Learn who we are and how we serve our community
Meet our leaders, trustees and team
Developing the next generation of talent
Covering the latest news and trends in the marketplaces industry
Check out wide-ranging resources that educate and inspire
Learn about the governmental initiatives we support
Connect with other professionals at a local, regional or national event
Find webinars from industry experts on the latest topics and trends
Grow your skills online, in a class or at an event with expert guidance
Access our Member Directory and connect with colleagues
Get recommended matches for new business partners
Find tools to support your education and professional development
Learn about how to join ICSC and the benefits of membership
Stay connected with ICSC and continue to receive membership benefits
Fewer outlet centers may be opening these days, but what development there is, along with the redevelopment and leasing of existing properties, is profoundly changing this sector of the retail real estate industry. Nontraditional outlet retail is taking center stage, alongside tried-and-true apparel and athleisure brands, and centers also are housing entertainment venues, locally owned shops, breweries and improved food-and-beverage options.
Multiple uses at outlet centers under development
2020 will be a quiet one for outlet center openings in the U.S. but a busy one for construction and leasing. Los Angeles Premium Outlets, developed and leased jointly by Simon and Macerich, broke ground in 2019 in Carson, Calif., and is scheduled to open in 2021. The first phase of that high-profile project will comprise 400,000 square feet of retail. An additional 160,000 square feet is planned for the second phase.
Tanger Outlets announced plans in 2019 to open a center in the Nashville area. CEO Steven Tanger said construction will start in 2020. “I want to point out that this is a large development,” Tanger said. “We will be the hub of this development, which is currently zoned for 3 million square feet of mixed-use. It will include offices, apartments and the center as a very important hub — and we’re the first one to go in.”
Meanwhile, Simon has purchased 51 acres in Jenks, Okla., for Tulsa Premium Outlets, which will open in the spring of 2021. The site is nine miles from Downtown Tulsa and 20 minutes from Tulsa International Airport. “At the heart of Simon’s strategy is connecting with communities where we can raise the bar for a new shopping experience, and we are proud to confirm we’ve found that opportunity in the Tulsa market,” said Simon Premium Outlets CEO Stephen Yalof. “Tulsa Premium Outlets will be a regional destination that offers strong value, fantastic fashion and an unparalleled experience for our guests.”
Columbia, S.C., is the site of an outlet-oriented project from EB Development called The Outlets at Southern Commons, scheduled to open in 2021. A mixed-use center with an emphasis on outlet-type stores, its plan calls for housing, hotels, restaurants and a broad range of retailers.
Existing centers diversifying into nontraditional tenants
While new developments are rising with multi-use mixes in their plans, existing centers consistently add nontraditional outlet tenants to better suit current consumer trends and spur repeat visits. Numerous centers are adding what people previously would have considered “nontraditional outlet retailers.” Centers have added entertainment tenants while improving their food-and-beverage offerings, including locally owned restaurants, breweries, coffee shops and bakeries. Centers also are striving to become community hubs by offering events to appeal to families.
Outlet shopping is still very much about the brands and the bargains, “but today’s consumer also wants more,” said Horizon Group Properties CEO Gary Skoien. “They are more discerning and seek an entertainment experience, in addition to brand names and bargains to draw them away from online shopping. Having major brand names offering up to 70 percent off is still meaningful, but there has to be something that goes along with that, whether a dining experience, a gaming experience, an amenity, superior customer service or a place to relax.”
Horizon’s centers are creating experiences, as well, to spur visits. These include music, sports broadcasts, movies, escape rooms and activities like bowling and table tennis. The Outlet Shoppes at Atlanta offers “sip, shop and stroll,” allowing customers to purchase adult beverages at one of the center’s restaurants and take it with them as they shop the center.
The centers that opened in 2019
The centers that opened in 2019 reflected the changing face of outlet shopping. After numerous delays, Empire Outlets opened in September in Staten Island, N.Y. New York City’s first outlet center, it’s being positioned as a community destination with live performances, Broadway-type events and a virtual-reality attraction called Virtual Rush: New York. Other nonretail attractions will[MA1] include a 40,000-square-foot food-and-beverage deck with Manhattan views and Tee Suite, an interactive golf experience and lounge.
Fashion District, a joint project of Macerich and PREIT that opened recently, spans three city blocks in Philadelphia and mixes traditional outlet brands like Express Factory, Guess Factory, Levi’s Outlet Store and Nike Factory with dining concepts, entertainment venues, art installations and local shops. “Food-and-beverage and entertainment is really important for the types of projects that we’re developing,” said Macerich senior vice president for outlets Jamie Bourbeau. “We tend to be much closer to major metropolitan markets. We’ve found that, with our sites, the longer you can keep someone there with decent food choices [or] entertainment for the kids or the husband, the better off you are and the more they’re going to shop. It’s very important to make sure that you have a full assortment of stores, restaurants and entertainment.”
By Duke Ratliff
Managing Editor