This post originally appeared on the Developers & Chains website and is republished with permission.
Pop-Up stores are the newest trend in leasing retail space for this millennium. If you haven’t had an opportunity to visit a pop-up retail concept at your local shopping destination, they are essentially a way for businesses to temporarily lease a space (from one day to a couple of weeks) to test or promote a new concept or idea to the market, launch a new product, or just generally promote their business in location that would not necessarily support a permanent location. They “pop-up” for a day or two and then disappear.
Pop-Up stores should not be confused with temporary tenants. Temporary tenants usually rent a space for an extended period of time (months) with options to extend their “temp” lease. Concepts such as Halloween stores, or H&R Block locations that are set up to handle the tax season would be good example of temporary tenants.
From a landlord’s perspective, Pop-Up stores can be a great draw to a property as they create “excitement”. Pop-Ups generally produce a lot of marketing hype around the store, as their goal is to draw in as many customers as they can in a short period of time. If properly curated, a pop-up can draw new customers to your centre, creating extra traffic to the permanent tenants. It’s a win-win situation for the landlord, tenants and customers alike.
Of course, a pop-up store’s commitment to pay rent is usually less desired than a long-term tenant, but the upside is there are no modifications needed or fixturing costs for the landlord as the pop-up will take the space in “as-is” condition. And hey, if the pop-up is very successful, you never know, but you may have found the next long-term tenant for your space.
Sandy G. Shindleman, CCIM, SIOR, FRICS
President & CEO
About Developers & Chains
Developers & Chains is a subscription-only publication that concentrates on the growth and expansion aspects of the retail and restaurant industry across Canada, from British Columbia to Newfoundland. For more information please visit http://devandchains.com/
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