An outlet center is a retail property built around manufacturer-owned or manufacturer-affiliated stores that sell branded merchandise at a discount, often through past-season inventory, factory seconds, or product lines made specifically for outlet distribution. These centers are typically located outside dense urban cores, often near highway interchanges or tourist corridors, where lower land costs support large footprints and where centers can draw shoppers willing to travel further for value pricing. Outlet centers can be enclosed but are more commonly configured as open-air, village-style developments with individual storefronts arranged along walkways. Tenant mix leans heavily toward apparel, footwear, and accessory brands, and many outlet leases include percentage rent structures tied to store sales given the promotional nature of the format. Because outlet centers depend on drawing shoppers from a wider geographic radius than a typical neighborhood center, trade area analysis and destination appeal, including nearby tourism or highway traffic counts, play an outsized role in evaluating a given property's long-term performance.
Further reading: A Misunderstood Corner of Commercial Real Estate (and Why We're Buying Into It)
%20(1).jpg)
ACCESS
