How Landlords Can Benefit From Pop-Up Stores

Pop-up shops were popular in the past. However, commercial property owners didn't like the idea of having to prepare a space for a tenant that wouldn't stay there for long.

Slowly, landlords are becoming more open to pop-ups. They realize that even a temporary tenant is better than a vacant space without any rental income.

This is particularly appealing in today's retail landscape, where even established brands like Sears have suddenly found themselves in difficult times and started closing stores without warning. As a result, landlords are left with many vacant properties.

Smart property owners recognize that space can lead to lost income. Therefore, they need to be open-minded about finding ways to fill the space, even temporarily, to bring in some revenue.

Basics

Pop-up shops, also known as "short term placements," are temporary retail businesses that open for a short period. A retailer can show its products to the public and generate sales without investing in long-term space. Pop-up stores are often marketed as an exclusive, limited-time opportunity by retailers.

Pop-ups can be set up by retailers regularly. They are tied to seasonal activities, such as Halloween costume shops that only open for one month or tax preparation chains that have locations that close after April 15.

The pop-up trend is very popular among all business entities, from start-ups to well-established brands looking to test new products or store concepts.

Things To Consider Before Renting To A Pop-Up

Here are some things to consider when discussing a pop-up tenant.

• Are there any renovations or modifications that will be necessary? A tenant who isn't going to be there for long may not make it worthwhile to spend significant time customizing their space.

• Do other potential tenants have been looking at the space? It may be a smart move to try to make a deal with potential long-term tenants if you have several candidates.

• Is there a possibility that the retailer will offer a long-term lease? Based on this test, the retailer may consider a longer-term arrangement. This would result in a positive ROI long term.

The Plus Side Of Pop-Ups

Pop-ups can be generated in many commercial locations and all types of commercial property. Property owners can view pop-up shops as a source for long-term tenants. Pop-ups are often used by retailers to test the waters and gauge public reaction to a particular concept. If the trials go well, the company might decide to commit more permanently to the space.

Pop-up stores that provide a memorable and interesting experience for customers are even better. The retailer and the space both benefit from the increased interest and activity. Visitors may visit the store to see other businesses nearby and might decide to go back to the shop in the future.

Even after the pop-up is over, a successful experience can still impact the property. Others will be interested in seeing how the retailer managed to attract shoppers and whether they received positive feedback. These details can prove to be helpful to prospective tenants, both short-term and long-term, who are considering renting space in the same location. A successful pop-up store in this location builds trust among consumers and retailers that it is a location that can support businesses.