(Crystal Proenza is associate editor of Real Estate Florida.)
ORLANDO, FL-While many retailers are getting pushed out of the market because of slow sales during the economic downturn, two outlet centers in Orlando are celebrating expansions and welcoming new retailers. Prime Outlets International Orlando has recently completed a $300-million renovation and expansion, while Orlando Premium Outlets is adding 114,000 sf.
"Outlets are the bright spot on the retail horizon," says Karen E. Fluharty, senior vice president of marketing for Prime Retail. "They have a tendency to perform better than full price [during a downturn]. Most of that is simply because customers still aspire after brand name goods and are looking to make smarter choices."
Although Prime Retail does not release sales figures until the end of each year, the company is pleased with traffic and sales at this point, particularly in Orlando, says Fluharty. The Chelsea Property Group, a division of Simon Property Group, is also pleased with its Orlando sales, says Michele Rothstein, senior VP of marketing.
"We do not break out sales performances by center, but it has been previously reported that Orlando Premium Outlets has sales annually that exceed $1,000 per sf, which would make it the most productive outlet center in the US," she says. As of June 30, Chelsea Property overall had a sales performance of $519 per sf, up 5.5% from a year ago, according to the company's second-quarter earnings report.
In April, GlobeSt.com reported that Simon would be expanding a number of outlet centers, including its Orlando location. The 114,000-sf expansion on the 100% leased 436,000-sf center will add 40 stores and is expected to be complete by Nov. 6. The center also recently welcomed Etro and DKNY outlets to its lineup.
In May, GlobeSt.com reported that Prime Outlets International in Orlando had completed renovations, bringing the center to a total of 778,000 sf. The space is already 100% committed, says Fluharty, although not all stores are open yet. Six more brand names are expected to announce a presence at the center in the next few weeks.
Last week the center announced its newest tenant, the world's first Baccarat outlet store. Paris-based Baccarat is known globally for its luxury crystal products such as lighting, home décor, barware, jewelry and fashion accessories. Founded in 1764, the company sells its wares in the US at department stores as well as 12 full-price boutiques. The company does not have a boutique presence in Florida, but does have full-price distribution through department stores. According to Baccarat, at this time the company is not planning any other outlet stores. Baccarat will share the 1,500-sf space with Lalique, a French-based company famous for creating crystal works of art.
Nicholas Ledvora, senior associate with Marcus & Millichap, says the success of the outlets is partly due to Orlando being insulated from economic factors. "The area is getting a ton of tourist traffic right now, with the value of the dollar playing into it," he says, which drives international tourists to spend their valuable currency at the outlets.
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