Leasing Tip of the Day: Transform Vacancies into Opportunities with Pop-Ups

Retail isn’t dead—bad retail is. Good retail is evolving, and as a Rockstar, you need to embrace this change. Disruption is your opportunity. One trend to try: Pop-up stores.

Apparel retailers are leaving shopping centers, but you can attract them with an affordable rate for a pop-up shop. This gives them a low-risk taste of the potential without the stress of a big lease or upfront construction costs.

Here’s how to make pop-ups work:

1. Seasonal Opportunities: Pop-ups excel during the holiday season or other key times like back-to-school. Focus on seasons when customers are looking for specific products. The main challenge for these retailers is usually staffing, not merchandise.
2. Avoid Service Businesses: Don’t offer pop-ups to businesses requiring significant infrastructure or extensive build-out. They aren’t suited for the temporary nature of pop-ups.
3. Target Digitally Native Brands: Brands like Away luggage are actively using pop-ups and seeing sales surge. Reach out to your favorite online brands and propose a pop-up opportunity.
4. Include Recapture Rights: When drafting a short-term pop-up lease, ensure you include a clause allowing the landlord to recapture the space if a long-term tenant comes along.

By getting creative with pop-ups, you can fill vacancies, attract new retailers, and keep your centers vibrant and dynamic. Embrace the evolution of retail and seize these new opportunities.