What is a pop-up shop? Everything you need to know to try short-term retail > How to set up a pop-up shop in 6 stages. Set yourself up for success with this handy checklist > How Long Should The Pop-Up Shop Last? > Here’s why renting a space on a short-term is a great opportunity for occupiers
The flexible use of short-term retail is the perfect opportunity for retailers and e-commerce brands to experiment and be impactful. Short-term retail strategies are on the rise, as it’s a low-risk experimental play that could reap huge rewards. Used as a marketing tool, these strategies are ruling retail this year, be it the RealReal announcing 2018, the year of the pop-up stores or the fact that huge physical retailers like Toys R US and malls across the Americas have officially shut down.
With the rise in popularity of flexible retail spaces, more and more occupiers are choosing to rent a space on a short-term basis. But why is this a great opportunity? In this blog post, we will discuss the benefits of renting a space on a short-term basis, from cost savings to the ability to test out a space before committing to a long-term contract.
Renting space in the short-term is a trend that’s here to stay and affects consumer views (and wallets) for the positive.
Reasons why a short-term space should be a high priority for your brand
1. Short-term rentals are low-risk.
By renting a short-term retail space, brands are capitalizing on the digital generation’s need to ‘experience’ without shelling out tons of cash for a long-term, costly lease. According to TimeTrade research, roughly 85-90% of retail is happening in-store, and brands can capture this demand in any allotted window they choose – be it a week, or a few months – and drive measured results during this time period. For online-only retailers, this physical presence is especially important, since they might have fewer resources and funds to get into a top-notch, high-traffic retail space long-term.
Additionally, the nation’s high commercial real estate vacancy rates are prompting landlords to rethink their own leasing strategy, with negotiations being more favorable for the renters. With lower risk, and more vacant space than the nation’s seen, renters can get the short-term space they want without breaking the bank.
2. Renters can test and expand into new markets
Short-term rentals are a great opportunity to expand your brand into a new market, or test a physical location out for the first time. Brands like Everlane and Warby Parker have experimented with this concept in multiple cities, eventually leasing brick-and-mortar space in specific locations. Storefront has been popping up with e-commerce brand MM.LaFleur to strategically acquire new customers in new cities, from LA to Dallas. Their goal is to “provide our returning customers with a rich and immersive experience that will allow them to experience our brand in a new way,” using the temporary nature of short-term to give such impact. Setting up for short-term in different cities gives brands unique consumer data, builds deeper relationships, and increases brand awareness, providing them with unlimited opportunity for growth.
3. Renters can experiment
With short-term, retailers and renters can use temporary retail to experiment with products, collections and collaborations. A short-term lease can act as a case study that brands can use to either build out a permanent product line or get to know their consumers more from a physical outpost. Take Diesel, for example, who announced its new knock-off collection with a pop-up store in Soho to sell limited-edition merchandise and get to know its consumers better.
Using short-term space is a smart way for brands to announce temporary collaborations and collections as well. High-end fashion brands like Louis Vuitton are using short-term spaces to partner with artists and showcase new designs and branding, an experimental collaboration that came alive through the help of physical space as opposed to just selling and announcing it online.
Whether it be purely experimental, expanding into new markets or because short-term is low-risk, brands are considering short-term retail spaces to expand their business and boost sales.
4. Advantages of short-term rentals for occupiers
Short-term rentals allow occupiers more flexibility, as they can move in and out of space easily without worrying about breaking a long-term lease. This is great for businesses that are just starting out because they can test out a new location without committing to a long-term agreement. Additionally, short-term leases are more affordable than a traditional leasing agreement, making it a great option for those who are looking to keep their overhead costs low. Finally, there is less of a hassle when it comes to maintenance or repairs for a short-term rental; the occupier can move out without worrying about any problems or extra costs. All in all, renting a space on a short-term basis can be a great opportunity for occupiers.
Renting on a short-term basis also allows occupiers to save money, as they are not locked into an expensive long-term contract. This provides them with the financial flexibility to grow their business and take advantage of opportunities that may be time-sensitive. Furthermore, short-term renting offers an occupier the opportunity to make modifications to the rented space based on their specific needs, allowing them to create the perfect environment for their business to thrive. Short-term renting also allows occupiers to move quickly and scale up their business in no time. All in all, renting on a short-term basis provides many advantages to occupiers and is a great opportunity for those looking for a flexible solution.
Furthermore, renting a space on a short-term basis is a great opportunity for occupiers who need to adjust their office space quickly. This type of arrangement can be incredibly beneficial for businesses dealing with sudden changes in staff size or location, giving them the flexibility to modify workspace quickly and efficiently. Therefore, it is clear why renting a space on a short-term basis offers so many advantages for occupiers.
5. Eliminate the commitment to long-term leases
They also provide the flexibility to quickly adapt to changing market conditions, allowing tenants to scale up or down with ease. Renting space on a short-term basis is an excellent opportunity for occupiers who cannot commit to a longer-term tenancy agreement. This provides a great option for those who are starting a new business or are uncertain of the amount of space they may need in the future. Short-term rentals can also be beneficial for those looking to expand their business, as they can easily increase or decrease the size of the space they are renting.
Despite the flexibility that comes with a short-term rental, occupiers can still enjoy the same amenities and services that come with a longer-term tenancy agreement. Short-term rental opportunities allow tenants to easily test a market without making long-term commitments and ensure they are in the right location before committing to a long-term lease. This is a great opportunity for occupiers, as it means they can explore their options without any real risk and ensure they get the best deal possible. Additionally, it allows them to save money as they are only paying for the period of time they actually need the space. It also allows for more flexibility and greater control when it comes to changing their space or expanding their business.
All in all, renting a short-term space is a great opportunity for occupiers, as it gives them a chance to find the perfect space for their needs without the stress and commitment of a long-term lease. All in all, short-term leases are a great opportunity for occupiers as they provide the flexibility to operate with minimal commitment. There can be significant cost savings compared to longer-term leases due to lower rent payments and minimal capital expenditure for furniture and fixtures. This convenience is one of the major advantages of choosing a short-term lease!
6. Gaining an Edge Through Technology & Amenities
Renting short-term space gives occupiers access to the latest technology that can help them gain a competitive edge. This is especially beneficial for businesses that must remain agile and flexible in their operations. Short-term leases offer occupiers the chance to focus on their core business activities instead of worrying about long-term commitments.
Additionally, they also allow occupiers to test new markets as they remain agile and can quickly relocate if needed. All of these advantages make renting a space on a short-term basis a great opportunity for occupiers. This includes high-speed internet and smart technologies that can help businesses run more efficiently. Renting space on a short-term basis is a great opportunity for occupiers as it provides a range of benefits that don’t come with traditional leasing. Not only can you save on costs, but you can also access more flexible terms and be able to move more quickly into the space.
Additionally, you can access the latest technology, allowing you to keep up with the latest industry trends. All in all, renting a space on a short-term basis can positively impact your business and open up more opportunities.
Finally, renting a space on a short-term basis is the ideal solution for occupiers looking for flexibility and cost-savings. It provides an excellent opportunity to test the waters and avoid pricey long-term commitments while staying agile to adjust to ever-evolving market conditions.
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