Factory Outlet Centers: Public vs. Private Pricing

August 1996, Vol 21, No 2

Abstract: This article examines the differences in investor attitudes toward public versus private pricing in the rapidly growing factory outlet sector. While most institutional real estate financiers remained on the sidelines in the early 1990s, the public rushed in and purchased stock in outlet center companies. What is the relationship between capitalization rates and dividends, and what is the stock market currently telling us about the future performance of real estate.