A Landlord Steps In
With the growing interest in the pop-up phenomena, we asked Sandy Shindleman, the CEO at Winnipeg-based Shindico Realty Inc., a lifelong commercial real estate practitioner, for his opinion and ideas on the concept. With a list of designations that include CCIM (Certified Commercial Investment Member), SIOR (Society of Industrial and Office Realtors), CIPS (Certified International Property Specialist) and FRICS (Royal Institution of Chartered Surveyors Fellow), he has been a CCIM senior instructor since 1980 teaching worldwide and has served on the Board of Directors and is a past President of the CCIM Foundation. A Manitoba ‘Entrepreneur of the Year’, he is an advisor and asset manager for several Canadian Pension Funds and family offices. And he is a fan of the pop-up concept. Here is what he had to say…………
Pop-up stores are the newest trend in leasing retail space for this millennium. If you haven’t had an opportunity to visit a pop-up retail concept at your local shopping destination, they are essentially a way for businesses to temporarily lease a space (from one day to a couple of weeks) to test or promote a new concept or idea to the market, launch a new product, or just generally promote their business in a location that would not necessarily support a permanent location. They ‘pop-up’ for a day or two and then disappear.
Pop-up stores should not be confused with temporary tenants. Temporary tenants usually rent a space for an extended period of time (months) with options to extend their ‘temp’ lease. Concepts such as Halloween stores, or H&R Block locations that are set up to handle the tax season would be good example of temporary tenants.
From a landlord’s perspective, Pop-up stores can be a great draw to a property as they create excitement. Pop-ups generally produce a lot of marketing hype around the store, as the goal is to draw in as many customers as they can in a short period of time. If properly curated, a pop-up can draw new customers to your centre, creating extra traffic to the permanent tenants. It’s a win-win situation for the landlord, tenants and customers alike.
Of course, a pop-up store’s commitment to pay rent is usually less desired than a long-term tenant, but the upside is there are no modifications needed or fixturing costs for the landlord as the pop-up will take the space in ‘as-is’ condition. And hey, if the pop-up is very successful, you never know, but you may have found the next long-term tenant for your space…………. Sandy Shindleman, CEO, Shindico Realty Inc.