The Week In News, But Shorter
August 10 – 16, 2026

A Weekly PropTech Newsletter bringing you industry updates from across the real estate spectrum

This week’s headlines may seem contradictory—consumers are frustrated with AI even as they become more open to AI-assisted purchases, while retailers invest in both merchant-owned apps and visibility in AI chatbot results. Together, they point to a broader shift in how shopping journeys begin and how customers move between digital and physical channels. For retail property owners, the takeaway is that stores must remain valuable destinations within an increasingly AI-mediated journey. Retailers will need flexible, tech-enabled spaces that support seamless discovery, fulfillment, pickup, returns and personalized experiences. Properties that help tenants connect digital engagement with compelling in-person experiences will be best positioned as AI reshapes retail traffic and customer relationships. Are you set up for success? If you’re not sure, DM us on LinkedIn and we’d love to help you get there.

Also this week, Target names a new chief to sort through all this AI stuff, Simon properties sees some upside from the fall of a department store, and summer mall visits stay hot. Also, ICYMI, David will be delivering a keynote on “making AI real in real estate” at IMN’s Pacific Northwest Middle-Market Multifamily Forum later this month. Join him there!

Digital Meets Physical

Why Consumers Are Frustrated With AI And What Retailers Can Do About It [Forbes] With consumers demanding transparency, authenticity, and genuine problem-solving, brands should now re-evaluate their AI implementation, focusing on seamless, human-centric experiences and clear value to rebuild faith and navigate what Alter Agents calls a “trust recession.”

Retailers tap AI shopping traffic but fight to keep customer data [Reuters] As shoppers increasingly turn to ChatGPT and Google’s Gemini for product recommendations, retailers are racing to appear in chatbot results while resisting efforts to cede customer data that underpin online sales.

NYC mayor backs measure that could transform last-mile delivery operations in city [Chain Store Age] Mayor Zohran Mamdani has announced his support of a measure that could bring a big change to how goods are delivered to consumers across the city’s five boroughs. The Delivery Protection Act, currently pending before the New York City Council, would create a licensing system for certain last-mile warehouses and distribution facilities while establishing new safety, training and labor standards.

Consumers warm up to agentic AI purchases [RetailDive] About four in ten (42%) of U.S. consumers say that AI tools extend the time it takes them to decide what to buy because AI displays more options to consider. And 59% of U.S. consumers credit AI platforms with highlighting brands they didn’t know. Forty-two percent of American millennials said they would allow AI agents to buy items for them within a $250 budget if they could return the purchase within seven days.

Why Merchant-Owned Apps Are Retail’s Fastest-Growing Sales Channel [PYMNTS] Merchant-owned apps are becoming more important to retail growth at precisely the moment when the traditional customer journey is beginning to break apart. Merchant-owned apps outperformed merchant websites on 11 of the 14 checkout capabilities measured.

Target names its first chief AI officer in a bid to remake the shopping experience [FastCompany] Target has appointed Chandhu Nair as its first chief AI officer as the retailer doubles down on the technology and its potential benefits for customers. Nair comes to Target after more than six years with Lowe’s, where he was most recently senior vice president of stores, data, AI, and innovation.

PropTalk

Simon poised to rake in millions more in rent thanks to Saks Global closures [RetailDive] In May, 1 million square feet of space was opened up due to retail bankruptcy – almost all from Saks Off 5th closures – yet the real estate investment trust’s occupancy level is equal to what it was at the end of Q1.

Placer.ai: Shopping center visits stay hot in July [Chain Store Age] Placer.ai’s July 2026 Mall Index revealed that malls’ momentum in the first half of the year continued going into the second half of the year, with year-over-year visits to shopping centers up across all three formats analyzed (indoor, open-air and outlet). Open-air shopping centers saw traffic up 5.1% in July, followed closely by indoor malls at 4.3%.

Fabletics to Add 45 Stores in U.S. and Overseas in the Next Year [WWD] Fabletics will significantly expand its retail footprint over the next year, adding 45 stores around the world. Fabletics operates 137 stores globally — 126 in the U.S. and 11 overseas. The plan is to triple its international footprint by opening about 20 stores over the next 12 months, along with 25 stores in the U.S.

How bad off is San Francisco retail? [RetailDive] For more than five years now, San Francisco has seemed to be the epicenter of store closures in the U.S., as crime and other troubles gave the city’s major retail corridors a bad reputation. Retail in San Francisco has never been entirely doomed, though, and now there are early signs of a comeback.

Q&A: New Centennial CEO talks entertainment background, evolving shopping centers [Chain Store Age] Dallas-based retail real estate investment firm Centennial has a new leader at the helm. Following the retirement of founder Steve Levin, Paul Kurzawa, a veteran of the commercial real estate and entertainment industries, officially took over as chief executive on June 30.

The mall comeback is real, and Florida is right in the middle of it [News-Press] Despite previous predictions, shopping malls are experiencing a resurgence, partly driven by younger generations. Data shows mall construction is the only retail segment growing, with occupancy rates and financing also on the rise.

The Lawsuit Splitting Simon Property Group’s Founding Family [Propmodo] Simon Property Group operates approximately 4,000 properties across North America, Europe, and Asia. The REIT owns roughly 230 million square feet of retail space. Herbert Simon co-founded the company in 1995 alongside his late brother Melvin. He is now suing members of his own family over control of SFG Company LLC, a separate private entity that holds family real estate assets outside the publicly traded REIT.