David Simon, the CEO of the largest U.S. mall owner, is being remembered as an innovator who pioneered the reimagining of properties as well as a master dealmaker who successfully navigated two major global crises and major retail industry changes.
Simon, who died Sunday of cancer at 64, transformed his family’s regional company in the Midwest into what’s now Simon Property Group, a worldwide mall owner. The executive — holding the title of not only CEO but chairman and president of the real estate investment trust — has now passed the torch to his son Eli.
The 37-year-old son on Monday was named CEO and president of Simon Property, also retaining his titles of chief operating officer and director. He’s barely older than his father was when David was named company CEO at age 33 in 1995.
It’s the third generation of family leadership for a business that began in 1960 when brothers Melvin Simon — David Simon’s father— and Herbert Simon started developing shopping centers in Indiana. In 2024, Forbes reported Simon family members owned an estimated 10% of Simon Property, a large holding for a REIT of its size and underscoring their influence.
David Simon received industry praise partly for assembling a huge portfolio of successful malls, outlet centers and open-air properties during his 30-year tenure as head of Simon Property. He did it, in part, by closing a series of major acquisitions, a process that didn't seem to let up. Last November, for example, Simon Property purchased the remainder — for an estimated $900 million — of Taubman Realty Group to gain full ownership of roughly 20 upscale malls in affluent U.S. markets.
David Simon was “widely regarded as one of the most influential leaders in modern retail real estate,” according to Tom McGee, president and CEO of ICSC, the industry’s trade group.
“David was the definition of iconic for our industry,” McGee said in a statement. “His strategic brilliance, unparalleled drive and unwavering commitment to excellence reshaped retail real estate.”
Simon — known by some for his toughness as a negotiator and boss— is credited with understanding early on that traditional malls could not survive. The REIT has spent billions of dollars redeveloping its top-tier malls, adding housing, hotels, offices, more dining options and entertainment venues — experiential offerings — to bring repeat visitors to the properties. And it’s now reimaging its second-tier malls.
E-commerce rose in popularity during Simon’s tenure as a brick-and-mortar landlord. The Great Recession hit from 2008 to 2009. And the pandemic in 2020 shut down malls. But the CEO led the Indianapolis-based REIT though it all and was known to call out skeptics on Simon Property’s earnings calls. He was a relentless advocate for brick-and-mortar retail.
“Many have tried to kill off physical retail real estate, and in particular enclosed malls,” the CEO said on an earnings call in 2022. “And I need not remind you when physical retail was closed in COVID, all the naysayers saying that physical retail was gone forever. However, brick-and-mortar is strong, brick-and-mortar retail is strong, and e-commerce is flatlining.”
‘Unvarnished with his answers’
At times, Simon could be blunt and even profane when talking to analysts and others.
“While he wasn’t bashful with his feedback to us analysts, he was also unvarnished with his answers,” Piper Sandler said in a note on Monday.
Meghann Martindale, now principal, director of market intelligence, retail, at brokerage Avison Young, recalled working for Simon Property and David Simon in a post on LinkedIn.
“He was formidable, one of those leaders whose presence alone raised the bar in every room,” Martindale wrote. “During my time at Simon, nothing was scarier than walking into a meeting and having to tell David you were over budget and off your construction timeline on a development or missed your budget on a mall. There was nowhere to hide, you had to be accountable and speak with clarity.”
In hindsight, those experiences were a “great gift,” according to Martindale.
“They stripped away any fear I’ve ever had around tough conversations, high-stakes meetings, or presenting under pressure,” she said. “When you’ve navigated that level of intensity, everything else feels manageable and that has stayed with me the past decade.”
Simon brought his deal-making acumen from his stints as an investment banker at First Boston Corp. and then at Wasserstein Perella & Co. to Simon Property’s predecessor, his family business Melvin Simon & Associates, when he joined it in 1990. He was only 31 in 1993 when he led Simon Property’s initial public offering. It raised nearly $1 billion in what was then the largest real estate public stock offering in history.
No strategic changes expected
BMO Research issued a note on David Simon’s death, titled “Passing of a Legend; Ascension of a Scion,” on Monday.
“Eli has been visible meeting with investors and been well received by the Street,” BMO said. “We don’t expect a change in [Simon Property’s] strategy and have confidence [it] will continue to execute given its deep bench, but David’s passing is a clear loss.”
And Piper Sandler said, “We have confidence in Eli given the cultivation he has had since joining [Simon Property] in 2019, including more active public participation over the past year.”
Simon Property has owned or held interests in more than 250 properties comprising over 200 million square feet across North America, Europe and Asia, generating billions in annual revenue, according to the REIT.
In its note, Piper Sandler credited David Simon with “recognizing early on the value of outlets” and “rejuvenating struggling brands.” Simon Property, in partnership with other companies, has helped a number of ailing retailers — companies that lease stores in the REIT’s malls.
Mixed results on retailer rescues
In 2020 Simon Property teamed with Brookfield to acquire the J.C. Penney chain out of bankruptcy, saving it from liquidation. The REIT also invested in Authentic Brands Group to jointly purchase stakes in retailers such as Forever 21, Eddie Bauer, Aéropostale, Lucky Brand and Brooks Brothers.
Those efforts didn’t succeed in rescuing all those chains. Forever 21 and Eddie Bauer both ended up filing for bankruptcy and were liquidated.
Simon Property sold its stake in Authentic Brands for $1.45 billion in 2024. At the time, David Simon said the REIT had made “a significant profit” in the transaction.
Most recently, Simon Property invested $100 million for HBC’s acquisition of Neiman Marcus Group in December 2024. The REIT is in at least one dispute with the merged company, Saks Global, which filed for Chapter 11 protection in January.
Simon Property wants to terminate two Saks Global leases, one for Neiman Marcus in in Palo Alto, California, and for a Saks Off 5th at Woodbury Commons. The luxury retail conglomerate is fighting the REIT’s bid to terminate the leases in bankruptcy court.
On an earnings call in February, David Simon told analysts that he had driven a hard bargain in exchange for its investment in Saks Global even though it wrote off the $100 million.
“And so, we got the right to terminate two leases,” he said. “We got two buildings. And very importantly ... throughout our whole entire portfolio with Saks and Neiman and Off 5th, we got the right to build what we want so we don’t have to go get their approval.”
Simon Property didn’t respond to an email from CoStar News on Monday seeking a comment.
The REIT owns some of the biggest malls and outlet centers in the United States, including King of Prussia mall in the Philadelphia area; The Galleria in Houston, Texas; Roosevelt Field in Garden City, New York; Aventura Mall in Miami, Florida; Sawgrass Mills in Sunrise, Florida; and Woodbury Commons Premium Outlets in Central Valley, New York.