CHICAGO — Lifestyle shopping centers, or open-air malls, may be one of the most undervalued retail asset classes currently. According to JLL, increased customer foot traffic, declining vacancies coupled with growing rental rates and broad-based expansion plans from retailers are bolstering confidence, as well as signaling that lifestyle shopping centers will come back strongly. While smaller grocery-anchored retail centers have dominated investment demand recently, the increase in COVID-19 vaccinations and reopenings are motivating shoppers — and investors — to return to other retail segments. Lifestyle centers were conceived as a modern-day interpretation of the mall and are known for their outdoor settings and incorporation of other uses like office, apartments and hotels. Their tenant mixes also usually include upscale, national chains, as well as specialty retail with dining and entertainment options. “Leasing demand from new tenants in the market, such as digitally native brands, as well as traditional mall retailers looking for an off-mall growth strategy, are accelerating the desirability of this asset class to consumers,” said Chris Angelone, senior managing director of JLL and co-leader of its capital markets retail division. “Investors are taking notice and will seek out performance and growth potential. Two to four years from now, …
