Can Outlet Centers Continue to Succeed by Luring Shoppers with Bargains and ‘Experience?’

While many CRE pros agree that outlet centers are today’s best-performing retail asset, some say the sector may be losing some of its appeal.

As regional malls continue to grapple with tenant bankruptcies and store closings, outlet centers by many accounts have been thriving.

Shopping centers offering an “experience” and value retail are faring well overall. Outlet centers boast both the “bargain hunting thrill” and deals that are often difficult to find through e-commerce channels.

“Because of the bargain hunting of outlet centers, you cannot necessarily get that same experience on your computer or smart device,” says Mark Hunter, managing director of retail asset services leading CBRE’s mall business...