Simon Eyes Nashville Mixed-Use Center
When complete, the Premium Outlets property will comprise retail and hospitality spaces.
Simon intends to develop Nashville Premium Outlets, a 325,000-square-foot luxury shopping and lifestyle destination, starting next year. To that end, the REIT agreed to purchase a large site in Thompson’s Station, Tenn. Construction is expected to begin in 2026.
The location is at the intersection of interstates 65 and 840. The town is about 25 miles south of Nashville.
Simon will develop the mixed-use center in collaboration with Nashville-based Adventurous Journeys Capital Partners. That company works in the hospitality, mixed-use and residential sectors; its brands include Graduate Hotels, Marine & Lawn Hotels & Resorts and Field & Stream Lodge Co.
Preliminary project plans call for about 75 retailers, as well as restaurants and a hotel. Residential options and big-box retailers could be added at a later time.
A Simon spokesperson told Commercial Property Executive that the project is in such an early stage that a site plan and renderings are not yet available.
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Simon already has some noteworthy retail assets in the Nashville area. These include the super-regional Opry Mills, the metro’s largest shopping destination, featuring more than 200 stores and 20 restaurants. Another is The Mall at Green Hills, which Simon owns through a joint venture with Taubman Realty Group.
Last September, Simon Property Group LP amended, restated and extended its $3.5 billion credit facility. The move was intended to give Simon more financial flexibility as it expands experiential options at many of its malls.
Good neighborhood
Demand for retail space in Nashville rose steadily in 2024, according to a fourth-quarter report from Matthews Real Estate Investment Services. Available space was tight, however, despite the 1.3 million square feet delivered throughout the year. About 760,000 square feet was under construction as of December, a pipeline still below the metro area’s average for the past 10 years.
Based on Nashville’s strong population growth, Matthews predicted that retail vacancy will likely remain below 3.5 percent through the next five years, below the national average.
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