Pop-Up Shops: A Short-Term Solution to Vacancies

Popup Temporary Lease Space
Popup Lease Space. CanStockPhoto

Landlords and their leasing agents must get creative when vacant retail space lingers. Not only does this empty space strain the property owner, but it creates an eyesore in the community. An easy way to remedy both problems is to lease the space out on a short-term basis.

There are plenty of businesses that lend themselves to temporary occupation. Holiday shops, mobile art exhibits, start-up designers and well-known retailers with excessive merchandise can operate as pop-up shops, or retail space that “pops up” one day and disappears over time.

Some sharp marketers who have new products or a completely new business will lease short term space specifically to test their market, products or business concept.  If any of these are susceptible to localized influences, they may lease space in multiple markets to make sure they cover their demographic influencers.

The popup space market has become so popular with both landlords and tenants that there are multiple sites on the Web catering to landlords listing properties and tenants searching for the right temporary opportunity.  One such site, TheStorefront.com, even lets the tenant book the property online.

Pop-up shop leases usually last for six weeks to 12 months, with many non-seasonal retailers willing to sign month-to-month leases that could result in long-term tenancy. Rents for pop-up shops tend to run lower than those secured by traditional leases, sometimes by 50 percent.

Of course, this concept works better when there is little or no space modification necessary.

 Generally, just some display shelving or fixtures that are easily erected and torn down are the best.  The tenant wants an easy move-in/move-out, and the landlord wants little or no refit between tenants.

While this may be unattractive to landlords, the prospect of some rent is better than no rent.

The aesthetic value that a bustling pop-up shop can add to a center should not be overlooked as well. It can only help consumer confidence. The short length of these leases can also be a huge benefit to landlords. They provide immediate mortgage assistance, while leaving prospects open for long-term leasers once the market becomes more favorable.

Summer is the ideal season to focus on leasing vacancies, as costume shops, Christmas stores, and gourmet food and gift basket providers are in need of space for the upcoming holiday season. For more information on potential pop-up shop tenants or space, visit OpenPop-UpShops.com or PopUpInsider.com.

 

Edited by James Kimmons