Retail Real Estate Between Portland and Salem
The outlet sits along Interstate 5, where the drive from Portland to Salem flattens out into farmland. From the road, you can see the tile roofs and beige facades just past Exit 271.
Trucks move past in the distance, but the signs—Coach, Nike, Adidas, Eddie Bauer, Banana Republic—draw traffic off the freeway.
Woodburn Company Stores opened here in August 1999 with 243,000 square feet of retail space. Back then, it was a $20 million bet on tax-free shopping and out-of-town visitors.
The developer, Craig Realty Group, picked the location carefully: far enough from Portland to feel like a day trip but close enough to attract tourists headed to wine country or the Woodburn tulip fields.
At first, it was just a cluster of storefronts with heavy foot traffic on weekends. But within a few years, the demand pushed the site to grow.
Each expansion brought new tenants and more parking lots—more sales per square foot, more leases filled.
The name didn’t change until 2013. That summer, Simon Property Group bought the site and rebranded it as Woodburn Premium Outlets.
They didn’t change the location or the layout. What they brought were their portfolio management strategies, which are used across outlet malls from California to Texas.
The mall now covers 388,000 square feet and has more than 110 stores. It has become one of Oregon’s top tourist stops, especially for visitors drawn in by the state’s lack of sales tax.
Some guides even list it among the top things to do in Woodburn, Oregon, alongside local festivals and farm tours.
Phased Growth and Branded Expansion
By 2003, just four years after opening, Woodburn Company Stores added 66,500 square feet of retail space.
That brought the total to over 309,000 square feet, but it wasn’t the final buildout. With foot traffic climbing, developers saw room for more.
In November 2005, the mall expanded again, this time adding 23,700 square feet at a cost of $1.6 million.
The new section included Nike as a headline tenant. Its arrival marked a shift. Before then, the center had mostly been filled with mid-tier brands and seasonal outlets.
After Nike opened, traffic patterns changed. Shoppers came earlier, stayed longer, and lined up outside before doors opened on weekends.
The outlet’s growth mirrored retail demand in the early 2000s. This was before online shopping started biting into brick-and-mortar sales.
Expansions made sense on paper. The numbers backed them up: higher sales per square foot, longer lease agreements, and more corporate interest.
S.D. Deacon stayed on as general contractor through each build. They poured concrete for walkways, installed window fronts, and added storage behind the storefronts.
February 2009 brought another 27,400 square feet of retail space. That project cost $5.1 million and opened with little fanfare—no ribbon-cutting, no press.
But it shifted the layout again. Walkways stretched farther. Restrooms and benches came next. By then, parking was a known issue, especially during peak months.
The final major expansion began in February 2012 and opened seven months later. That phase added 38,500 square feet, including 16 new stores and expanded restroom facilities.
The price tag was $10 million. When that build wrapped, the center reached its current footprint—388,000 square feet of leasable retail space.
Each build carried a pattern: add space, fill it, and raise occupancy. By late 2012, every storefront was leased.
Transit Gambles and Missed Connections
In 2007, Woodburn Company Stores tested a new idea. Between Memorial Day and Labor Day, a shuttle bus—called the Woodburn Outlet Express—ran from Portland and Lake Oswego to the outlet and back.
It picked up passengers from the Portland Hilton, the Union Bank of California, and the Hilton Garden Inn off Kruse Way.
The fare was $20 round-trip. Riders didn’t need a reservation—just a seat and a few shopping bags. But the plan didn’t last. By September, the shuttle was parked for good. The company cited low demand.
The idea made sense in theory. Portland tourists often rent cars, and the outlet’s location—25 miles south—requires a vehicle.
Without a car, you’d need to patch together a trip using Amtrak, a local bus, and maybe a cab.
For many, it wasn’t worth the trouble.
The summer shuttle tested that theory. Early ridership was low. Retailers hoped the service would boost weekday traffic, especially among international tourists staying downtown.
But hotel concierges weren’t pushing it, and most Portlanders had cars. By the end of the trial, the route was canceled without plans for a return.
The failure showed the limits of destination retail without robust transit.
It also reflected the center’s reliance on cars and tour buses—visitors who arrive in clusters, shop fast, and leave before dinner.
Loss Prevention and the Business of Volume
In 2006, store managers began to notice inventory shrinking faster than usual. It wasn’t one brand or one weekend—it was across several retailers spaced out over months.
Later that year, investigators tied the pattern to an organized shoplifting ring.
