Traffic Is Returning Faster to Outlet Centers Than Malls; What Does that Mean for the Sector’s Future?
Outlet centers have not been spared the pandemic’s toll. But their open-air locations and focus on value are major advantages.
October 1, 2020 | Liz Wolf | National Real Estate Investor
When states around the country essentially locked down to help curb the spread of COVID-19, outlet centers, like regional malls, were forced to temporarily shutter, which took its toll on the sector.
“Outlets are one of the property types most impacted by COVID, with very low rent collection in second quarter, though rent collection has improved since stores have reopened,” notes Ana Lai, senior director and real estate sector lead at S&P Global Ratings.
With many stores reopening at limited capacity, COVID-19 is upending much of the retail sector as landlords, in general, are still only collecting less than 80 percent of rent.
