Mall owner Simon Property Group Inc. is in talks with Amazon.com Inc. about the e-commerce giant potentially taking department store space in its properties, according to The Wall Street Journal.

Simon, which counts Fashion Centre at Pentagon City and Potomac Mills among its Greater Washington properties, has been discussing turning the spaces into Amazon distribution hubs, according to the report. The talks have centered on former or currently occupied J.C. Penney and Sears stores, according to the report.

Pentagon City, which is near Amazon’s second headquarters in Arlington, does not have current or former space from either retailer. Potomac Mills has a J.C. Penney location.

A deal with Simon would give Amazon additional distribution hubs near residential areas. Simon counted 74 combined locations of the two department store retailers as of May.

(WBJ)