U.S. malls split between thriving luxury centers and declining regional sites

American shopping malls are diverging into two distinct paths. Premium, experience‑focused centers in prime locations such as Houston’s Galleria, King of Prussia near Philadelphia, and the Mall of America in Minnesota continue to attract tens of millions of visitors annually, report high occupancy rates above 95 % and enjoy rising rents.

In contrast, lower‑tier regional malls are facing accelerating closures. From a historic peak of about 1,500 enclosed malls, fewer than 700 remain fully functional today, and roughly 1,200 still operate across the United States. Projections suggest only 900 will be left by 2028. Anchor retailers including Macy’s and JCPenney have announced hundreds of store shutdowns, driving vacancy rates for Class C malls above 13 % and prompting a cascade of lease terminations. The overall retail mall vacancy rate sits near 5.6 %, with negative net absorption of 1.2 million square feet recorded in early 2026.