The group had targeted multiple storefronts at Woodburn Company Stores. Losses were tallied, reports were filed, and security footage was reviewed.
That kind of attention was rare at the time. Most retail crime in the area was petty theft.
This was different—planned, repeated, and fast. The open-air layout made it easy for groups to slip in and out quickly.
Wide walkways and rear exits offered quick access to waiting cars.
Despite the thefts, traffic never slowed. In 2011, the outlet center logged 4.4 million visitors.
That number grew in 2012, hitting a record 4.5 million. By the end of that year, every storefront was filled.
Leasing had peaked. Even with online retail growing nationally, shoppers still showed up here—for the markdowns, the tax advantage, and the familiar brands.
Coach, Levi’s, Calvin Klein, Columbia, and Gap kept pulling in consistent volume.
Smaller outlets followed their lead, timing sales around holiday weekends and back-to-school spikes.
Managers adjusted staff numbers on the fly, depending on crowd flow. Parking lots are filled early during Thanksgiving weekend, with overflow heading toward the shoulder of the highway.
That year, December sales brought the outlet to full capacity. Units that had been slow to lease—usually in the far corners—were now occupied.
Maintenance staff worked double shifts. Seasonal help stood outside doorways with coupon flyers and headsets.
Portfolio Play and Retail Identity
Simon Property Group finalized its acquisition in June 2013. By then, the outlet was already Oregon’s busiest shopping destination by foot traffic.
The name changed almost immediately. “Woodburn Company Stores” went down, and “Woodburn Premium Outlets” went up.
Simon didn’t rebuild anything—they didn’t have to. The layout stayed intact—the same angled storefronts, pastel color scheme, and open-air walkways.
What changed was branding. The center joined Simon’s Premium Outlets portfolio, which includes locations in Las Vegas, San Marcos, and Orlando.
That branding gave Woodburn more visibility in travel guides and retail marketing.
International tourists had already visited for tax-free shopping. Now, they found familiar signage, too—part of the same network they’d seen at other U.S. malls.
Stores adjusted signage to match Simon’s portfolio standards. Uniform maps appeared. Mall events were rolled out under national campaigns like “Back to School” and “Friends and Family Weekend.”
By 2025, the anchor store mix includes Banana Republic Factory Store, Gap Factory, Polo Ralph Lauren Factory Store, Columbia Factory Store, adidas Outlet Store, Levi’s® Outlet Store, Eddie Bauer Outlet, and NIKE Factory Store.
Stores change, but traffic stays consistent—especially in spring and late summer.
Mall staff track patterns by season, adjusting hours and operations to fit.
The outlet still operates without sales tax, which sets it apart from other Western U.S. outlets.
It’s a key stop for tour buses and group travel—especially visitors from California, where retail tax cuts deeper into price tags.
Many stop for a few hours between Portland and Eugene, buying luggage to pack what they didn’t plan to bring back.
New Openings and Local Shifts
On a cloudy Friday in February 2024, shoppers walked past construction walls near the Levi’s store.
A new sign had gone up—Rocket Fizz Soda Pop & Candy Shop. Inside, crates of bottled sodas waited to be shelved. Candy lined the walls in bins—color-coded, high-gloss, sugar-heavy.
Pandora opened earlier that month, wedged between Michael Kors and Under Armour.
The storefront was small, with clean displays and soft lighting. Clerks arranged charm trays behind glass. It wasn’t a grand opening—no fanfare, no ribbon—but the foot traffic never stopped.
By spring, Lululemon had taken over the former Ann Taylor space near Zales. The windows remained covered while crews worked inside.
Some days, music leaked through the gaps. “Opening soon” decals sat on glass panels, already fingerprinted by curious passersby.
Made In Oregon opened a new location later in 2024. Their posts showed shelves stocked with Pendleton blankets, local wines, and Marionberry jams.
The store pushed Oregon branding hard—everything tagged with origin, region, and story.
It was a pivot from national chains, but it fit. Visitors liked taking something “from here” back home.
In September, Bobadochi opened near the food court. The draw: mochi donuts and boba tea. Kids lined up before noon.
Inside, pink boxes slid down the counter, filled with rings of glazed dough. The drinks came in layers—milk, syrup, and tapioca pearls—sealed and shaken.
These weren’t massive shifts, but they signaled movement. The mall stayed full, but the mix changed. Brands rotated, and new stores opened quietly.
A few leaned local. A few leaned trendy. Woodburn Premium Outlets kept pulling traffic—and the tenant list kept moving with it.