U.S. outlet REIT Tanger sees consumer demand strengthening in 2026, with occupancy at 97% and Gen Z driving foot traffic.
Tanger CEO Stephen Yalof said consumer traffic and sales at the company’s outlet centers have increased since the start of 2026, supported by an 11% rise in first-quarter Core FFO. Occupancy across its 38-center portfolio reached 97%, reflecting sustained demand despite broader economic concerns.
The comments come as U.S. retail sales hit a 12-month high in May, even as consumer sentiment plunged to 49.8, a level typically associated with recession. Yalof highlighted Gen Z as a key driver, treating outlet shopping as a social activity and favoring brands like Coach and Ralph Lauren.
Tanger has repositioned its centers as lifestyle destinations, blending shopping with entertainment and dining to attract younger shoppers. The company focuses on secondary and Southeastern markets rather than major coastal cities.