From his perspective, this will drive higher occupancy and sales figures on a per sq ft basis as the retail malls have evolved into lifestyle hubs for Gen Z to hang out together.
UOB KayHian is keeping a “buy” call on United Hampshire US REIT (UHREIT) given that US retail properties are experiencing a new renaissance due to historical low vacancy, while Gen Z is flocking back for experiential interactions at malls.
In his April 1 report, UOB KayHian’s analyst Jonathan Koh highlighted that Gen Z consumers are flocking back to physical malls as it offers a social and immersive experience that digital apps cannot replicate. According to Koh, this shift reflects “digital fatigue”, which drives a renewed appreciation for genuine physical experiences and spontaneity.
