The Indianapolis company upped its bid two weeks ago to $95.50 per share from $91, calling that its best and final offer and giving Macerich an April 1 deadline to respond. The new offer was valued at $23.2 billion counting debt.
Simon announced late Tuesday night that it had withdrawn the offer, shortly after Macerich's board unanimously rejected the bid.
Read MoreSimon Property raises bid for Macerich to $16.8B
The Macerich board concluded that now was not the right time to sell, said director Fred Hubbell in a printed statement.