Simon to build $2.5B in new outlet malls
Retailers looking to grow their physical store presence have an ally in Simon Property Group, as the retail real estate leader is poised to expand its portfolio of Premium Outlets properties by adding 6.4 million square feet and a total investment of $2.5 billion.
"Our Premium Outlets portfolio is firing on all cylinders and is the unquestioned standard bearer in the industry," said David Simon, chairman and CEO of Simon. "The pace of our new developments both here and abroad and the significant expansion of our landmark properties are unprecedented and a testament to the strength and quality of both our brand and organization."
Simon's 84 Premium Outlet shopping centers are popular with many consumers. According to Simon, domestic sales within the portfolio have productivity levels that are significantly higher than the rest of the industry, including the only six existing outlet centers to be performing at greater than $1,000 per square foot.
Simon is expected to open four new outlet centers in 2015:
Vancouver Designer Outlet, a 242,000 square foot center, will open in May
Gloucester Premium Outlets, serving the greater Philadelphia area, is a 375,000 square foot center that will be ready for shoppers in August
Tucson Premium Outlets (366,000 square feet) and Tampa Premium Outlets (441,000 square feet) will open in October
Simon is also expected to begin construction on five new outlet centers in 2015:
Columbus, Ohio (355,000 square feet)
Norfolk, Va. (351,000 square feet)
Clarksburg, Md. (392,000 square feet)
Tulsa, Okla. (318,000 square feet)
Denver (350,000 square feet)
The company said it will continue to reinvest in its existing outlet centers to meet strong demand from retailers and shoppers.