How landlords view pop-ups 🎈

Last month I got a question so good that I decided to write a whole newsletter about it.

The question was:

“A landlord is offering a space for a long term lease - would she lease it to me as a pop-up, for just six months or so?”

It is such a good question that I couldn’t pack a full answer into the end of our Q&A. Here’s what I said in the webinar: Don’t worry about what a landlord will or won’t let you do. Instead, stay true to YOUR business plan and make a plan that works for YOU.

But, let’s assume you’ve done just that and concluded that it does work for your business plan to pursue a short term deal. Would a landlord even be willing to entertain it?

The short answer is maybe. Deals - even short term deals - take a lot of time, money and attention, and many landlords would prefer vacancy than losing their chance at a long term deal because they have a pop-up in place.

Nevertheless, there are a few situations, from a landlord’s perspective, where pop-ups make sense…

As part of a larger retail project: Pop-ups have been trendy for a few years now, and the verdict is in… shoppers like the ✨surprise and delight✨ of a pop-up. Some landlords with bigger retail developments keep pop-ups in the mix on purpose. This makes sense for these landlords because part of their job is creating a merchandising mix and marketing program that draws 👣 foot traffic to their shopping center. All the retailers at the center benefit from increased foot traffic. Higher foot traffic = higher sales = higher rents - at least, that's how landlord math works. Example: Wayside Burlington

If the space can’t be leased long-term: Sometimes, a space can’t be leased long-term. Maybe the landlord is planning to redevelop the shopping center, or maybe the adjacent tenant is going to expand into the space at the end of their busy season. It can be possible to snap up a gem for a limited time before it becomes something else. The downside here, of course, is the risk of falling in love with something you can’t have. 'tis better to have loved and lost, I guess? Example: Van Gogh: The Immersive Experience

If they’re hoping you’ll stay long term: Smart landlords know that the value of great retailers is so much more than their rent - and so, if they want you badly enough, they may be willing to let you do a pop-up trial run in the hopes you’ll sign on as a long-term tenant. They’ll also be hoping your sales will be high enough that you’ll feel comfortable committing to whatever rent they’ve determined to be market. Example: Nicecream

If they aren’t optimistic about their other prospects: Sometimes, when a landlord doesn’t think they can secure a long-term lease, they’ll consider a pop-up. Maybe the space is funky, or the location is weird. Maybe other vacancy on the block is driving rents down. Maybe they’ve been trying to secure a long-term tenant for a while to no avail and are ready to get creative. Whatever it is, if this is the situation, make sure you know why the landlord doesn’t think they can get the long term deal they want, and make sure that works for your business.

If the rent is really high: Everyone has a price! Even if a short-term deal isn’t a landlord’s first choice, a 💦 juicy enough rent can almost always tip the scales. And this does happen sometimes - think about big brands who “take over” a prime retail space for a limited time. Example: Google NYC Pop-Up Store

Now that you’ve had a peek inside the 🧠 mind of a landlord, you can plan your pop-up accordingly!