New industry-wide features at outlet centers have contributed to increased sales, and institutional investors have noticed, according to CBRE’s Phil Voorhees and Richard Frolik.
“I’ve seen multiple private equity groups and pension funds underwriting outlet offerings,” Frolik, executive vice president at CBRE, told GoldSt.com. “Institutional capital is warming up to the sector. This momentum is creating massive value and will only continue to make the asset class stronger.”
Frolik added that new outlet sector standards such as racetrack designs and locations closer to city centers has led to higher consumer demand. New tailored marketing strategies have been particularly effective in attracting millennials, he said.
“I’ve spent over 20 years in the outlet industry and have never seen opportunities as positive as they are today,” Frolik said. “I believe we are still in the early innings of outlets as an investment class and am excited to see what the future has in store.”