1. THE STATE OF U.S. OUTLET CENTER REAL ESTATE

2. where are We today 241 U.S. Outlet Centers (give or take)
Roughly 80 different owners
Large owners are Simon, Tanger, Horizon, Craig Realty, The Was Group, EWB Development, AWE Talisman, CBL, Macerich, Taubman, Glimcher
30 New Centers over past 4 Years (15% growth)
10 New Centers in 2014; 66 Centers in Development
Dynamic and Changing

3. How Did We Get Here Pre-Recession 2000’s Simon bought Chelsea in 2004
Still, Lifestyle Centers were really the only thing that mattered in the mall development world
1 to 3 new outlet centers were being built a year
Primarily focused on tourist markets or on periphery of major metros
Centers were built in places like Atlantic City, Las Vegas, Charleston, Seattle, El Paso, McAllen, Wisconsin Dells, Chicago, Philadelphia etc.

4. How Did We Get Here Heart of Recession (2008-2009)
Outlet Centers Hold Up (what Lifestyle Center?)
2008 Simon Mall Portfolio (-4.3%);
2008 Premium Outlet Portfolio +1.8%
2009 Simon Mall Portfolio (-1.8%)
2009 Premium Outlet Portfolio +5.8%
Post-Recession (2010+)
Every Developer: “We Better Get In This Outlet Game!”

5. How Did We Get Here
2006 to 2009: Proposed Lifestyle Centers (2009 Began Tracking Outlet Centers)
RECESSION

6. How Did We Get Here
2010 to 2014: Proposed Lifestyle Centers and Outlet Centers

7. How Did We Get Here
28 New Outlet Centers in Past 3 Years

8. How Did We Get Here Why Build? Just Put Outlet In The Name
Great Lakes Crossing
Block at Orange
The Legends Village West
Legends at Sparks Marina
Jersey Gardens
SuperMall of the Great NW
Louisiana Boardwalk
The Pike at Long Beach
St. Louis Mills
Great Lakes Crossing Outlets
The Outlets at Orange
Legends Outlets Kansas City
Outlets at Sparks
Outlet Collection Jersey Gardens
Outlet Collection Seattle
Outlets at Louisiana Boardwalk
Outlets at The Pike
St Louis Outlet Mall

9. What is driving outlet malls to certain Markets?
Which Markets Don’t Have an Outlet Yet?
Which Markets Are Still Operating on the Old Model?
Which Markets Are Big Enough to Support Multiple Outlet Centers?
What’s Left?

10. What is driving outlet mall locations
Which Markets Don’t Have an Outlet Yet?
Recent Examples:
St. Louis
Oklahoma City
Louisville
Birmingham
Jackson, MS
Syracuse, NY
Coming Soon? Are We Getting Too Small?
Examples:
Tucson
Savannah
Asheville
Tulsa
Corpus Christi
Springfield, IL
Little Rock
Des Moines
Coeur d’Alene
Anchorage
Memphis
Augusta, GA
Grand Rapids
Richmond
Tyler, TX

11. What is driving outlet mall locations
Which Markets have an Outlet but not close to town (Old Model)?
Recent Examples:
Houston
Twin Cities
Charlotte
Atlanta
Cincinnati
Rosemont
Pittsburgh
National Harbor (DC)
Philadelphia
Coming Soon? What is too far away?
Examples:
Hartford
New York
Columbus
San Francisco
Indianapolis
Houston
Detroit
Miami
Sacramento

12. What is driving outlet mall locations
Which Markets Can Support Multiple Outlet Centers?
Recent Examples:
Houston (2nd center)
DC (2nd center)
Dallas (2nd center)
Phoenix (2nd & 3rd center)
Boston (2nd & 3rd center)
Atlanta (2nd center)
Coming Soon? How Close Can They Locate?
Examples:
Houston (3rd center)
Tampa (2nd center)
DC (3rd center)
Seattle (2nd center)
Dallas (3rd center)
San Francisco, NY, LA, etc.
Denver (2nd center)

13. Where do we go from here
6 to 10 Outlet Centers built in the U.S. in each of next 3 to 4 Years
Smaller Markets and Closer Spacing
Sensitivity is dead – Outlet centers can go anywhere
Driven by retailer demand
The principles of good real estate still apply (can’t just go anywhere)

14. Two Game Changing Centers
Fashion Outlets of Chicago at Rosemont
Regional Mall Location
In-board of existing outlet centers
10 miles in-board of Woodfield Mall; 8 miles from Old Orchard Mall
Indoor Outlet Center
Interior design/seating/finishes similar to Regional Mall standards

15. Two Game Changing Centers
The Outlets at Assembly Row
Mixed-Use Project (includes office and apartments above retail).
2 miles from downtown Boston - located on the T Line
Includes entertainment – AMC Theater, Lego Discovery Center
Includes Restaurants – Earl’s Kitchen, Legal Seafood, etc.
Outlet Lifestyle Center

16. Two Potential game changers
On-Line Outlet Product
Growing number of retailers selling their outlet product on-line through their own websites
In addition to selling through Amazon and flash-sale sites
TJ Maxx on-line is seeing strong sales growth

17. Two Potential game changers
Outlet Retailers are Locating Outside of Outlet Centers
Street Retail
Value Oriented Strip- Centers
155 Nordstrom Rack Locations
1,100 TJ Maxx and 900 Marshalls Locations
1,100 Ross Stores
B Malls
NIKE Factory Store in Strip Center in Louisville, KY
J Crew Factory Store at Plymouth Meeting Mall

18. Two Potential game changers
Outlet Retailers with Street and Strip Center sites
GAP Factory Store Locations in NYC (No Traditional Outlet Malls)

19. Two Potential game changers
Outlet Retailers in Value Centers (Typical New Hybrid-Center)