Every day we are transforming retail on streets, in malls, in lifestyle centers and
outlet centers for our clients.
In fact, many communities want to
see outlet centers built because of the tremendous amount of sales tax revenue they bring in.
I could definitely use a day to recover from the excitement after I find some great shoes on clearance; or when I've walked a half marathon at the
local outlet center!
When outlet center popularity began to gain momentum a few years back, a lot of retailers jumped on the bandwagon with a healthy dose of enthusiasm.
«Given the fact that real estate is so expensive in urban areas I doubt that
urban outlet centers will be a new phenomenon,» he notes.
ARF's Endless Summer — Pet Adoption event on Saturday, September 9 at the
Tanger Outlet Center in Riverhead was a BIG success!
Save time to shop at Tanger
Outlets Center at Five Oaks offering over 110 brand names to choose from.
Chelsea Property Group, a developer
of outlet centers, entered the Japanese market in 1999 in partnership with Mitsubishi Estate Co. and Nissho Iwai Corp. and is now Japan's biggest outlet owner with four centers and a fifth planned.
«We've seen a number of new players enter the market,» says Scott Doksansky, New Plan's assistant vice president of
factory outlet centers.
To put that in perspective, the total
outlet center industry comprises about 50 million sq. ft., while the retail market in Chicago alone spans 200 million sq. ft.
For example, outlet REITs have historically posted the lowest returns for retail REIT investors -LRB-.79 percent as of July 1, 1997, according to NAREIT), but two of the largest
outlet center REITs — The Mills Corp., Arlington, Va., and Horizon Group, Muskegon, Mich. — are taking steps to rid themselves of that shadow.
Simon Property Group Inc., Calloway REIT and SmartCentres announced plans to develop their second
Premium Outlet Center in Canada.
Simon Property Group Inc. and Tanger Factory Outlet Centers Inc. will develop
upscale outlet centers in Charlotte, N.C. and Columbus, Ohio.
The
Horizon Outlet Center in Tulare, Calif., for example, reported first quarter 1999 same - store sale increases of 7 % over the first quarter of 1998.
And in this, Simon, which controls the largest mall portfolio and the
largest outlet center portfolio in the country, has a tremendous advantage.
Last spring, both Simon and Tanger announced
outlet center projects in the town of Halton Hills, a suburb of Toronto.
In April, Simon signed a deal with BR Malls Participacoes S.A. to
develop outlet centers in Brazil, with the first project scheduled to be built in Sao Paulo by 2013 and started construction on Phase I of Shisui Premium Outlets, a 234,000 - sq.
(St. Louis Premium Outlets is a product of a joint venture between Simon, Woodmont Outlets and EWB Development LLC, all experienced
outlet center developers.)
As we predicted back in May, the competition to build
new outlet centers in the U.S. continues to be fierce.
Simon Property Group and Tanger Factory Outlet Centers control 72 percent of the 70.8 - million - square - foot
outlet center portfolio in the U.S., according to ICSC.
Showpiece in San Diego County
Viejas Outlet Center, located in Alpine, Calif., opened in May 1998 and has been widely recognized in outlet circles for its overall architectural splendor and use of environmental graphics.
Both Simon and Tanger have been working
on outlet centers in Canada, including Simon's 500,000 - sq.
One high - ranking industry source says that for developers targeting
outlet center sales on par with Simon's levels, which average about $ 550 per sq. ft., there are maybe 10 untapped markets left that fit the necessary trade area characteristics.
Retail REITS
include outlet centers, grocery - centered strip malls and shopping locales anchored by big box retailers.
Wolf Theiss has advised McArthurGlen, a developer, owner, and operator of
designer outlet centers in Europe and Canada, on matters relating to the expansion of its center in Parndorf.
And Simon's outlet arm, Chelsea, is developing Round Rock Premium Outlets, a 430,000 - square -
foot outlet center in the northern suburb of Round Rock where Dell Inc. is based.
It turns out that in addition to all the U.S. players trying to break into
outlet center development in U.S. and Canada, there are European companies who would like to get a piece of the pie.
As opportunities for new retail development have dwindled in recent years, REITs that have traditionally specialized in building regional malls started to look into
building outlet centers...
«There is clearly room for growth in the sector — every major metro area can certainly support outlet retail,» says Michael P. Glimcher, CEO of Glimcher Realty Trust, a Columbus, Ohio - based regional mall REIT that also
owns outlet centers in Elizabeth, N.J. and Auburn, Wash..
In early April, Simon and Taubman each issued press releases about
competing outlet center projects in Chesterfield, Mo., another market where trade area demographics seem to dictate that only one outlet development can succeed.
STATEN ISLAND, N.Y. — Those involved with the Empire Outlets project celebrated New York City's
first outlet center at a ceremony at Richmond Country Bank Ballpark in St. George Thursday morning.
Of course, Borla's specialty is exhausts, and this baby sports a four -
outlet center exhaust that naturally sounds great.
But unlike large regional malls that tend to be located in major urban areas,
outlet centers don't normally inspire the same kind of opposition from local residents, according to James Schutter, senior managing director with Newmark Knight Frank Retail, a retail real estate services firm.
So in recent months they've been
announcing outlet center projects elsewhere in the world, including Canada, Brazil, Japan, China, South Korea and Malaysia.
The site seemed a good fit for Taubman's
target outlet center sales level of at least $ 400 per sq. ft.. The median household income in Manvel is $ 65,864 a year, more than $ 15,000 higher than the median household income for the state as a whole.
But when Simon bought Prime Outlets Inc. in 2010 it snapped up the last big privately -
held outlet center operator in the market.
The biggest challenge that retailers faced at the open
air outlet centers is one that Mall of America can mostly disregard — winter.
Denver Premium Outlets will feature approximately 80 shops and will be the only
outlet center serving the north side of Denver.
- ft. Harbor
Commons outlet center in Staten Island, N.Y. will be located on the waterfront, just steps away from the St. George Ferry Terminal, one of the most visited tourist attractions in New York City.
Pismo
Beach Outlet Center, Pismo Beach, Calif.: L'eggs Hanes Bali Playtex Express Factory Outlet.
Though Tanger does gain control of some enviable properties — namely
Rehobeth Outlet Center in Rehobeth, Del., and Riveria Centre Factory Stores in Foley, Ala. — not all of the Charter Oaks properties are gems.
Quibodeaux reports that Belgravia also is happy to take on
outlet centers as long as they meet underwriting criteria.