell to 3.9% in the second quarter of 2025, one of the tightest rates in the nation and a 16-year low, according to CoStar. The higher national availabilityrate of 4.8% has edged up this year as Orange County’s has dropped even further.
“Outdoor living is such an integral part of the Orange County lifestyle, and creating more open-air experiences is a significant point of emphasis in our plans,” Patsy Sanquist, general manager at The Shops at Mission Viejo, said in a statement.
To be clear, not all malls are receiving this level of retail reinvestment. Aging centers in less affluent or less strategic locations — such as Orange County’s Westminster Mall at 1025-2015 Westminster Mall — are being entirely redeveloped as multifamily housing with limited retail. But for well-located properties with strong demographics, owners are putting capital to work, Hammond said.
Reinvesting in suburbs
Landlords in Orange County want to land leases by touting in-demand features among consumers — from open-air gathering spots to a diverse shopping roster complete with immersive stores — according to Matt Hammond, partner and senior vice president at Coreland Companies, a Tustin, California-based property management firm and brokerage active in the area.
“Consumers are prioritizing value more than ever, and at Brea and Mission Viejo, that value comes in the form of experience,” Hammond told CoStar News. “These renovations are about dining, entertainment, and a reason to gather. That’s what people are looking for now —especially in suburban markets with a lot of work-from-home professionals.”
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