While some might say retail is dead, there seems to be a zombie in the room that we only see once a year: pop-up Halloween retailers. It’s almost a sign of the oncoming season when you finally see the Spirit Halloween Stores or the Halloween City stores open their doors in the forgotten corpse of stores like Toys-R-Us. This is how most people engage with pop-up real estate stores. However, pop-up real estate exists year round and there are many pop-up shops or bars to be found in larger cosmopolitan cities. While some landlords look down on the pop-up real estate trend, feeling like the temporary occupation of their space will be a hit to their reputation, many have embraced the model if their space fits the requirements. After all, a tenant with some money coming in for a quarter of the year is better than a vacant space losing money. Don’t get spooked by pop-up real estate deals. Here is everything you need to know about these stores as we enter the Halloween season.
Temporary Halloween Retailers Build Relationships
While this sector of real estate is fairly new, having only really exploded in popularity in the last decade, the pros that work for companies like Spirit Halloween and Halloween City are pop-up real estate pros. They have worked with hundreds of landlords across the nation. They know what works and what does not. And furthermore, as their brand gets more established, the best pros will establish long standing relationships with landlords that have a desirable location. Some stores even go so far as to lease the space for a year or more, just to keep a hold on a good location. Landlords need to approach pop-up real estate deals with caution though. While pop-up real estate is a good addition to your portfolio, stable tenants shouldn’t get passed over for seasonal retailers.
Many Stores Operate As Turn Key Operations
In order to make a tidy profit, companies like Spirit Halloween need to be operational almost immediately, draw interest and then get out quickly when the season is over. Companies like Spirit do their own freight and shipping, recommend how to set up shop, give clear instructions how props and decorations should be set and provide an easy-to-use POS retail system that anyone can be in charge of. The deals and overhead are designed to make money and be relatively easy to run.
Getting Creative With Space
In addition to being easy to run, pop-up real estate requires a bit of creativity when selecting a space. While you might see many pop-ups such as Spirit habitating in spaces once filled with a Bed, Bath and Beyond, you might also find a spirit in a shopping mall, in a former large warehouse or even a massive tent. We’re not even joking about that last one. Here is the video of Halloween Express setting up the tent. While there is a definite need for traffic and enough parking to accommodate, any smart landlord with the right property could fill it with pop up real estate for the Halloween season.
Business That Markets Itself
Halloween stores tend to work well because people expect to see them around this time. They come out every year and for people that want a more involved costume or decoration buying process, a Halloween store is the place to go. This works well for property owners that want to make a profit and worry that they won’t make back their investment. The whole operation relies on instant gratification. Rather than ordering a costume or a prop online, you get to hold it right in your hand at the shop. While most people are accustomed to the near instant shipping available from Amazon, many people still prefer to go and try on the costume. Furthermore, the attitude and set up of the store makes people excited. At that point, it becomes experiential retail as well, which is something you can’t find at Walmart.
What Does This Mean for Landlords?
For commercial property owners that are watching their profits get eaten away every month that their property sits vacant, pop-up real estate is a way to make a tidy profit and avoid losing money in the last quarter of the year. Typically you can be as hands on or as removed as you want, either by allowing a store to select your space if it meets their criteria or even consigning to allow more entrepreneurial minds to run the store and make even more off the popular night.
If you’re interested in pop-up real estate, you will need a team on your side to help you negotiate a deal and to help maintain your property as the season runs. Contact the team at LCI Realty today and let our team help you scare up a really good deal! Call 480-565-8981 today.