Pop-Up Potential: Why Landlords should take notice

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Pop-Up Potential: Why Landlords should take notice

Nick Russell, CEO of WeArePopUp, Daniel Norris, Partner of Hogan Lovells and Dan Innes, Managing Director of Innesco, talk to Landlords about the value of short-term leasing. 

What began as a Christmas phenomenon or an avenue explored solely by the average charity store has grown into what is now considered to be an innovative and sustainable business model.

Pop-up retail or flash retailing as it is also known is gaining recognition worldwide as, not only a versatile option for retailers who perhaps want to dip their toes in the water before investing in bricks and mortar, but as a sustainable solution in addressing the issue of store vacancies. 

There is no doubt the perception of pop-ups has changed. Now associated with niche and stylish brands covering food, fashion and lifestyle among others, pop-ups are providing consumers with an exciting alternative to the typical shopping experience of a high street or mall. They exude energy and a genuine sense of community.

None more so than BoxPark; a collaboration of temporary stores offering diverse fashion, lifestyle and cuisine from all over the world. Although BoxPark has been established for several years, its tenants are ever-changing to respond to customer wants and needs and thus it recognises the importance of maintaining vibrancy and refreshment.

Pop-ups would seem a perfect fit for asset managers looking to occupy empty stores. Vacancy rates are higher than they’ve been in a decade and pop-ups do away with the lengthy process by which long-term leases come to fruition. In short, empty stores cost their owners money and the delays are simply a wasted opportunity. Surely it’s better to accumulate some revenue than none at all? Pop-ups may represent a reduced income, but it’s an income nonetheless. 

There’s also nothing to say that any short-term interest in units can’t be converted into long-term. Short-term licenses, and the pop-up phenomenon can therefore be seen as a feeder. An incubator. Their attraction and variety undoubtedly drives footfall, and that can only make for happy customers and asset managers alike.

Richard Ingoldby, Digital Executive

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