What is Pop-Up Retail?
Whether you’ve heard about pop-up retail as temporary retail, flash store, or pop-up shop, pop-up retail is quickly increasing in popularity, and for good reason. Pop-up shops have been around for as early as the 1990’s in high fashion cities all over the world, but most famously began with “pop-up” Halloween costume shops that of course, only have a seasonal purpose. Now, however, these temporary, short-term stores that are around for a limited time are becoming the best and biggest way for retailers to interact with their customers. Brands that use online stores as a trial for their products often engage in pop-ups to gauge brick-and-mortar store interest. But, let’s get one thing straight: pop-up retail can be anything from a clothing store, to a pet store, to a restaurant.
Pop-up retail presents a very special opportunity for both retailers and real estate owners. This huge trend that has seen an uptick of $500 million in retailer spending for popups from 2016 to 2017.
These temporary set-ups are ideal for taking advantage of vacant space, and it brings ideas and e-commerce to life. For retail store owners, seasonal stores can occupy the space for as little as 3 days, and as much as 3 months, and the cost of leasing is usually paid up front for such a small rental term.
For warehouse owners and those looking into investing in commercial property, retail stores have such concentrated sales at such a high influx that they require auxiliary storage space, often seeking out local warehouses and storage to do so. For those who are considering taking the leap and redeveloping their space, this trend is definitely something to keep in mind, especially since there are a number of features and appealing characteristics that are specifically applicable to pop-up renters.
Those who are developing their properties or currently have construction plans might consider creating their space for pop-up retailers, like at 1102 Pearl in Boulder. Here, while 1102 goes under a major renovation, an art store that is working in partnership with the City of Boulder and the Spinster Sisters both occupy a portion of ground retail floor space with short-term leases.
Owners no longer have to choose between a vacant space and a tenant that they may not be completely comfortable with for a year or even longer. The rise of pop-up retail finds a common ground, allowing for shorter rental terms and the ability for owners to make money back on their property.