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

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Simon Property Group leveraged a $100 million investment offer into Saks Global to get the luxury department store company to forfeit reciprocal easement agreements (REAs) at nearly 60 of its malls. These REAs are legal clauses that have historically granted anchor tenants veto power over mall renovations and changes, hindering modernization efforts. Although Saks Global has since filed for bankruptcy and the investment is largely lost, Simon’s CEO views it as a strategic win, allowing the REIT to move forward with property development without needing anchor tenant approval.

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