Law Office of Ryan S. Shipp, PLLC

Pop-up stores offer options

Major disruptions in the retail sector across Florida and around the country have created changes within the commercial real estate market. Many retailers have either gone out of business or have retreated from brick-and-mortar stores to concentrate on e-commerce efforts. As a result, landlords and property managers are actively seeking new commercial tenants while entrepreneurs are likewise seeking opportunities.

One concept that continues to grow is that of the "pop-up store". This is a business that does not sign a long-term lease in a commercial development, such as a shopping center or strip mall, but instead moves into a space for a short period of time, sells its products, and then closes.

This approach often works well for businesses that specialize in seasonal products. For example, there is not a year-round market for Halloween products, although seasonal sales for this holiday are often enormous. Several companies that specialize in the sale of hollowing costumes, decor and candy approach owners of vacant commercial property and agree to operate their business from sometime in September through Oct. 31 or a little bit after. While most landlords and property managers would prefer to have a long-term tenant, working with seasonal pop-up stores provides some cash flow. It can also bring additional foot traffic into a shopping area, boosting business for other merchants.

Commercial real estate property owners who are concerned about vacancies may benefit from speaking with an experienced attorney who could provide suggestions concerning managing the resulting financial difficulties and avoiding foreclosure. If a landlord believes that welcoming pop-up stores into its property is a good idea, the attorney may also be able to assist in drafting an appropriate short-term lease agreement.

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Law Office of Ryan S. Shipp, PLLC | 814 W. Lantana Rd., Suite 1 | Lantana, Florida 33462 | Phone: (561) 699-0399 | Map & Directions