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Simon Property (SPG) Inaugurates Premium Outlet in Denver

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Simon Property Group, Inc. (SPG - Free Report) recently unveiled Denver Premium Outlets in the greater Denver area. The 330,000-square-foot outlet, situated at I-25 and 136th Avenue in Thornton, CO, is expected to provide a seamless shopping experience to residents of the region.

The outlet includes stores of many premium brands of renowned companies, like Michael Kors Holding Ltd (KORS - Free Report) , Nike (NKE - Free Report) , Under Armour, Inc. (UAA - Free Report) , Coach, Calvin Klein, Tommy Hilfiger. Further,it provides a host of other entertainment facilities, such as a play park, an outdoor fireplace, a watering station, free Wi-Fi, and a lounge that offers phone charging and TV facility. Simon Property has incorporated the best concepts from its existing properties in developing this shopping center.

Owing to explosive growth in the e-retail industry, retail real estate investment trusts (REIT) have been experiencing a downtrend in mall traffic. To counter this, retail REITs are focusing on development and portfolio overhaul measures. Such efforts will also help the retail real estate companies to offer personalized experiences to people, which online retailing often lacks.

Simon Property, which is the leading retail REIT in the United States, has been actively restructuring its portfolio through premium acquisitions and transformative redevelopments.  Lately, it entered into a partnership with Macerich for developing premium outlets in Los Angeles. This was followed by the opening of a hotel at Southdale Center. Such efforts will likely support the company’s profitability even amid retail apocalypse. Also, the company’s focus on mixed-use development option and efforts to support omni-channel retailing will likely augment growth, moving ahead.

To conclude, Simon Property’s growth prospects look promising backed by its strategic initiatives. The company's share price rose 9% over the past year, as against 10.9% decline recorded by the industry during the same time frame.


 

At present, Simon Property carries a Zacks Rank #3 (Hold).  You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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