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A shortage of pop up shops

 

“The demand for pop-up stores has never been so high…” says Fairfax Media

A number of Fairfax Media publications – The Age, Sydney Morning Herald, Brisbane Times, BRW (and other online sites…) – ran an article recently on the increasing demand for pop up shop locations… and the continuing hesitation of landlords to take up the opportunities they may present. A couple of high-profile commercial leasing agents were quoted – Zelman Ainsworth (CBRE) and Sally Harding (Lend Lease) reported higher interest in short-term tenancies… “every day I get a tenant asking for a pop up space…” (Ainsworth)

A general theme of this article was the lack of willingness from landlords to offer pop-up tenancies – many are concerned with the cost and effort of granting a short-term licence… (potentially) reducing their security of income and de-valuing their property – with the added risk of tenants staying on at discounted rates (in NSW, the legislation doesn’t adequately address pop up retail leases)… which seem to outweigh any benefit of having their shop occupied for a short term.

On the up-side, a handful of agents support the notion of short-term leases. Some pop up properties command higher rents (compared to their standard long term rates) – and pop up leases can present an opportunity for short-term tenants to test the market (and perhaps roll into a long-term lease). A less-tangible benefit is that pop ups save a property from appearing vacant (which can de-value a location in the eyes of potential long term tenants) – also attracting vandals and graffiti…

The article detailed some pop up success stories (good deals for the tenants and the landlords)… an up-market Italian dessert stand in Sydney’s Strand Arcade, and the artist who popped into Westfield Miranda for 3 months. Other “pop up players” haven’t had such a smooth run – Melbourne wine merchants Vinomofo searched long and hard (“a huge investment in time and energy”) to settle on a location which wasn’t quite ideal… and a pop up matchmaker service initiated by the City of Boroondara in 2014 had many more applicants than available spaces – they also had to “broker” the few matches they did achieve(comment by pUsM : other Melbourne councils have approached their pop up programs with varying results – some of them have been quite successful)

Read the article here (The Sydney Morning Herald, 9th April 2015)

Cremeria de Luca Strand Arcade Sydney

image : Cremeria de Luca desserts, Strand Arcade Sydney (SMH)

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