Tanger’s Justin Stein On Leveraging Data and Gnoshes to Grow a Retail Portfolio

Why It Matters

Tanger’s aggressive diversification and data‑centric leasing signal a broader revival of outlet‑style retail, offering investors exposure to higher‑margin, experience‑driven shopping destinations. The strategy reduces reliance on traditional apparel tenants and positions the REIT to capture growth in secondary markets where supply is scarce.

Key Takeaways

• 97% occupancy and 3.4 M sq ft leased in past 12 months
• Invested roughly $1 billion in renovations, development, and acquisitions
• Tenant mix shifted from 80% to about 70% apparel, adding home, wellness
• Added food, beverage, and entertainment to boost dwell time and sales
• Data‑driven leasing targets underserved markets like Huntsville and Little Rock

Pulse Analysis

The retail outlet sector is experiencing a notable resurgence, and Tanger is emerging as a bellwether for that trend. After a year of subdued new construction, brands are scrambling for available square footage, especially in secondary markets where Tanger already has a foothold. The REIT’s Q1 2026 results—97% occupancy and 3.4 million square feet of leases signed—underscore the pent‑up demand and validate its aggressive leasing strategy. By raising its 2026 guidance, Tanger signals confidence that the current wave of consumer traffic and retailer expansion will sustain its growth trajectory.

Beyond sheer volume, Tanger is reshaping its portfolio to align with evolving shopper preferences. The company has deliberately reduced its reliance on pure footwear and apparel, moving the mix to roughly 70% and injecting home‑lifestyle, health‑and‑wellness, and experiential tenants such as Restoration Hardware, Crate & Barrel, and Planet Fitness. Complementary food, beverage, and entertainment offerings extend dwell time, a proven lever for higher per‑visitor spend. This diversification not only mitigates risk tied to any single category but also creates a more resilient revenue stream that can weather seasonal fluctuations.

Central to Tanger’s success is a data‑driven leasing model that blends market analytics with tenant performance metrics. By pinpointing underserved markets—think Huntsville, Alabama, and Little Rock, Arkansas—the REIT can present brands with a compelling case backed by local consumer insights. This approach, coupled with a $1 billion investment in renovations, ground‑up projects, and strategic acquisitions, positions Tanger for continued expansion through 2027 and beyond. For investors, the combination of high occupancy, diversified tenant mix, and a disciplined, analytics‑first strategy offers a compelling narrative of sustainable growth in a revitalized retail landscape.