Outlet Mall REITs are REITs that invest almost exclusively in outlet malls, as opposed to retail properties.
Properties in the portfolios of outlet mall REITs are fundamentally different from those found in retail REITs in terms of product mix, tenant strategy, location, and consumer experience.
As such, the market forces that determine the performance of outlet mall REITs are also distinct from those that shape those of retail REITs.
Assets of outlet mall REITs are usually located in suburban areas, instead of city and town centres, and do not usually require the same amount of upkeep and maintenance as retail REITs.
Footfall captured by outlet mall REITs are also primarily from the middle class to bargain consumers segment, as opposed to mass market, and luxury segments usually targeted by retail REITs.
Notable outlet mall REITs include Tanger Factory Outlet Centers, and Sasseur REIT.