Simon Property Group sets $305 million target for Orange Outlets refresh

Simon Property Group is executing a multimillion-dollar aesthetic overhaul at The Outlets at Orange. This project marks the third major redevelopment the Indianapolis-based firm has undertaken in Orange County since 2023. Unlike the structural expansions at Brea Mall and The Shops at Mission Viejo, this initiative focuses strictly on upgrading the visual and physical environment of the open-air center rather than increasing its square footage.

The renovation responds to a recent dip in sales performance. Taxable sales at the center fell to $305 million in the 12 months ending June 30. This figure represents a decrease from $312 million recorded in the same period one year earlier, according to data compiled by the Business Journal. The center, which opened in 1995, currently maintains a 98% occupancy rate and houses more than 120 stores.

To align the physical space with its retail lineup, Simon is adding two major brands to the mix. A Coach outlet featuring an attached coffee shop and patio seating will open, alongside a new Michael Kors store. These additions complement recent arrivals such as Barnes & Noble, Vans, and Skechers. Jocelyn Gubler, the company's vice president of development, stated that the physical environment needs to match the high caliber of these retailers to attract further investment.

Specific physical improvements include repaving concrete walkways with more durable materials and installing new shade structures and seating. The project will also update lighting and repaint store exteriors. A water fountain located in front of the AMC Theatres anchor will be replaced by a seating area designed for year-round use. Simon is currently in the final stages of obtaining city permits, with construction fencing expected to appear by the end of 2026.

The timing of this project reflects a wider corporate strategy. President and Chief Executive Eli Simon noted on the August earnings call that projects exceeding $600 million were scheduled to begin construction in the second half of the year. The company reported 96% occupancy across its portfolio at the end of the second quarter, with trailing 12-month retailer sales of $838 per square foot. Approximately half of the $1.07 billion net cost for current development projects is allocated to mixed-use properties.

Local officials view the investment as a key driver for the area. Mayor Dan Slater described the renovation as a major investment that will enhance the entertainment and shopping value of the location. Gubler added that the upgrades aim to attract breakout brands from Southern California and international visitors, ensuring the center remains a clear destination for shoppers since its 2012 rebrand from The Block.

The company aims to complete the renovation before the end of 2027. The project follows a $300 million overhaul in Brea that included a Life Time fitness center and luxury apartments. It also aligns with developments at The Shops at Mission Viejo, where a new outdoor village and Arhaus store are under construction. Simon's pipeline includes over $4 billion in projects intended to support long-term growth across its nationwide portfolio.