Classification of Malls: So, Which Type of Mall Is Doing Well and Which is NOT?

Classification of Malls: So, Which Type of Mall Is Doing Well and Which is NOT?

I wrote about the classification of malls some years ago. At that time, I thought it was quite interesting that malls were not simply classified as:

Big mall. Small mall. Dying mall.

Haha. There is actually a more structured way of looking at them.

And after visiting quite a number of malls over the years, I think the classification makes even more sense today.

Because in Malaysia, we have a lot of malls.

The latest NAPIC data showed 988 shopping complexes with about 17.3 million sq m of retail space as at June 2025, with occupancy at around 79%. 

That’s a lot of retail space. So the question isn’t simply:

“Is this a big mall?”

The better question is:

“What is this mall supposed to do or for whom is this mall built for?”

#1 – The Community Mall

Let’s start with the smallest category.

The Community Centre typically has around 50,000 to 200,000 sq ft of net lettable area.

The idea is convenience. You don’t drive 30 minutes to visit it. You probably walk, drive or take a very short trip.

The typical anchors could include a supermarket, gym, school or other services.

And I actually like this concept. Because not every shopping trip needs to be an event.

Sometimes I just want to buy groceries. Get a haircut. (maybe?) Have dinner. (usually).

Pick up something. Then go home.

A well-managed community mall can be extremely useful because it becomes part of the neighbourhood’s daily life.

#2 – The Neighbourhood Mall

Move up one level and we have the Neighbourhood Centre. NAPIC’s classification puts this at around 200,001 to 500,000 sq ft.

The catchment is wider, usually less than about 30 minutes’ drive, and the tenant mix becomes more extensive.

You may find supermarkets, department stores, fashion, food and various services.

This is the kind of mall where I might say:

“Let’s go there because there are more choices.”

It is no longer simply about convenience. It becomes a place where people spend more time.

Food becomes more important. Entertainment becomes more important.

And increasingly, the mall itself becomes part of the lifestyle of the neighbourhood.

#3 – Regional Mall

Then we move into the Regional Centre, which is roughly 500,001 to 1 million sq ft.

Now we are talking about a mall that is expected to attract people from a much wider area.

NAPIC’s classification suggests a catchment of around 30 minutes to 1.5 hours.

This is where the tenant mix becomes much more interesting. Supermarkets.

Department stores. General merchandise. Fashion. Cinema. Entertainment. F&B.

And plenty of reasons for people to stay longer.

Think about malls such as MyTOWN Shopping Centre or Sunway Velocity.

You don’t necessarily visit because you need one particular item.

You go because there are many things you can do there.

#4 – Super Regional

And then we have the big boys. Super Regional malls.

These are generally more than 1 million sq ft of net lettable area.

The catchment can extend beyond one hour.

They attract visitors from outside the immediate neighbourhood and can also target tourists.

This is where malls such as 1 Utama, Mid Valley Megamall and Sunway Pyramid come into the conversation.

I personally like 1 Utama. I used to visit it almost every week. And the funny thing about 1 Utama?

I don’t need to take a photo of where I parked. Haha.

For some other malls, even after taking the photo, I still somehow cannot remember where the car is.

That’s when you know the mall is big.

#5 – But size doesn’t guarantee success

This is the part I find increasingly interesting.

A huge mall doesn’t automatically mean a successful mall.

Malaysia already has a lot of retail space.

And NAPIC’s data shows that there is still more coming.

There were around 34 shopping complexes in the incoming supply pipeline as of June 2025, with much of the concentration in Selangor, Kuala Lumpur and Johor. 

At the same time, some older or underperforming malls have closed or temporarily ceased operations for refurbishment.

Henry Butcher reported that total shopping mall space actually fell 3.86% in 2025, while occupancy improved from 77.6% to 78.6%. 

That tells us something.

The market is becoming more selective.

The best malls can still do very well.

The weaker ones may struggle.

#6 – What makes a mall successful today?

This is where I think the old definition of a mall needs to change.

Previously, a mall could survive by simply having:

Retail + supermarket + cinema + food.

Today?

Not enough.

People can buy almost anything online. So why should I drive to a mall?

The answer has increasingly become:

Experience.

I want to eat. (it has to be an experience…)

I want to meet friends.

I want entertainment.

I want something interesting to see.

I want my children to enjoy themselves.

I want to spend time there.

In other words:

The mall is competing for our time, not just our money.

And that’s a much harder competition.

#7 – What does this mean for property investors?

This is the part that matters to me.

If you are buying a property next to a mall, don’t simply say:

“This place has a mall.”

Ask:

“What type of mall is it?”

A community mall that is well occupied and serves a growing neighbourhood may actually be more useful to residents than a giant mall that is 40 minutes away.

And if you’re looking at commercial property inside a mall, the questions become even more important.

What is the footfall? Who are the anchors? What is the tenant mix?

How long have the major tenants been there? What is the occupancy?

Who owns and manages the mall? Is the catchment population growing?

And perhaps most importantly:

Why do people come here?

Because a beautiful building with plenty of empty shops isn’t a good investment.

SO, which mall do you like?

The original reason I wrote about mall classification was simply because I thought it was interesting.

But today, I think there is a bigger lesson.

Not all malls are created equal.

A 100,000 sq ft community mall and a 1.5 million sq ft super-regional mall are both called “malls”.

But they serve completely different purposes.

And with Malaysia already having close to 1,000 shopping complexes, the competition is going to become even more interesting.

The latest NAPIC data shows around 79% occupancy nationally, which means roughly one-fifth of retail space was unoccupied. 

So I wouldn’t simply ask:

“How big is the mall?”

I would ask:

“How relevant is the mall?”

Because size can attract attention.

But relevance brings people back.

For me, that’s the real test.

And yes, my favourite is still 1 Utama.

Mostly because I know where I parked.

Haha.

Happy mall hunting.

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Sources

• Original Kopiandproperty article — “Classification of malls in the Klang Valley. Your favourite mall is under which one?” — the original article, personal observations and mall-classification discussion that form the basis of this refresh. Original Kopiandproperty article
• NAPIC — Malaysia Retail Space Landscape Trends and Economic Influences — classification of shopping centres and discussion of future retail supply and oversupply risks. 
• NAPIC — Data Visualisation — official shopping-complex stock and rental data resources. 
• The Business Times — KL, JB set to flood Malaysia’s packed mall scene — latest data on 988 shopping complexes, 17.3 million sq m of retail space and around 79% occupancy as at June 2025. 
• EdgeProp — Inactive malls close, overall occupancy edges up — 2025 retail-space reduction and occupancy improvement. 
• EdgeProp — The definition of ‘success’ is changing for Malaysian malls — current discussion on experiential malls, new supply and the changing definition of mall success.