Creating new folders in Outlook for Mac

The New version of Outlook for Mac has the Create New Folder option greyed out. I found the only way around this was on an IMAP account was to switch back to the Legacy interface where I was able to create the folder structure and sync. I then shut down Outlook and reopened Outlook. Once reopened, I selected New Outlook form the Outlook menu. Now my new folders are there. Seems to be working until they fix New Outlook.