DALLAS— The Woodmont Company, a national retail real estate company specializing in brokerage, development, investment and property management, hired John Geddis as senior vice president of brokerage services. Geddis will be charged with leasing at the firm's outlet shopping center portfolio including third-party owned outlet centers and planned outlet center developments. He recently shared some retail outlet trends in this Globest.com exclusive.

GlobeSt.com: How would you describe the current state of the US outlet center leasing market?

John Geddis: Overall, very positive. That said, and while remaining very opportunist, I think we're beginning to see hesitancy toward new developments from some of the luxury and apparel brands. After a flurry of development activity in recent years, many brands are evaluating the performance of new stores, analyzing the overall effects on the brand and focusing on improving current portfolios.

The industry continues to evolve with centers moving closer to the metropolitan areas, regional centers being repositioned with a hybrid mix of outlet and full price brands, and the addition of amenities including resorts, gaming, golfing, movie theaters, restaurants and other forms of entertainment in many projects.

Also back in vogue are landscaped areas, children's play areas and the return of the traditional community gathering place for events and local performances, all geared toward improving the overall shopping experience and length of stay. As an example, The Woodmont Company is currently in predevelopment leasing for Cherokee Outlets in Tulsa, a 350,000-square-foot 90 brand outlet center which includes an existing Hard Rock Café Convention Center Resort and an 18-hole golf course.

GlobeSt.com: What does the future hold for outlet center leasing activity?

Geddis: While we may witness a pullback in development, the overall future is bright. The established centers continue to perform at very aggressive sales per foot averages, many outperforming traditional regional centers. We've seen a massive amount of expansion in recent years to existing centers and occupancy levels remain at all-time highs. New national and local developers continue to enter the outlet arena while bringing new ideas, new concepts and experiences. The millennials continue to be the fastest growing group of outlet shoppers.

GlobeSt.com: What industries are most active in leasing outlet center space? Why?

Geddis: Obviously the traditional categories: women's and men's apparel, athletic footwear, children's and teen fashion, with the overall goal of a well-balanced mix and appeal. Many of the major department stores are now represented, including Saks Off Fifth, Bloomingdales and Nordstrom Rack. We see H&M and Forever 21 growing outlet portfolios while bringing the very popular fast fashion category. The outlet shopper remains very demanding and wants all the brands and services they find in a traditional mall.

GlobeSt.com: What types of geographic locations are better suited for outlet centers?

Geddis: No longer is it just the tourist locations, although many of the traditional tourist destinations centers remain top performers for many brands. Centers have moved closer to the rooftops of the metropolitan areas. International shoppers have become a huge part of the outlet business as they travel major metropolitan areas. Secondary markets have also seen a large amount of activity in recent years as developers scramble to develop and become the destination for outlet shopping. A recent example is a project by The Woodmont Company that consists of a 75 leading brand, Outlets of Wichita, a 300,000-square-foot center scheduled for fall 2018.

GlobeSt.com: How is e-commerce impacting the success of outlet center tenants?

Geddis: E-commerce is a growing presence and a positive impact on brick-and-mortar retail. The Internet is the point of contact with the brand for many consumers today, especially with the millennials. The brick and mortar store allows the brand to tell a story, showcase the products and speak with knowledgeable associates to enhance the sale.

GlobeSt.com: How would you describe the current state of the US outlet center leasing market?

GlobeSt.com: What does the future hold for outlet center leasing activity?

GlobeSt.com: What industries are most active in leasing outlet center space? Why?

GlobeSt.com: What types of geographic locations are better suited for outlet centers?

GlobeSt.com: How is e-commerce impacting the success of outlet center tenants?

Instant Insights /

Outlet Industry Continues to Evolve with Consumer Tastes

Related Stories

Recommended For You