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Pop-Up Shops: A Short-Term Solution to Vacancies

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Landlords and their leasing agents must get creative when vacant retail space lingers. Not only does this empty space strain the property owner, but it creates an eyesore in the community. An easy way to remedy both problems is to lease the space out on a short-term basis.

There are plenty of businesses that lend themselves to temporary occupation. Holiday shops, mobile art exhibits, start-up designers and well-known retailers with excessive merchandise can operate as pop-up shops, or retail space that “pops up” one day and disappears over time.

Pop-up shop leases usually last for six weeks to 12 months, with many non-seasonal retailers willing to sign month-to-month leases that could result in long-term tenancy. Rents for pop-up shops tend to run lower than those secured by traditional leases, sometimes by 50 percent.

While this may be unattractive to landlords, the prospect of some rent is better than no rent. The aesthetic value that a bustling pop-up shop can add to a center should not be overlooked as well. It can only help consumer confidence. The short length of these leases can also be a huge benefit to landlords. They provide immediate mortgage assistance, while leaving prospects open for long-term leasers once the market becomes more favorable.

Summer is the ideal season to focus on leasing vacancies, as costume shops, Christmas stores, and gourmet food and gift basket providers are in need of space for the upcoming holiday season. For more information on potential pop-up shop tenants or space, visit OpenPop-UpShops.com or PopUpInsider.com.

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