The largest U.S. mall owner is grappling with the aftermath of a Dallas-area mall shooting, with plans to temporarily shutter what is one of Dallas-Fort Worth’s busiest shopping centers.
The regional 548,000-square-foot Allen Premium Outlets in Allen, Texas, is closed until at least Sunday, which is also Mother’s Day, according to its website. At least eight people were reportedly killed, including three children, after an armed gunman pulled up in a car and started shooting at pedestrians and shoppers in the outlet mall’s parking lot on May 6.
This is the second time Indianapolis-based Simon Property Group, which has more than 200 U.S. properties, has shut one of its retail centers because it was the place of a mass shooting. In July, a shooter killed three people in Greenwood Park Mall in Indiana. At the time, the mall was closed for two days, with some stores shut for longer, according to multiple media reports.
In the mall owner’s latest annual filing in February, executives acknowledged public safety as one of the risks to its business, with consumers not only avoiding in-person shopping to mitigate health concerns, but also “consumer perception of increased risk of criminal activity and civil unrest, including acts of terrorism, riots, random acts of violence, mass shootings or inappropriate or unacceptable behavior of other patrons.”
If any of the risks mentioned above occur at a Simon Property-owned center, executives told investors, “The relevant property could face material damage physically and reputationally, and the revenue generated by such property could be negatively impacted. Concern around safety risk may impact the willingness of consumers, tenants and tenants’ employees to shop and, or work at our properties, which could result in decreased consumer traffic and decreased sales at our properties, directly and indirectly impacting our revenue and overall asset value.”
As of last year, Simon Property reported annual revenue of $5.29 billion and net income of $2.14 billion. Last week, the company increased its full-year guidance in announcing its first-quarter results.
Allen Premium Outlets has about 120 outlet stores for brands, including Nike and West Elm. The outlet mall is 100% leased, according to CoStar data, and has been doing so well in recent years Simon Property expanded the 23-year-old property with the addition of H&M and Armani — adding about 122,000 square feet of retail space and about 1,300 parking spaces.
The expansion, completed in late 2017, added about 30 stores to the mall, as well as renovations to the existing retail space with updated seating, a new play area, Wi-Fi service for shoppers and additional landscaping.
In a statement on the outlet mall’s website, Simon Property said, “We are horrified by the senseless tragedy at Allen Premium Outlets and are outraged by the violence that continues to plague our country. Our thoughts and prayers are with the victims, their families and others affected by this heinous act.”
Simon Property did not immediately respond to an interview request from CoStar News.