Seeing the success of outlets, other types of developers—especially those who had assembled land for residential properties but could not get the financing for those projects—began partnering with outlet developers for new projects. Developers also began redeveloping existing properties, looking to convert projects that had fallen on hard times into outlet properties that could make them money.

GlobeSt.com: Is there a particular region of the country in which outlet centers are more likely to be found?

Rothschild: Although outlet shopping centers are multiplying quickly, they are not the right use for every piece of vacant land. The most active development is occurring in heavily trafficked tourist areas—think beaches, resorts and entertainment venues—and just outside large metro areas that have well-laid-out transportation—highway visibility and great access.

GlobeSt.com: When it comes to investment sales, what kinds of investors are most interested in outlet malls?

Kilberg: Outlets are now becoming a target for investment and equity funds that are looking to diversify their portfolios. For many investors, outlets have become attractive because almost all the outlet retailers are national retailers with credit at their disposal. They have a proven track record so it's less of a risk overall, though, like any investment in retail developments, strong management and leasing are key to building and maintaining value.