This obscure legal clause is holding back US malls. Simon Property Group got Saks Global to forfeit it.

NodeGuardian

2026-03-29 12:34:35

Abstract generation in progress

Simon Property Group invested $100 million in Saks Global, ostensibly to help Saks acquire Neiman Marcus, but the key benefit for Simon was getting Saks to forfeit restrictive “reciprocal easement agreements” (REAs) at nearly 60 malls. These REAs, which give anchor tenants veto power over mall renovations, have long hindered mall revitalization efforts. Despite Saks Global’s subsequent bankruptcy and the need for Simon to write off the investment, CEO David Simon views the REA waivers as a significant gain, though some aspects like the reach of these waivers and other claimed benefits are being disputed.

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